Lucid Group Inc. LCID 23.71% became the latest electric-vehicle startup to top automotive icon Ford Motor Co. F -0.35% in market value, another example of how investor enthusiasm is intensifying for car companies that shun gasoline.
Stock in Lucid, a maker of high-end electric cars, jumped nearly 24% Tuesday to close at $55.52 a share, following the Monday release of its first financial results as a public company. The rally pushed the company’s valuation to $89.3 billion, surpassing that of Ford F -0.35% for the first time since Lucid’s debut on the public markets over the summer.
Lucid also edged closer to General Motors Co. , which at Tuesday’s close was worth about $91 billion.
Company executives provided an upbeat outlook for the upstart car manufacturer on an analysts call Monday, highlighting an increase in reservations for its first model, the Lucid Air, and plans to expand its manufacturing output at its factory in Arizona.
The Newark, Calif., startup reported a net loss of $524 million for the third-quarter, in part due to higher costs associated with starting vehicle production in late September and increasing its employee head count for sales and service operations. It said it had raised $4.4 billion from a reverse merger deal that took it public in the summer and had enough cash to ramp up operations through 2022.
Also on Monday, car enthusiast magazine MotorTrend gave the Lucid Air its prestigious Car of the Year award, saying it was the first time a debut model from a new car company has ever received the accolade.
Lucid’s rising market valuation comes as other automotive startups are emerging to challenge the traditional car companies in the race to dominate the future of the automobile.
Rivian Automotive Inc., another new electric-vehicle maker focused on trucks and SUVs, went public last week with a market value that quickly overtook Ford’s and has since exceeded that of GM. Valued at about $149 billion at Tuesday’s close, Rivian’s worth has also topped that of German auto-making giant Volkswagen AG .
A spokesman said Ford’s strategic plan, outlined in May, has positioned the company to emerge as a leader on electric vehicles. The company recently committed $7 billion for three new battery factories, in Tennessee and Kentucky, along with a plant to build electric pickup trucks, part of $30 billion in electric-vehicle investment planned through 2025.
“Markets are efficient over time,” he said. “We expect to create great value for customers and all our stakeholders.”
Rivian raised $13.7 billion in all from its offering, a haul that is among the largest for a U.S. public listing. Its stock has continued to rise, up more than 120% from the $78 IPO price, as of Tuesday’s close.
Lucid Chief Executive Peter Rawlinson said the enthusiasm around Rivian’s debut is an important endorsement for some of the challenger brands and the prospects for electric vehicles overall.
“A rising tide raises all boats,” said Mr. Rawlinson, in an interview. “We can co-exist very comfortably,” he said, of sharing the marketplace with Rivian.
Under Chief Executive Jim Farley, who took over last year, Ford has generated electric-vehicle buzz of its own. Its Mustang Mach-E electric SUV, a competitor to the Tesla Model Y, has received critical praise. Ford has more than 160,000 nonbinding orders for its electric F-150 Lightning pickup truck, scheduled to go on sale this spring.