The stock price of electric car manufacturer Lucid has been through some considerable ups and downs over the past couple of years. The stock reached as high as $55 in 2021 but is now trading more than 20 times lower. Given the unpredictability of Lucid stock’s price movements, many investors are wondering where the stock might end up in the long term. In this article, we’ve examined several different growth scenarios that might help us understand what to expect from the stock in the long run.The values in the table were calculated using LCID’s price of $2.66 (as of April 11, 2024).*The S&P 500 has averaged an 11.13% compounded average growth rate since 1973. **NASDAQ’s tech-focused QTEC index has averaged 15.2% since 2006.Buy Lucid stockYour capital is at risk.In order to come up with plausabible scenarios for future price movements of Lucid (LCID) stock, we’ve used three different growth scenarios and inputted them into our profit calculator. The first was a simple 5% annual growth rate simulation, which assumes that LCID will appreciate by 5% every year for the foreseeable future. That’s arguably the least possible scenario, as the company is relatively new and belongs to the EV sector, which is notoriously competitive and volatile.For the other two scenarios, we’ve decided to project LCID’s price based on the S&P 500’s historical price activity. This is a useful representation of what we can expect from Lucid if it follows the long-standing growth rate of the world’s most popular stock index. Finally, we’ve simulated the price based on the historical growth rate of the First Trust NASDAQ-100-Technology Sector Index (QTEC), which is perhaps the most representative due to its connection to technology companies.Assuming that Lucid grows at an 11.13% CAGR of the S&P 500, the stock could reach $16 by 2040, which would be a 501% increase compared to today’s rates.If the stock would grow at a more expedited rate, let’s say at the same pace as QTEC grew in the past, Lucid would reach $29.48 by 2040, which would be more than a 10x increase compared to the current price.If we apply the same methodology we’ve used for projecting prices for 2040 and extend it by another decade, we arrive at some interesting projections.If LCID were to grow at the same rate as the S&P 500 index did in the past 50 years, we could see the stock reaching $45.95 by 2050, which would be a 1,627% increase compared to current rates. Still, that wouldn’t be enough for Lucid to surpass its all-time high of roughly $55 recorded in November 2021.If we assume a more bullish trend and analyze where the stock could be heading if it follows the multi-year trend of the QTEC index, Lucid stock could reach as high as $121.37 by 2050. That would mean that LCID would surpass its previous ATH by over 2 times and grow by nearly 4,465% from current rates.With long-term price prediction behind us, let’s move on to a more short-term-oriented analysis. For the purposes of this section, we’ve consulted our price prediction algorithm for Lucid stock. Buy Lucid stockYour capital is at risk.Interestingly, the algorithm expects quite a significant recovery in the price of Lucid stock in the next 12 months, which would greatly surpass any long-term projections made in the previous sections of this article.According to the algorithm, Lucid stock price will continue to gain momentum over the next year and grow to nearly $30 by April 2024. In other words, the algorithm expects LCID to appreciate in value by over 11 times. To be fair, LCID has shown an inclination toward very volatile price activity in the past, so it’s definitely in the realm of possibilities to see the stock gain more than 10x within a single year.Lucid stock has been one of the more volatile stocks in the past couple of years – it traded as high as $55 in 2021 and now changes hands below $3. However, there’s reason to be optimistic about the future, especially if our short—to medium-term algorithmically generated price prediction holds.In the meantime, you could consider checking long-term price projections for other major companies. Tesla forecasts for 2040 and 2050 might be particularly interesting to you due to both Lucid and Tesla competing in the same market. If you are more interested in other sectors, you could check how high the AI revolution could push Microsoft by 2050.
