TLDR
- Lucid stock jumped 10.45% to $2.96 per share on Tuesday following a 5.4% rise on Friday
- Company began production of Gravity SUV priced at $79,900 with 440-mile range
- Q1 2025 revenue increased 36% to $235 million with deliveries up 58% to 3,109 vehicles
- Lucid plans to double production to 20,000 vehicles next year, largely driven by Gravity SUV
- Company aims to launch a midsize SUV around $50,000 by 2026, targeting Tesla’s Model Y
Lucid Group’s stock has been on a roll lately, climbing 10.45% on Tuesday to close at $2.96 per share. This came just days after Friday’s 5.4% jump that pushed shares to $2.84. Investors appear to be betting on the electric vehicle maker’s newest offering.
The catalyst for this recent surge? Lucid has officially begun production of its Gravity SUV at its Arizona facility.
This vehicle marks an important step for the company that has previously focused on its ultra-luxury Air sedan. The three-row electric SUV carries a starting price of $79,900 and boasts an impressive 440-mile range.
Today marks an exciting landmark for our company. Production of the Lucid Gravity is now underway at our factory in Arizona!
This milestone is a celebration of the hard work by our passionate and dedicated team to bring this groundbreaking SUV to life. Its combination of space… pic.twitter.com/ItJsOL3H3Y
— Lucid Motors (@LucidMotors) December 5, 2024
CEO Peter Rawlinson called the launch “a new era” for Lucid. The Gravity SUV will compete directly with Tesla’s Model X, offering similar premium features.
The company’s financial results show progress with room for improvement. For Q1 2025, Lucid reported revenue of $235 million, representing a 36% increase year over year.
Vehicle deliveries climbed even more sharply, up 58% to 3,109 units. However, profitability remains elusive.
The company posted a loss of $0.24 per share in Q1, which is slightly better than last year’s $0.30 loss. Its net loss grew to $731 million from $684 million in the same period last year.
Production Ambitions
Lucid has set an aggressive target to ramp up vehicle production. The company aims to build 20,000 vehicles next year, more than double the 9,000 units delivered in 2024.
The Gravity SUV is expected to drive much of this growth. But the question remains whether Lucid can scale up while maintaining quality and improving its financial situation.
Margins remain thin in a competitive luxury EV market. Saudi Arabia’s Public Investment Fund continues to be a crucial backer, providing Lucid with the financial runway to execute its plans.
Looking further ahead, Lucid is planning to launch a midsize SUV around $50,000 by 2026. This vehicle would target Tesla’s popular Model Y, signaling a strategic shift from exclusive luxury to higher-volume market segments.
This move could help Lucid reach more customers, but it also puts the company in direct competition with more established players in a crowded field.
Wall Street analysts remain cautious about Lucid’s prospects. The stock currently holds a Hold rating based on opinions from 11 analysts tracked by TipRanks.
Only one analyst rates Lucid as a Buy, while seven have Hold ratings and three recommend Sell. The average 12-month price target sits at $2.38, suggesting a potential 16% downside from Friday’s close.
Forecasts range widely from a high of $5.00 to a low of just $1.00, reflecting divided sentiment about the company’s future. Tuesday’s stock surge occurred despite broader market pessimism, with major indices finishing in the red.
The recent price action suggests some traders may have taken advantage of previous dips to buy shares at a lower price. The company’s first-quarter deliveries of 3,109 vehicles translated to $235 million in sales.
With production of the Gravity SUV now underway, Lucid’s immediate focus will be ramping up manufacturing and delivering vehicles to customers without delays or quality issues.
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