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Another step in Lucid (NASDAQ:LCID) global expansion took place on Oct. 14. The luxury electric vehicle brand opened its first Canadian studio in downtown Vancouver. It’s now ready to take reservations for Canadians eager to plunk down 105,000 CAD for the Lucid Air Pure. As the company takes its show on the road, owners of LCID stock have got to be excited.

Source: Around the World Photos /

“Announcing Canadian pricing and our first retail location in the country in tandem is critical in bringing the Lucid brand to Canada,” said Zak Edson, senior director of sales and service. “This opening is the first of many announcements for locations outside of the U.S. market as we continue our rapid global expansion.”

To succeed in today’s automotive industry, you’ve got to sell your vehicles worldwide. Scale means everything. The latest announcement should help push LCID stock higher in 2022. 

Here’s why.

More Buyers of LCID Stock

Most InvestorPlace readers likely assume that Canadian investors are familiar with California-based Lucid. But unfortunately, that’s not necessarily the case. Out here on Canada’s East Coast, except for the most avid EV fans, Lucid is not a household name.

However, residents of Vancouver, which is often referred to as “Lotus Land,” are likely far more familiar with the brand than people in the rest of Canada. First, Vancouverites have more in common with people in California than they do fellow Canadians in Toronto. It is the whole West Coast vibe and all.  Secondly, British Columbians have the highest EV adoption in North America. 

“B.C. is quickly becoming a leader in the ZEV industry. In 2020, B.C. had the highest uptake of ZEVs in North America. New ZEV sales averaged 9.4% over the year despite the pandemic, and with more British Columbians choosing ZEVs, we’re investing in the supports needed to meet the increasing demand for ZEVs on B.C. roads while moving toward our CleanBC goals,” said Bruce Ralston, minister of energy, mines and low carbon innovation.

The province has some generous EV-related rebates to incentivize residents to go electric. For example, if you buy a battery EV, residents are eligible for a $3,000 rebate off the total price of the purchase. The same $3,000 rebate applies if you buy a hydrogen fuel-cell vehicle (FCEV). If you buy a plug-in hybrid EV, the rebate is $1,500.

No EV Rebate Eligibility for Lucid

To qualify for the rebate, an EV must have a range of at least 85 kilometers (53 miles) and have a manufacturer’s suggested retail price of no more than 55,000 CAD ($44,440).  

In addition, the Canadian government has its own rebate. It will provide a $5,000 rebate for purchasing an EV with an MSRP of no more than 45,000 CAD ($36.4 million). Eligible vehicles include the Hyundai Kona and Chevy Bolt EUV.

Of course, Lucid’s vehicle won’t be eligible for either rebate, but British Columbia buyers can get a $350 rebate for buying a home EV charger. Any workplaces that install an EV charger qualify for a $2,000 rebate. You can be sure entrepreneurs who own businesses will run the purchase of the charger through their company. 

So, British Columbia Lucid buyers won’t be left entirely out and will benefit greatly if they invest in LCID stock as well.

It Helps to Be Rich to Buy LCID Stock

Finally, and most importantly, you have to be wealthy to live in Vancouver. The Urban Reform Institute’s 2021 Dermographia International Housing Affordability study found that Vancouver had the second-most expensive housing market globally, trailing only Hong Kong and ranking ahead of Sydney.  This might be good news for LCID stock, as more Vancouverites might start investing.

In Q3 2021, the average price of a single-family home in Greater Vancouver was 1.65 million CAD ($1.33 million); in the city of Vancouver proper, the average cost for a single-family home was 2.4 million CAD ($1.94 million). So if you can afford a house in Vancouver, you can afford a Lucid Air Pure.   

The company’s first choice to enter Canada is an enlightened and sensible move. It plans to open studios in Toronto and Montreal in 2022. Unfortunately, I doubt Halifax will ever make the cut. 

According to Data USA, the 2019 median income in Los Angeles County was $72,797. The median property value was $644,100. So, in Greater LA, a house costs 8.8x the median household income. In Greater Vancouver, the median household income in the 2016 census was 73,000 CAD ($59,000), which means a house costs 22.6x the median household income. 

On the surface, that would suggest that Vancouver’s too expensive. However, 30% of households in Vancouver have incomes above 100,000 CAD ($80,860), so there is enough wealth to support Lucid sales in the Lower Mainland. 

The Bottom Line

The last time I wrote about Lucid at the end of September, I discussed the pros and cons of redeeming its 41.4 million outstanding public warrants to buy its stock. I concluded that I thought it was a good move because it avoids diluting its existing shareholders. With plenty of cash, it made sense to wipe them off the balance sheet. 

CEO Peter Rawlinson has made several good moves since taking the helm of Lucid in 2016. However, the company’s first vehicles rolling off its Arizona assembly line at the end of September is the most significant accomplishment to date. 

Taking its show on the road is a natural progression in the company’s development. I’m sure Vancouverites will gobble up Lucid’s vehicles in the weeks and months ahead. 

Lucid is a long-term speculative buy for aggressive investors only.

On the date of publication, Will Ashworth 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 Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.