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Lordstown Motors shares rose more than 2% in morning trading as Bank of America predicts 50% gain in Lucid, compares EV maker to Tesla and Ferrari.

Lucid Group appears to be on firm footing to become one of the new electric vehicle start-ups that could turn into a real player in the auto market, according to Bank of America.

Analyst John Murphy initiated coverage of the stock with a buy rating, calling the company “the Tesla/Ferrari of new EV automakers” in a note to clients Wednesday.

“Our Buy rating on Lucid Group is predicated on our view that the company is one of the most legitimate among the universe of start-up electric vehicle (EV) automakers and also a relative competitive threat to the universe of incumbent automakers,” the note said.

In addition to designing consumer vehicles, Lucid also supplies key components for Formula E, the highest level fully electric motorsports league. That is what is reminiscent of Ferrari, which is a supplier for Formula 1, Bank of America said.

Lucid is also starting with expensive luxury cars as its initial products, similar to how Tesla began.

Bank of America set a price target of $30 per share for Lucid, which is 58% above where the stock closed Tuesday. The bank said vehicle reservations and progress toward mass production will be key drivers for the stock in the near term.

“A better measure of LCID’s success than near-term financials while the company/industry is still in very early stages will be customer reservation trends (latest estimate of >10k as of June and Dream Edition fully reserved) and progress on start and ramp of production (target for SOP as of June had been 2H:21). Positive developments on both fronts will be necessary for the stock to work, which we generally anticipate,” the note said.

Lucid went public through a SPAC merger in July, making it one of many early stage electric vehicle companies to enter the public markets over the past two years. Some of those companies, including Lordstown Motors and Nikola, have suffered executive changes and falling stock prices as their production plans have proven hard to match.