Tesla rival Lucid jumps 16% as it begins production on its Air luxury electric sedan and says deliveries will start in October

• Lucid stock gained as much as 16% Wednesday as the EV maker began producing its first vehicles.
• The Air Dream luxury sedan rolled off the company's Arizona assembly line on Tuesday.
• The Tesla rival will begin delivering vehicles in late October.

Lucid stock jumped Wednesday after the company said it has started producing its flagship electric sedan and will start delivering vehicles to customers late next month.

The first Lucid Air vehicles rolled off the assembly line in Casa Grande, Arizona, the company said late Tuesday. The first vehicle in its lineup is Air Dream. The limited-edition sedan has a price tag of $169,000 and an EPA-determined range of 520 miles on a single charge, which Lucid said is more than 100 miles over its closest competitor. Tesla's flagship Model S Long Range Plus has an EPA-rated range of 402 miles.

Lucid stock gained as much as 15.7% to $28.39 before paring the rise to 10%. Shares have more than doubled from around $10 at the start of 2021.

Lucid, which Bank of America recently called the next Tesla or Ferrari of EV makers, said Air Dream reservation holders will begin receiving their cars in late October. Deliveries of Grand Touring, Touring, and Air Pure models will follow.

More than 13,000 reservations for Air vehicles have been placed, and the company plans to increase the total production of Dream vehicles to 520 units. In July, the company said it had more than 10,000 Air vehicle orders.

California-based Lucid has also started expanding its factory in Arizona to add 2.85 million square feet which will support the production of its Gravity SUV as well as increased Air production.