In my previous article on Lucid Group (NASDAQ:LCID) I said that the launch of the Lucid Air would propel its stock upward. LCID stock has more than doubled since then from a price of under $20 to a Dec. 3 opening of $48.55. It was a pretty simple thesis as a successful launch would have propelled the stock upward. Now that the Lucid Air has shipped and is out in the market, can LCID stock sustain this upward momentum? Is this a sell-on-the-news event?

In the short term that is nearly impossible to predict. There are many macro-economic forces at work today in the stock market. Forces such as supply-chain issues, inflation, and new variants are always weighing in the mind of investors. These issues have nothing to do with a company’s long-term prospects. Yet this can send high beta stocks like LCID crashing in an instant.

This makes short-term forecasting very difficult. I don’t know if LCID stock can sustain its upward trend in the short term. However, Lucid Group’s long-term prospects are as bright as ever.

The Biggest Risk for LCID Stock

I have stated before that I believed the largest risk for LCID stock is the execution risk for the Lucid Air. After all, this was the very first car that the company would launch. From a stock market narrative, LCID stock had all the makings of a large upward move. But it all hinged upon the successful execution of the Lucid Air launch.

Luckily these concerns were put to rest. Lucid group announced the delivery of the first batch of the Lucid Air Dream edition. Around 520 customers received their Lucid Air Dream Edition in an exclusive event held in California. The event consisted of a first drive starting from the company’s Silicon Valley headquarters through ancient redwood forests and California’s iconic coastline.

In a note, CEO Peter Rawlinson stated “Lucid Air has truly been a labor of love for myself, and indeed, the entire Lucid team. While this moment is significant, it is also but another step on our path. It heralds the opening of our next chapter — one where we will scale an exceptional Lucid experience for a growing number of customers worldwide.”

The company aims to start deliveries on its lower-end Touring and Pure models by 2022. The news of these deliveries could be the catalyst that sustains LCID stock’s momentum.

Lucid Air is Car of the Year

Another major win for the company is the Lucid Air winning MotorTrend’s Car of the Year for 2022. According to the company’s press release it has been the first instance in which an initial product from a new automotive brand has won that distinction. This is very impressive indeed and speaks to the engineering talent at the Lucid Group.

It’s no surprise to me that Lucid Air was recognized for this award given the strength of the vehicle’s specs. The Lucid Air has an estimated EPA range of 520 miles and over 1,100 horsepower. These specifications make the car top of its class for electric vehicles.

MotorTrend scores vehicles based on six key criteria: efficiency, value, advancement in design, engineering excellence, safety and performance. The Lucid Air scored well on all criteria. It also bested several vehicles from established manufacturers such as Mercedes‑Benz S-Class and the Porsche Taycan.

Winning the Car of the Year would only fuel the hype and further boost the prospects of LCID stock.

Investor Takeaway on LCID Stock

LCID stock price has certainly had quite a run so far. However, given all the factors in the company’s favor, there’s no reason it can’t reach even higher highs. There is a chance of a pullback, though, given all the macroeconomic chaos in the market. Investors may view any pullbacks as a buying opportunity for LCID stock.

Remember that Tesla (NASDAQ:TSLA) is a trillion-dollar company. Lucid Group’s current market cap is only $77.5 billion. Therefore investors would be well rewarded if Lucid can achieve even a fraction of Tesla’s success.

On the date of publication, Joseph Nograles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joseph Nograles is a part-time freelance copywriter focused on the financial industry. He has worked in a wide variety of industries from tech to consulting with one of the “big four.” He has always enjoyed analyzing businesses and has been a CFA charterholder for nearly a decade now.