Though the electric vehicle (EV) sector generated news for the wrong reasons lately, Lucid Group (NASDAQ:LCID) sparked some forward-looking optimism in the space with news regarding its latest Gravity SUV. Moving into the next development phase, the new EV is now testing on public roads throughout the U.S. Filled to the brim with exciting features and attributes, and management hopes that Gravity will lift LCID stock from the doldrums.
According to the company’s latest press release, the Lucid Gravity SUV features design and engineering elements to “…serve nearly any lifestyle or need, with a previously unheard-of combination of spaciousness, performance, and driving range.” Most noticeably, this luxury platform will offer “comfortable” seating for up to seven adults and their cargo.
In addition, Lucid claims that the Gravity will feature the driving dynamics of a sports car and, more importantly for the average consumer, a greater electric range than any competing SUV on the market today. As well, “[t]he Lucid Gravity will also introduce new Glass Cockpit high-resolution displays, powered by the next generation of Lucid UX, Lucid’s intuitive and elegant software interface.”
“I am excited to see the Gravity SUV moving forward so quickly in its development, as it builds upon everything this company has achieved thus far and drives further advancements of our in-house technology to create a luxury electric SUV like none other,” said Lucid CEO and chief technology officer Peter Rawlinson.
LCID Stock Still Faces Tough Challenges
While the Gravity may help profitably distinguish the Lucid brand over rival Tesla (NASDAQ:TSLA), its anticipation has not been able to defy the negative energy that the broader EV sector emits recently. On Tuesday, LCID stock slipped almost 4% against broader concerns regarding disappointing corporate earnings results.
For the EV sector specifically, brewing pricing wars cloud the narrative for practically every EV maker. With Tesla aggressively cutting its prices since the beginning of this year, competitors may be forced to respond. For instance, EV startup Rivian Automotive (NASDAQ:RIVN) — which also specializes in higher-end vehicles — suffered around a 31% loss on a year-to-date basis.
Since the start of January, LCID stock gained about 9%. However, in the trailing month, it slipped more than 17%, reflecting significant pressure for the industry.
On the positive front, Lucid carries the advantage of credibility. According to Car and Driver, the Lucid Air Grand Touring sedan featured the best range of any EV the magazine put through its 75-mile-per-hour fuel-economy test. Plus, the automotive journalists discovered it could add up to 300 miles of range in just over 20 minutes when plugged into a fast charger.
In other words, when Lucid publishes its marketing materials, they’re not just fluff pieces. Independent sources confirm the company’s engineering prowess. Still, whether that carries LCID stock forward in this environment remains an open question.
Why It Matters
Despite volatility in the EV space, Lucid still carries an overall optimistic view among Wall Street analysts. Pegging LCID stock a consensus moderate buy, their average price target is $9.92, implying over 47% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.