Lucid Group (LCID) Stock: Record-Breaking Drive Fuels 9% Rally

TLDR

Table of Contents

Lucid Group’s Grand Touring Air sedan set a Guinness World Record driving 1,205 km on a single charge, beating the previous record by 160 km
The company reported record Q2 deliveries of 3,309 vehicles, up 38% year over year, driven by new Gravity SUV sales
LCID stock trades at $2.29 with 47% of float sold short, making it one of the most heavily shorted stocks in the US
The company has approximately $3.6 billion in cash with a burn rate giving it about 1.8 years of runway before needing more funding
High short interest of 47% and borrowing costs of 15.7% annually create potential for a short squeeze if positive news shifts sentiment

Lucid Group shares jumped 8.77% to $2.29 on Tuesday following news of a world record achievement and strong quarterly delivery numbers. The luxury electric vehicle maker announced its Grand Touring Air sedan drove 1,205 km on a single charge, setting a new Guinness World Record.

The record-breaking drive exceeded the previous mark by 160 km. This achievement reinforces Lucid’s battery and drivetrain technology advantages in the competitive EV market.

BTFO by nearly 100 miles, buy American
"Lucid managed to push its Air Grand Touring sedan to a distance of 747 miles in July… Previously, the record was set at 649 miles in June 2025 by a Mercedes-Benz EQS 450+" pic.twitter.com/KeF2Ryg1ud
— Peter Holderith (@_baldtires) July 8, 2025

The timing coincides with Lucid’s Q2 2025 production and delivery report. The company produced a record 3,863 vehicles and delivered 3,309 vehicles during the quarter.

This represents a 38% increase compared to the same period last year. The growth comes primarily from sales of the new Gravity SUV model.

The Gravity SUV has proven more popular than the Air sedan with consumers. However, sales still lag behind company targets set earlier.

Short Interest Creates Volatility Risk

Despite the positive operational news, Lucid faces intense market skepticism. The stock carries one of the highest short interest ratios in the US market at 47% of float.

The high short interest stems from fundamental concerns about cash burn and dilution. Lucid has approximately $3.6 billion in cash and short-term investments on its balance sheet.

The company burns through $1.95 billion annually in operating cash flow. This gives Lucid roughly 1.8 years of cash runway at current burn rates.

The borrowing cost to short LCID shares runs 15.7% annually. This steep cost reflects high demand to short the stock despite limited available shares.

The combination of high short interest and borrowing costs creates conditions for potential short squeezes. Any positive news could force short sellers to cover positions rapidly.

Financial Metrics Paint Mixed Picture

Lucid trades at an EV-to-sales ratio of 8.3x, compared to the industry average. This valuation appears high given current production levels and cash burn concerns.

The company has grown shares outstanding by 83% over four years. Lucid raised $6.53 billion from equity sales during this period.

Operating cash flow burned through $7.79 billion over the same timeframe. The stock has declined 96% from its 2021 peak near $60 per share.

Saudi Arabia’s Public Investment Fund owns 73% of Lucid Group. The sovereign wealth fund provides financial backing and strategic support for expansion.

Lucid operates a manufacturing plant in King Abdullah Economic City, Saudi Arabia. The facility has initial capacity for 5,000 vehicles annually.

Plans call for expanding Saudi production to 155,000 units by decade’s end. The Saudi government has agreed to purchase up to 100,000 vehicles from Lucid.

Of seven analysts covering the stock, six rate it neutral and one bearish. None maintain buy ratings on LCID shares.

The average price target stands at $2.38, implying 14% upside from current levels. Consensus revenue expectations reach $2.74 billion for 2026, compared to $870 million in the last twelve months.

Lucid continues developing a mid-sized model expected by late 2026. The new vehicle could expand the company’s addressable market beyond luxury buyers.

The company’s current market capitalization stands at $7 billion despite trading near $2.29 per share. Tuesday’s trading volume reached 1.1 million shares against an average of 129.7 million shares.

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