LCID's Gravity SUV a New Choice for TSLA Fans: Bet on CHPT Stock Now?

Trading volumes of Lucid Group Inc. LCID stock were higher in the last trading session than in the previous few days. The electric vehicle (EV) maker has been in the limelight for grabbing customers from Tesla, Inc. TSLA following the launch of its new Gravity SUV in showrooms.

Are Tesla Buyers’ Interests Shifting to Lucid?

Beginning this month, LCID will be delivering the product to a broad range of customers. In an interview with Yahoo Finance, Lucid's interim CEO, Marc Winterhoff, highlighted that there has been an increased interest from Tesla customers for its Gravity SUV and Air sedan. The reasons for the switch in customers’ interests are possibly the brand issues currently impacting TSLA.

Lucid Group is mostly a U.S.-focused manufacturing company and is immune to President Donald Trump’s 25% tariffs on foreign cars, that is set to take effect on April 2.

Will Fast Charging Demand Rise as EV Market Expands?

With customers having more alternatives like LCID, the claim that TSLA is the only major EV player is no longer a valid proposition. Thus, with the rising competition in the EV space, the demand for fast charging will likely increase. Also, the Gravity SUV looks appealing to customers, which in turn boosts demand for fast charging as SUVs typically demand longer charging times.

Time to Bet on CHPT?

In the EV charging space, ChargePoint CHPT is among the leading players and has been investing in improving charging infrastructures that will aid it in staying competitive. Along with a large network of charging stations that charge both cars and trucks, the company offers technologies that include smart chargers.

Thus, as the EV market gets more competitive and SUV demand increases, mounting fast charging demand is paving the way for ChargePoint to gain momentum. Notably, CHPT has witnessed upward estimate revisions for its bottom line for fiscal years 2026 and 2027 over the past 30 days.

Also, the stock is currently considered relatively undervalued, trading at a trailing 12-month price to sales (P/S) of 0.65x. This figure is below the broader industry average of 1.84x.

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Thus, with the business environment remaining favorable and CHPT remaining undervalued, investors should bet on the stock right away. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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