Lucid Group Inc (LCID) shares skyrocketed 11.18% in pre-market trading on Monday, as the electric vehicle (EV) maker appears to be capitalizing on rival Tesla's recent challenges. The surge comes amid reports of increasing orders from former Tesla owners, signaling a potential shift in the competitive landscape of the EV market.

Tesla, the industry leader, has been grappling with a series of setbacks, including a 13% slump in vehicle sales during the January-March quarter and negative publicity surrounding CEO Elon Musk. These factors have contributed to Tesla's stock plummeting 45% from its mid-December peak. In contrast, Lucid has seen a dramatic surge in orders from Tesla owners, with nearly half of its recent EV vehicle orders coming from this demographic.

Analysts are taking notice of Lucid's growth potential, with brokers raising the average short-term price target for LCID stock by 11.7% to $2.68. The most optimistic target is set at $5, suggesting a potential upside of 108.3%. However, investors should approach with caution, as Lucid still faces challenges in achieving profitability and expanding its production capacity.

As the EV market continues to evolve, Lucid's ability to capitalize on Tesla's missteps and attract disaffected customers could be a game-changer for the company. The coming quarters will be crucial in determining whether Lucid can maintain this momentum and establish itself as a serious contender in the competitive electric vehicle landscape.