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Lucid vs. Tesla – Why You Should Be More Cautious With One | The Motley Fool

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In this segment of Motley Fool Live, recorded on Dec. 7, Fool contributors Lou Whiteman and Toby Bordelon make a quick business comparison between Lucid (NASDAQ:LCID) and Tesla (NASDAQ:TSLA), and Tesla comes out ahead.

Lou Whiteman: But yeah, would I buy it? I’m skeptical of Tesla’s valuation. Lucid is 10 percent of Tesla, but honestly, Lucid’s business isn’t 10% of Tesla’s business right now. Lucid hopes to produce 20,000 vehicles, next year, 20,000 vehicles.

Toby Bordelon: Tesla did 240 in the last quarter, 240,000.

Whiteman: Yeah. Quarter million a quarter. Lucid’s only taking reservations from, I think maybe it’s two dozen countries. I love this company. I think this company could, will, should end up being one of the winners. But no, I just can’t.

A lot of people have missed out on fortunes because of valuations, but I’m stuck in the mud on that one, I can’t. I agree with you, after the SEC investigation, it didn’t even bring it down enough for me to say, I’ll take a risk, but that’s me. That’s my bugaboo evaluation.

I would bet that in the next few years, Lucid will both turn into a better company and I’ll probably have a better chance to get in.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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