Lucid Group (LCID) Stock: 6% Jump Sparks Investors Interest in Beaten-Down EV Name

TLDR

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Lucid Group (LCID) stock traded up 6% on Monday, closing at $2.23 after reaching an intraday high of $2.27
The company reported Q1 earnings with revenue of $235.05 million, up 36.1% year-over-year, but missed analyst estimates
Lucid plans to unveil three new mid-sized vehicles priced under $50,000 in late 2025 or early 2026
The Gravity SUV is gaining traction with 75% of orders coming from new customers to the Lucid brand
Analysts expect 73% sales growth in 2025 and 96% growth in 2026, primarily driven by Gravity SUV momentum

Lucid Group shares jumped 6% during Monday’s trading session, closing at $2.23 after touching an intraday high of $2.27. The stock moved higher on volume of 54.5 million shares, down 30% from the average daily volume of 77.7 million shares.

The electric vehicle manufacturer has faced a challenging year with shares down roughly 30% since the start of 2025. Trading volumes remain elevated as investors weigh the company’s path forward in an increasingly competitive EV market.

Lucid reported first-quarter earnings results on May 6th, posting a loss of $0.24 per share compared to analyst estimates of $0.23. The company generated revenue of $235.05 million for the quarter, falling short of the $250.50 million analyst consensus.

Despite missing revenue expectations, Lucid showed strong year-over-year growth with sales up 36.1% compared to the same period last year. The company posted a loss of $0.27 per share in the prior year quarter.

The stock currently trades with a market capitalization of $6.56 billion and maintains a beta of 0.81. Lucid’s fifty-day moving average sits at $2.44 while the two-hundred-day moving average is $2.59.

New Model Lineup Could Transform Business

Management has been teasing the unveiling of three new mid-sized vehicles, all priced under $50,000. This represents a major shift for Lucid, which has focused primarily on luxury vehicles to date.

CEO Marc Winterhoff expressed enthusiasm about the upcoming models during the last earnings call. He described seeing the vehicles in the design studio and called them “amazing.”

The company plans to unveil these mass market vehicles in late 2025 or early 2026. Production is expected to begin in late 2026, marking Lucid’s first attempt to compete in the affordable EV segment.

Former CEO Peter Rawlinson previously called the mass market vehicles a “landmark product.” He stated they would allow Lucid to “compete directly with Tesla” for the first time.

The pricing strategy mirrors Tesla’s successful approach with the Model 3 and Model Y. These two affordable models now account for more than 90% of Tesla’s vehicle sales.

Gravity SUV Shows Early Promise

Lucid launched its Gravity SUV platform earlier this year, targeting one of the largest segments in the passenger vehicle market. Initial rollout faced some software-related challenges that have since been addressed.

Lucid Gravity sets a new standard for what an SUV can be.
Power, precision, and versatility for whatever the road brings. Transition effortlessly from scenic roads to the unexpected adventures. pic.twitter.com/S2vUCWkRp3
— Lucid Motors (@LucidMotors) April 16, 2025

The SUV appears to be attracting both existing Lucid customers and new buyers to the brand. Three-quarters of Gravity orders are coming from customers who have never purchased a Lucid vehicle before.

Tesla’s Model X serves as the Gravity’s primary competitor in the luxury electric SUV space. Tesla sells approximately 4,000 Model X vehicles per quarter compared to just 50 Gravity units sold by Lucid last quarter.

Analysts project strong growth for Lucid based largely on expected Gravity sales momentum. Wall Street expects 73% sales growth in 2025 followed by another 96% increase in 2026.

The institutional ownership picture shows continued interest from large investors. Renaissance Technologies increased its stake by 342.7% in the fourth quarter, now holding 16.5 million shares worth nearly $50 million.

Norges Bank established a new $9.4 million position in the stock during the same period. Two Sigma Investments expanded its holdings by over 4,000% to 15.8 million shares.

Analyst sentiment remains mixed with two sell ratings, eight hold ratings, and two buy ratings. The consensus price target stands at $2.68, representing potential upside from current levels.

Bank of America downgraded the stock from neutral to underperform in February, cutting its price target from $3.00 to $1.00. TD Cowen initiated coverage with a hold rating and $2.30 price target in March.

Current trading metrics show Lucid maintains a debt-to-equity ratio of 0.77 with a current ratio of 3.71. The company reported a negative return on equity of 74.67% and negative net margin of 406.63% in the most recent quarter.

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