Tesla vs Lucid Which Should You Buy?

Tesla and Lucid Motors are two prominent electric vehicle manufacturers that have been making waves in the stock market. Tesla, founded by Elon Musk, has long been the leader in the EV industry and its stock has seen significant growth in recent years. However, Lucid Motors, a newcomer to the market, is gaining traction with its luxury electric vehicles and innovative technology. Investors are closely watching the competition between these two companies as they continue to push the boundaries of what is possible in the electric vehicle market.

Tesla or Lucid?

When comparing Tesla and Lucid, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Tesla and Lucid.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Tesla has a dividend yield of -%, while Lucid has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Tesla reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Lucid reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Tesla P/E ratio at 88.11 and Lucid's P/E ratio at -1830.71. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Tesla P/B ratio is 16.01 while Lucid's P/B ratio is 2026.33.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Tesla has seen a 5-year revenue growth of 2.63%, while Lucid's is 0.55%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tesla's ROE at 19.29% and Lucid's ROE at -72.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $336.00 for Tesla and $2.23 for Lucid. Over the past year, Tesla's prices ranged from $138.80 to $358.64, with a yearly change of 158.39%. Lucid's prices fluctuated between $2.02 and $5.31, with a yearly change of 162.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.