TLDR:
- Lucid stock fell 6.84% to $2.86 following Trump’s inauguration and energy policy announcements
- Trump plans to remove Biden’s EV mandate that required 67% of new light vehicles to be electric by 2032
- Lucid delivered 3,099 vehicles in Q4, up from 1,734 in prior year, boosted by Gravity SUV launch
- Company faces challenging environment with potential removal of federal EV incentives
- Stock currently has average “Hold” rating from analysts with $3.04 price target
Lucid Group’s stock declined 6.84% to $2.86 on Tuesday following President Trump’s inauguration speech and indication of major changes to U.S. energy and electric vehicle policies. The drop came as the broader market showed mixed performance, with the S&P 500 up 0.3% and the Nasdaq Composite remaining flat.
The President’s announcement of plans to declare a national energy emergency and remove the electric vehicle mandate established by the Biden administration sparked immediate market reaction. The previous mandate had set targets requiring 67% of new light vehicles and 46% of medium vehicles produced in the U.S. to be electric by 2032.

Lucid, currently valued at $9 billion by market capitalization, faces potential headwinds from the expected elimination of federal subsidies and tax rebates for electric vehicle purchases. These changes could particularly impact smaller EV manufacturers still working toward profitability.
The company’s recent fourth-quarter performance showed some positive momentum, with 3,386 vehicles produced and 3,099 delivered. These numbers represented an increase from the 2,391 vehicles produced and 1,734 delivered in the same quarter of the previous year.
The launch of Lucid’s first SUV model, the Gravity, contributed to this growth. The vehicle is expected to become the company’s bestselling model, though its introduction comes at a challenging time for the broader EV industry.
Trading data shows Lucid’s stock moving within a 52-week range of $1.93 to $4.43, with the current price near the middle of this range. The company’s shares have experienced high trading volume, with recent sessions seeing over 66 million shares traded.
Financial metrics reveal some concerns, including a negative gross margin of -132.40%. The company reported fourth-quarter earnings per share of -$0.41, missing analysts’ consensus estimates of -$0.32.
Wall Street’s current stance on Lucid remains cautious, with seven analysts maintaining “Hold” ratings, one issuing a “Buy” rating, and one recommending “Sell.” The average price target stands at $3.04.
Recent institutional activity shows continued interest, with several funds adjusting their positions. Notably, the Public Investment Fund of Saudi Arabia remains Lucid’s majority stakeholder, providing a substantial financial backing for the company.
Lucid maintains a solid balance sheet with a current ratio of 3.71 and a quick ratio of 3.26, though it carries a debt-to-equity ratio of 0.77. The company’s market position is reflected in its beta of 0.94, indicating slightly lower volatility than the broader market.
The company’s revenue reached $200.04 million in the latest quarter, slightly above analyst expectations of $199.50 million. However, Lucid continues to face challenges with profitability, reporting a negative net margin of 406.63%.
Corporate insiders maintain substantial ownership, controlling 61.26% of the company’s stock. Recent insider activity included a major purchase by the Public Investment Fund director of over 374 million shares at $2.59 per share.
Despite current market challenges, Lucid’s cash position and backing from the Saudi Public Investment Fund suggest the company has financial resources to continue operations through the current policy transition period.
The broader impact of the new administration’s energy policies on the EV sector remains to be fully determined, though smaller manufacturers like Lucid may face more immediate challenges than established players.
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