Lucid Group (LCID) Stock: Can New SUV Turn Around Struggling EV Maker?
TLDR
Lucid delivered 3,109 vehicles in Q1 2025, marking a 58% increase and sixth consecutive quarter of record deliveries
The company’s new Gravity SUV targets a market six times larger than its Air sedan, with analysts predicting 73% sales growth in 2025
CEO Peter Rawlinson stepped down after 12 years, creating leadership uncertainty following a $400 million Q4 loss
Former Tesla customers are switching to Lucid as Tesla faces political backlash from CEO Elon Musk’s involvement in politics
Saudi Arabia’s Public Investment Fund owns roughly 60% of the company, providing funding but creating dependency risks
Lucid Group continues to post strong delivery numbers even as questions swirl around its leadership changes. The electric vehicle maker delivered 3,109 vehicles during the first quarter of 2025. This represents a solid 58% jump compared to the same period last year.
The delivery figure marks the sixth straight quarter of record performance for Lucid. This streak comes as the company ramps up production of its newest vehicle. The Gravity SUV launched in late 2024 and targets mainstream consumers.
The timing appears fortunate for Lucid. Tesla has faced consumer pushback due to CEO Elon Musk’s political activities. Lucid’s interim CEO Marc Winterhoff noted a sharp increase in orders from former Tesla drivers in recent months.
Market Opportunity Expands
The Gravity SUV represents a major opportunity for Lucid. Industry analysts estimate the SUV market is six times larger than the sedan segment where Lucid’s Air model competes. This expanded addressable market could drive substantial growth.
Wall Street expects strong performance ahead. Analysts predict Lucid’s sales will increase 73% in 2025. They forecast another 96% jump in 2026 compared to prior years.
The company has been building inventory for employees and test driving purposes. Now Lucid can focus on accelerating production for regular customers. This production ramp could boost delivery numbers further.
Tesla’s first-quarter automotive sales dropped 20% year over year. Consumer boycotts and political backlash related to Musk have hurt the company. This creates an opening for Lucid in the luxury electric vehicle space.
Leadership Changes Create Uncertainty
However, Lucid faces challenges beyond market dynamics. CEO Peter Rawlinson stepped down after leading the company for 12 years. The departure came after Lucid reported a nearly $400 million fourth-quarter loss.
Company management tried to downplay the leadership change. But analysts expressed concerns about the impact. They worry product development could stall under new leadership.
Consumer demand might also face pressure from the CEO transition. Additional funding opportunities could become more difficult to secure. These factors create uncertainty for investors considering the stock.
Lucid burns through cash at a rapid pace. The company used $692 million in the first quarter alone. This cash burn continues despite revenue growing 36% year over year to $235 million.
The company relies heavily on outside funding sources. Saudi Arabia’s Public Investment Fund owns roughly 60% of Lucid through multiple investments. While this provides access to capital, the dependency creates risks.
Should Saudi’s PIF reduce support, it would create problems for Lucid. The stock would face pressure and accessing alternative funding would become more expensive.
Lucid trades at a price-to-sales ratio of 6.7 based on expected 2025 revenue of $1.4 billion. Tesla carries a P/S ratio of 11 for comparison. The stock price sits at $2.22 with a market cap of $6.77 billion.
Shares have fallen 96% from their 2021 high of $58. Early investors have been nearly wiped out by the decline. Post-pandemic inflation and rising interest rates hurt demand for expensive electric vehicles.
The company plans to launch a midsize platform with more affordable pricing around $50,000. This could expand Lucid’s market reach beyond luxury buyers. The platform will underpin multiple models at lower price points.
Trump’s proposed legislation could benefit smaller EV makers like Lucid. The “One Big, Beautiful Bill” might remove the $7,500 EV tax credit but exempt smaller players. However, this legislation remains under Congressional review with no final decision.
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Filed under: News - @ June 25, 2025 9:29 am