Lucid Group Inc (NASDAQ:LCID) stock rose 7.26% (As on July 4, 4:59:25 AM UTC-4, Source: Google Finance) after Citi resumed coverage of the company with a Neutral rating and $8 price target. Given the stock’s relative valuation, recent EV price discounts and the time gap until Gravity SOP, a bullish stance on the stock requires some conviction on the H2 Air volume ramp and margin progression, the firm says.

Further, Lucid Motors made it a point to go above and beyond the industry standard when it released the Air, its first vehicle. With a range of over 500 miles, the Air was a strong statement from the EV maker. It entered the electric luxury sedan market late, but its range alone showed that it was a serious contender.

While the Lucid Air is not selling as strongly as its rivals like the Porsche Taycan and the Tesla Model S, the luxury electric vehicle maker is nonetheless optimistic about its potential. Just recently, Lucid and Aston Martin signed a deal that would see the American automaker supply powertrain components to the British sports car company. The Lucid Air also continues to earn accolades, including the 2023 World Car Luxury Car of the Year award.

Lucid plans to eventually offer vehicles that are cheaper, likely in the $50,000 range and thereby being competitors to the Tesla Model 3 and Model Y, the company is looking to provide innovations for even mainstream cars in the future. In a rather interesting statement, Rawlinson stated that the electric vehicle of the future only really needs 250 miles, and with Lucid’s technology, such a range should be achieved with a fairly small battery pack.

Additionally, the company has entered into a definitive agreement to establish a long-term strategic technology partnership with Aston Martin to accelerate the iconic British brand’s high-performance electrification strategy and long-term growth. Lucid was selected by Aston Martin through a competitive process and will provide advanced electric powertrain technologies, including its ultra-high performance twin motor drive unit, renowned battery technology, and revolutionary Wunderbox. The twin motor rear drive unit’s prodigious power combines with torque vectoring to extend the capabilities of the car beyond that achievable with a passive all-wheel-drive system. These technically innovative electric motors incorporate Lucid’s microjet stator cooling and wave winding, new heat exchanger technology and heightened coolant flow rate, as well as an accompanying battery system that is likewise upgraded for higher power and more precise thermal logic.