TLDR:
- Lucid stock jumped 5.4% following the launch of its Gravity SUV
- Company aims to double production to 20,000 vehicles in 2026
- Q1 2025 revenue increased 36% year-over-year to $235 million
- Plans for sub-$50,000 mass market models in 2026-2027
- Saudi Arabia’s Public Investment Fund remains a key financial backer
Lucid Group has seen its stock surge as the electric vehicle maker officially begins production of its much-anticipated Gravity SUV. Shares of Lucid (LCID) rose 5.4% on Friday, reaching $2.84 and capping a week of growing investor optimism for the EV manufacturer.
The launch of the Gravity SUV marks a pivotal moment for Lucid. Priced from $79,900, this three-row electric vehicle boasts an impressive 440-mile range, putting it in direct competition with Tesla’s Model X.
CEO Peter Rawlinson described the launch as “a new era” for the company. Until now, Lucid has primarily focused on its ultra-luxury Air sedan.
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 stock jump comes despite a challenging history. Since going public in 2021, Lucid has lost more than 80% of its value.
Financial Performance and Growth Plans
Lucid’s first quarter results for 2025 showed promising signs of growth. The company reported $235 million in revenue, a 36% increase compared to the same period last year.
Vehicle deliveries climbed 58% to 3,109 units. The company posted a loss of $0.24 per share, slightly better than the $0.30 loss recorded in the previous year.
Looking ahead, Lucid has set ambitious production targets. The company aims to manufacture 20,000 vehicles next year.
This would represent a doubling of its 2024 output. The Gravity SUV is expected to account for a major portion of this growth.
Strategic Shift to Mass Market
Lucid’s most exciting developments may still be on the horizon. The company plans to introduce more affordable models in 2026 and 2027.
Unlike the Air and Gravity models, which can cost upwards of $100,000 depending on options, these new vehicles are expected to debut under $50,000.
This strategic shift mirrors Tesla’s successful growth model. Tesla initially created high-priced luxury vehicles before leveraging its reputation to build more affordable options.
A midsize SUV priced around $50,000 is planned for 2026. This vehicle would directly target Tesla’s popular Model Y.
This price point could prove crucial for Lucid’s growth. Crossing the sub-$50,000 threshold helped Tesla’s sales accelerate dramatically.
Lucid’s management team hopes for similar results with their mass-market models. The company’s long-term strategy appears focused on transitioning from exclusive luxury to high-volume production.
Financial Challenges Remain
Despite the positive news, Lucid continues to face financial hurdles. The company still operates at a loss, with thin margins and cash burn concerns.
Analysts remain cautious about Lucid’s prospects. According to TipRanks, the stock holds a “Hold” rating from analysts, with only one “Buy” rating out of eleven total reviews.
The average 12-month price target sits at $2.38, suggesting a potential 16% downside from the current $2.84 share price.
Forecasts range widely from a high of $5.00 to a low of just $1.00, reflecting divided sentiment among market watchers.
Saudi Arabia’s Public Investment Fund continues to provide crucial financial backing. This support gives Lucid the runway needed to execute its strategic pivot to mass-market vehicles.
For Lucid to succeed in bringing its new vehicles to market, it will need substantial additional capital. This may require raising new debt or selling more stock, potentially diluting current shareholders.
The company’s first quarter report showed vehicle deliveries reached 3,109 units, with revenue climbing to $235 million, representing a 36% year-over-year increase.
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