The markets have been in a correction mode in recent weeks, presenting a good opportunity to accumulate quality stocks. Lucid Group (NASDAQ:LCID) stock should be among the top names on your radar to consider at current levels.

Relative tightening of liquidity by the Federal Reserve is one reason for concern in today’s market. The spread of the omicron variant has also impacted market sentiments. However, I believe that the markets still have plenty of room for growth.

LCID stock recently surged above $55 with a flurry of positive news flow. With profit booking and fundraising, the stock currently trades at $38. Gradual accumulation can be considered with Lucid likely to have a strong year in terms of business growth.

Lucid recently raised gross proceeds of $2 billion from a convertible senior note offering. Further, Lucid already reported $4.8 billion in cash and equivalents as of the third quarter. With the recent offering, the company boosted its liquidity buffer to over $6 billion.

I believe that the current cash buffer implies that the company is fully funded for the next 12 to 24 months. The company has projected negative free cash flows through 2024. Additional fundraising is likely in 2023. For now, there is unlikely to be any immediate dilution.

Clear Growth Visibility

Lucid Motors is positioned for strong vehicle deliveries growth in 2022 and 2023. This is a key reason to be bullish.

As of November 2021, Lucid has more than 17,000 reservations. This implies a revenue backlog of $1.3 billion. Deliveries growth is likely to remain robust considering the following factors.

First, Lucid is expanding presence in the United States. Further, expansion in Canada was due in fourth quarter. In the coming year, the company has plans to make inroads in the Europe, the Middle East and Africa. Big growth is also due in 2023 when Lucid expands in China. Therefore, with an aggressive geographical expansion plan, Lucid is likely to witness strong deliveries growth.

Second, the company currently has a manufacturing capacity of 34,000 vehicles per year. However, the second phase of expansion has already commenced and it will boost capacity to 90,000 vehicles per year. This will support growth in 2023 when the second model is launched.

Third, Lucid Motors has plans to launch Project Gravity in 2023. The SUV is likely to be another game changer for the company. The company claims that Project Gravity will be built on the most advanced EV technology. With the launch of Lucid Air, the company’s focus on technology is clear. The car is the first EV to be certified with a range of 520 miles from the EPA.

Of course, cash burn will be high in the first few years. With global expansion, sales and marketing expenses will also remain elevated. However, markets discount the future and Tesla (NASDAQ:TSLA) is a good example in the EV space. If vehicle deliveries remain robust for Lucid Motors, the stock will trend higher.

The Bottom Line on LCID Stock

Competition in the electric vehicle industry has been intensifying. However, the addressable market is big on a global basis. Lucid Motors has the financial flexibility to pursue aggressive international expansion. The company already has sales and marketing team in regions like Europe and Middle East.

It’s also worth noting that Tesla has witnessed a gradual decline in market share in the last 12 to 24 months. This is a clear indication that new players have been able to make inroads.

For Lucid Motors, technology and innovation is the differentiating factor. While the company is launching with a premium EV, there are plans to enter the mass market in the next few years. This will further help in boosting market share.

Overall, LCID stock looks attractive after a sharp correction in the recent past. Considering the growth plans for 2022 and 2023, I would not be surprised if the stock doubles in the next 12 months.

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

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modelling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.