Lucid Group Inc (LCID) shares surged 11.18% in pre-market trading on Monday, as the electric vehicle maker appears to be capitalizing on rival Tesla's recent struggles. The significant uptick comes amid reports of increasing orders from former Tesla owners and optimistic projections for Lucid's future growth.

According to recent analysis, Lucid has witnessed a dramatic surge in orders from Tesla owners, with nearly half of its current EV vehicle orders coming from this demographic. This shift can be attributed to Tesla's recent challenges, including a 13% slump in vehicle sales during the January-March quarter and growing political backlash against CEO Elon Musk.

Adding to the positive sentiment, Lucid aims to double its vehicle sales in 2025 to 20,000 units, up from 10,000 vehicles sold last year. The company's first-quarter deliveries have already beaten estimates, outpacing the previous year's figures. Moreover, brokers have raised Lucid's average short-term price target by 11.7% to $2.68, with the highest target set at $5, indicating a potential upside of 108.3%.

While Lucid still faces challenges, including negative profit margins and the need to expand its product lineup with more affordable options, today's stock movement suggests that investors are betting on the company's potential to gain market share in the evolving electric vehicle landscape. As Tesla grapples with various issues, Lucid appears well-positioned to capitalize on the opportunity and attract both customers and investors looking for alternatives in the EV market.