'The Second Tesla' Lucid Attracts Korean Retail Investors

Since the Beginning of This Month, US Electric Vehicle Startup
Lucid Records Net Purchase of 71.1 Billion KRW

Also Substantially Buys Nasdaq Tracking ETFs

[Asia Economy Reporter Minji Lee] Overseas investors known as "Seohak Gaemi" who invest in foreign stocks are expanding their interest in Lucid Motors, a U.S. electric vehicle company dubbed the "second Tesla."

According to the securities information system SaveRo on the 24th, domestic investors have net purchased Lucid shares worth 71.1 billion KRW so far this month. This is the largest amount invested among U.S. electric vehicle manufacturers, contrasting with domestic investors net selling Tesla shares worth 256.2 billion KRW during the same period. During this time, Lucid's stock price rose about 43% from $17.79 to $25.42, while Tesla's increased by only 2.4%.

Lucid is considered one of the promising U.S. latecomer electric vehicle startups alongside Fisker and Rivian. Recently, its premium model, the "Lucid Air Dream," scheduled for delivery to customers by the end of this year, received certification from the U.S. Environmental Protection Agency (EPA) as the vehicle capable of driving the longest distance on a single charge (837 km), attracting significant market attention. This surpasses the previous record held by Tesla's Model S, which had a driving range of 652 km, by approximately 180 km.

Since Lucid has not yet sold cars to customers, evaluations of its corporate value vary. Bank of America (BoA), which gave the most optimistic outlook, set a target price of $30 and described Lucid as "the most promising electric vehicle startup that is not behind even when compared to new models from Tesla and Ferrari." Morgan Stanley offered a more conservative view, setting a target price of $12, stating, "Although it is a super-premium electric vehicle company, it will be difficult to compete with existing large electric vehicle companies."

Meanwhile, domestic investors have been heavily purchasing ETFs that invest in the Nasdaq index this month. They bought ProShares UltraPro QQQ (ETF), which tracks the Nasdaq 100 index's returns threefold, worth 195.3 billion KRW; Invesco QQQ Trust, which tracks the Nasdaq 100 index returns directly, worth 81.8 billion KRW; and ProShares Ultra QQQ, which tracks twice the Nasdaq 100 index returns, worth 28.2 billion KRW, all ranking among the top net purchases. It is analyzed that as the Nasdaq index adjusted from 15,300 to 14,700 points earlier this month due to concerns about Evergrande Group and anxiety over the Federal Open Market Committee (FOMC) results, investors quickly flocked to ETFs tracking the index.

Researcher Daeseok Kang of Eugene Investment & Securities analyzed, "Expectations are growing that the Chinese government will prevent a disorderly bankruptcy situation regarding the China Evergrande Group's bankruptcy," adding, "Concerns about tail risk (a low-probability but high-impact risk) arising from Evergrande are also decreasing, reviving risk appetite."