After a bruising 2023, investors of electric vehicle manufacturer Lucid Group (NASDAQ:LCID) deserve a break from the losing streak. The LCID stock outlook is unclear, and I’m not sending out a definitely buy signal. However, if you have an appetite for risk, a tiny share position in Lucid Group could be a surprising winner in 2024.
Just remember to have an exit plan, as even the most beaten-down stocks can still continue to lose value unless they’re at zero. So, put on your seat belt and get ready for a fast-paced, go-for-broke ride with highly speculative Lucid stock.
Could a New SUV Model Catalyze LCID Stock?
Lucid Group’s flagship EV model is the Lucid Air, but all eyes are on the company’s upcoming SUV, known as Gravity. This new vehicle model is expected to be available in late 2024.
Lucid’s shareholders really need to keep tabs on Gravity’s progress. If it’s a best-seller, there’s at least a chance that LCID stock could finally turn around.
As you would expect, Gravity will be luxurious but also powerful, with a “projected range in excess of 440 miles.” And here’s some good news: Car & Driver gave the 2025 Gravity prototype a positive review.
The Car & Driver reviewer seemed to like Gravity’s handling/”roadholding” and spacious interior. “Overall, we came away impressed with even the raw prototype,” the reviewer summarized. While a positive review doesn’t mean Gravity will be a strong revenue generator for Lucid Group, it’s still a green flag that’s worth mentioning.
Lucid Group’s Deal With a Famous Luxury Brand
There’s no doubt that Lucid Group appeals to luxury-seeking drivers. In that vein, Lucid just struck a deal with a well-known luxury brand, Saks Fifth Avenue.
This is a positive development because it could provide Lucid Group with exposure to a well-heeled crowd of car buyers. Through this partnership, Saks Fifth Avenue “will offer exclusive demo drive experiences” of the Lucid Air “at select Saks Fifth Avenue store locations.”
In addition, Saks Fifth Avenue is providing visibility to the Lucid Air through its digital channels. Lucid Group CEO Peter Rawlinson remarked, “The collaboration brings the Lucid brand directly to Saks clientele searching for fine craftsmanship and innovation that seamlessly blend into their lifestyle, such as can be found with the Lucid Air.”
The lineup of Lucid Air vehicles starts at $77,400, so these aren’t economy cars, by any means. Yet, that’s the whole point. Lucid Group is unmistakably a lifestyle and prestige brand. These vehicles are meant to be admired and shown off. Perhaps the Saks Fifth Avenue tie-in can expose Lucid’s brand to the automaker’s upscale target demographic.
LCID Stock Outlook: Big Gamblers Can Try a Small Position
My LCID stock outlook doesn’t call for a moonshot in 2024. The outlook is entirely unknown, and Lucid Group’s shareholders might lose more money in the short term.
On the other hand, I’ve brought you some pieces of positive news and maybe a sense of hope for a turnaround. The Gravity SUV model might eventually be Lucid Group’s saving grace.
So, keep an eye out for fresh developments with Gravity and with Lucid Group’s Saks Fifth Avenue partnership. And, if you’re a gambler, feel free to take a small-sized position in Lucid stock.
On the date of publication, David Moadel 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.
