Grab This Cheap EV Maker Stock Before the Close Today

When the chance to own a great stock at a discount comes up, you've got to snag it. That goes double when that great stock also happens to be cheap to begin with.

If that's not quite an engraved invitation for you, I have to say that this cheap, on-sale stock also happens to be perfectly positioned in the red-hot electric vehicle (EV) sector.

It went public recently in a sensational IPO, but then it started getting clobbered. Its loss is our gain.

We have to move to buy this stock quickly, though, because it's starting to move back up off key support. This cheap stock won't stay that way for much longer.

This Great EV Stock Has Had a Bumpy Ride

Electric vehicle stocks have made a huge splash this year, based on the rapidly accelerating growth in the market.

But we know that there's an even bigger profit catalyst waiting out there: Nearly all of the world's developed countries are pledging to phase out or eliminate gas-powered, internal combustion engine vehicles by the mid-2030s, if not sooner.

That's an ambitious goal, and it's kicked off what's practically a horserace among EV startups, all out to grab market share - and maybe dethrone Tesla Inc. (NASDAQ: TSLA) in the process.

Lucid Group Inc. (NASDAQ: LCID) is up there with the best of 'em. It made its market debut back on July 26 via the special purpose acquisition company (SPAC) Churchill Capital Corp.

Shares rocketed more than 10% on the first day of trading... but the stock has been hammered since mid-August.

But the reasons for the sell-off are pretty easily explained, and they don't really dent the business case for owning LCID. The shares' "lockup period" recently ended, and early Lucid investors - big ones - are now free to sell their shares on the open market. Compounding that is a recent announcement that the company is staging a "cashless redemption" of warrants.

Selling off on news of that redemption is a bit of a head-scratcher; it generally creates a leaner, meaner capital structure, reduces dilution, and is all-around bullish. There's no good reason why this stock should sell off like this, and I'd be lying if I said "I get it." It's a classic case of herd mentality.

Like I said before, its loss is our gain. But the beautiful entry window we're getting is closing fast.

Here's How to Play It

You can see on the chart below that back on Sept. 1, the stock bounced off the $17/$18 level. It climbed back to just below $19 before the most recent sell-off began. The stock is already climbing back toward $20; it was up nearly 5% at midday yesterday - it looks like the crowd is starting to get wise to the fact that a redemption is a good thing. The upshot is that $19 territory is going to be a distant memory before long.

Lucid is at best a few months away from offering the first of its long-awaited luxury EVs - the Lucid Air. On paper, these could give the cushiest Tesla models a run for their money. The Air is marketed as a high performance, ultra-efficient EV sedan to compete with offerings from companies like Tesla, of course, and Mercedes Benz.

Lucid is also planning to roll out its Gravity performance SUV in 2023.

The company claims that its in-house developed technology is the "quickest, longest-range, fastest-charging electric car in the world."

This recent downward pressure could be the year's best entry point of any EV play. I'd love to own this company for 20 bucks.

More than a great EV stock, LCID is basically the posterchild for the explosive profit potential in the pre-IPO phase of a business's lifecycle. See, it's possible now for regular investors to get dibs on "pre-IPO rights" in companies - sometimes these can be had for around $1. When and if the companies go public, these rights have the potential to skyrocket in value. I'm talking exceptional peak gains of 2,088%, 6,566%, 8,280%, 9,075%, even 27,550%. My colleague, Shah Gilani, is announcing details of a new pre-IPO opportunity live on Sept. 13, at the opening bell. Don't miss it...

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