Known for its luxurious EV models like its very own Lucid Air, Lucid Group (NASDAQ:LCID) currently faces a mixed bag of analyst reviews. While its advanced technology supports growth, financial and operational challenges pose risks. Amid continued tech selloffs and recession fears, many rightly view LCID stock as a cautious hold in this environment.
That said, the company’s CEO Peter Rawlinson has expressed optimism about Lucid’s sales growth, cost-saving initiatives, and the company’s upcoming Gravity launch. He highlighted the technology’s impressive 5.0 miles per kilowatt-hour efficiency as a testament to their leadership and potential.
Lucid’s CFO Gagan Dhingra also attributed the company’s strong Q2 performance to increased Lucid Air sales and cost reductions. He noted that the $1.5 billion PIF commitment ensures liquidity through at least Q4 2025.
Here’s what you need to know about recent LCID stock price movements and events before considering investing in this stock.
Q2 Missed EPS But Beats Revenue
Lucid Group’s shares surged in July following strong Q2 delivery numbers, with 2,394 vehicles delivered—a 70% year-over-year increase. The stock rose about 4%, hitting roughly its highest level since mid-May. Despite recent gains, Lucid’s shares have fallen 60% over the past year, reaching an all-time low of $2.29 in April due to financial concerns.
Lucid delivered a record 2,394 vehicles in Q2 2024, up 22% from Q1. Production improved as the company was able to build 2,110 models, propelling revenue to hit $200.6 million. This exceeded market forecasts, but a larger expected loss of $0.29 per share ruined the party for many. Still, Lucid has strong liquidity, holding $4.28 billion in cash plus a $1.5 billion funding round from Saudi’s PIF. The recent investment from a Saudi PIF affiliate has boosted support and production of the Gravity SUV. This ensures liquidity through Q4 2025.
Delayed Production of Gravity SUV
According to the company’s management team, Lucid’s Gravity SUV will have a late release in 2024, but it will come with an $80,000 price tag. The prototype recently completed assembly, showcasing advanced tech and design. Lucid’s 2025 Air Pure boasts top efficiency with five miles per kWh and 146 MPGe.
The company claims its technology is unmatched and will continue to reduce EV costs. Lucid’s Air Pure, now starting at $69,900, highlights ongoing interest and future expansion into the mass market with a new midsize SUV planned for late 2026.
Lucid’s earnings report highlighted the upcoming Gravity SUV, set to start production late this year. The seven-seater SUV, with a 440-mile range, will be priced under $80,000, potentially expanding Lucid’s market. CEO Rawlinson also teased a high-volume, low-cost midsized model starting production in late 2026, priced under $50,000.
Despite these developments, Lucid’s current financials show mixed results: revenue rose 10% quarter-over-quarter but missed estimates by $10 million, while R&D expenses increased by 17%.
LCID Stock Remains a Risky Bet
With more than 10% short interest and some significant cash burn, Lucid faces ongoing challenges due to high operating losses and reduced demand. The company cut its Air sedan price by 10% to boost sales but may struggle with sluggish growth amid a broad slowdown in EV demand. Despite efficient battery technology, Lucid’s vehicles lack distinct advantages over competitors, whose features have become more standardized and affordable.
My recommendation is to stay away from Lucid stock, as it may be bought at a discount once its market position stabilizes. Despite rising delivery numbers, Lucid’s $600 million revenue and $7.2 billion market cap suggest high expectations. Analysts predict breakeven profitability won’t be reached until at least FY2028, potentially leading to long-term investor losses.
- Lucid Motors recently obtained $1.5 billion in funding from Saudi Arabia’s PIF.
- The company is shifting its focus from energy storage to prioritize vehicle development.
- LCID’s stock, down 25% over the past year, may drop even further.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
On the date of publication, Chris MacDonald did not hold (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.
