Latest news with #GravitySUV
Yahoo
10 hours ago
- Automotive
- Yahoo
With Growth Poised to Explode, Is Lucid Stock Finally a Buy?
Lucid has posted six consecutive quarters of record deliveries. Analysts expect the electric vehicle maker's sales to nearly double next year. Lucid's future growth will be driven by a selection of models on a midsize platform. 10 stocks we like better than Lucid Group › Lucid Group (NASDAQ: LCID) appears to be one of the benefactors of Tesla's recent stumble and fall. Lucid management noted an uptick in customers trading in their Teslas for a possibly less politically charged ride. And while the broader U.S. electric vehicle (EV) industry is struggling to grow as many anticipated, Lucid has set itself up extremely well for growth over the coming year. But does all this make it a buy finally? Let's find out. The broader EV industry might be sputtering right now, and investors might be grappling with the impact of tariffs, but Lucid has been on fire, in a good way. Lucid delivered 3,109 vehicles during the first quarter, a solid 58% jump compared to the prior year. It marked the sixth straight quarter for record deliveries, and it comes right on the cusp of Lucid accelerating production and deliveries for its most recent launch, the Gravity SUV. Lucid had only recently become satisfied with producing all the inventory needed for employees, studios, and test driving, and can now accelerate production for mainstream consumers. For investors who have grown accustomed to Lucid's strong delivery performance after years of disappointments, the good news is that the Gravity SUV should easily drive the company's results going forward. In fact, the Gravity SUV is estimated to have a market size six times that of Lucid's Air sedan. Analysts expect Lucid sales to increase 73% in 2025 and another 96% jump in 2026 compared to prior years. That's not even taking into account the upcoming midsize platform that will underpin numerous models at a more affordable price tag. Lucid's surge also comes at a good time as once-dominant EV player Tesla is facing consumer backlash due to CEO Elon Musk's brief stint in politics, which has resulted in the downward spiral of sales in key markets. In fact, Lucid's interim CEO, Marc Winterhoff, even noted there was a dramatic uptick in recent months in orders from former Tesla drivers. With momentum seemingly in Lucid's corner in the near-term, despite a stagnating U.S. EV market, it might look like a good time for long-term investors to jump in. But there are a few things to consider. The first red flag came after reporting a near $400 million fourth-quarter loss when the EV maker announced that CEO Peter Rawlinson, who led the company for 12 years, would be stepping down. Lucid did its best to downplay the situation, but analysts weren't buying it, going as far to say product development could stall, consumer demand could be dampened, and additional funding opportunities could be at risk. It's also true that one of the biggest risks facing Lucid investors is the company's access to funding. The young company is rapidly burning through cash; its shareholder dilution is accelerating; and Saudi Arabia's Public Investment Fund (PIF) owns roughly 60% of Lucid through multiple investments throughout the company's life. On one hand, this is a substantially well-funded partner that gives Lucid access to much needed capital. On the other hand, being so reliant on one investor is never a good thing. Should Saudi's PIF pull support, it would be a massive overhang on the stock and make accessing funding more challenging and expensive. Ultimately, for as much momentum and potential as Lucid has, , there's too much uncertainty facing the company right now for most investors to buy in. The company needs to find the right leadership to lead the company and reassure investors. It also needs to reduce its cash burn while improving scale and margins. Plus, it needs to navigate potential industry supply disruptions, broader EV demand decline, and potential price increases due to tariffs. Lucid needs to execute the production ramp of the Gravity SUV and have it be a hit with consumers. If Lucid does all of those things, then it might be time to buy before the company goes into its next growth phase driven by a new midsize platform and more affordable price tag of around $50,000. Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. With Growth Poised to Explode, Is Lucid Stock Finally a Buy? was originally published by The Motley Fool
Globe and Mail
11 hours ago
- Automotive
- Globe and Mail
With Growth Poised to Explode, Is Lucid Stock Finally a Buy?
(NASDAQ: LCID) appears to be one of the benefactors of Tesla 's recent stumble and fall. Lucid management noted an uptick in customers trading in their Teslas for a possibly less politically charged ride. And while the broader U.S. electric vehicle (EV) industry is struggling to grow as many anticipated, Lucid has set itself up extremely well for growth over the coming year. But does all this make it a buy finally? Let's find out. Setting records The broader EV industry might be sputtering right now, and investors might be grappling with the impact of tariffs, but Lucid has been on fire, in a good way. Lucid delivered 3,109 vehicles during the first quarter, a solid 58% jump compared to the prior year. It marked the sixth straight quarter for record deliveries, and it comes right on the cusp of Lucid accelerating production and deliveries for its most recent launch, the Gravity SUV. Lucid had only recently become satisfied with producing all the inventory needed for employees, studios, and test driving, and can now accelerate production for mainstream consumers. For investors who have grown accustomed to Lucid's strong delivery performance after years of disappointments, the good news is that the Gravity SUV should easily drive the company's results going forward. In fact, the Gravity SUV is estimated to have a market size six times that of Lucid's Air sedan. Analysts expect Lucid sales to increase 73% in 2025 and another 96% jump in 2026 compared to prior years. That's not even taking into account the upcoming midsize platform that will underpin numerous models at a more affordable price tag. Lucid's surge also comes at a good time as once-dominant EV player Tesla is facing consumer backlash due to CEO Elon Musk's brief stint in politics, which has resulted in the downward spiral of sales in key markets. In fact, Lucid's interim CEO, Marc Winterhoff, even noted there was a dramatic uptick in recent months in orders from former Tesla drivers. Is Lucid a buy now? With momentum seemingly in Lucid's corner in the near-term, despite a stagnating U.S. EV market, it might look like a good time for long-term investors to jump in. But there are a few things to consider. The first red flag came after reporting a near $400 million fourth-quarter loss when the EV maker announced that CEO Peter Rawlinson, who led the company for 12 years, would be stepping down. Lucid did its best to downplay the situation, but analysts weren't buying it, going as far to say product development could stall, consumer demand could be dampened, and additional funding opportunities could be at risk. It's also true that one of the biggest risks facing Lucid investors is the company's access to funding. The young company is rapidly burning through cash; its shareholder dilution is accelerating; and Saudi Arabia's Public Investment Fund (PIF) owns roughly 60% of Lucid through multiple investments throughout the company's life. On one hand, this is a substantially well-funded partner that gives Lucid access to much needed capital. On the other hand, being so reliant on one investor is never a good thing. Should Saudi's PIF pull support, it would be a massive overhang on the stock and make accessing funding more challenging and expensive. Ultimately, for as much momentum and potential as Lucid has, , there's too much uncertainty facing the company right now for most investors to buy in. The company needs to find the right leadership to lead the company and reassure investors. It also needs to reduce its cash burn while improving scale and margins. Plus, it needs to navigate potential industry supply disruptions, broader EV demand decline, and potential price increases due to tariffs. Lucid needs to execute the production ramp of the Gravity SUV and have it be a hit with consumers. If Lucid does all of those things, then it might be time to buy before the company goes into its next growth phase driven by a new midsize platform and more affordable price tag of around $50,000. Should you invest $1,000 in Lucid Group right now? Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Yahoo
14-06-2025
- Automotive
- Yahoo
Trump's Bill Would End EV Subsidies: Could That Bankrupt Lucid Group?
Lucid Group has limited capital and is burning through its cash rapidly. Eliminating EV tax credits could affect Lucid's competitiveness. 10 stocks we like better than Lucid Group › Lucid Group (NASDAQ: LCID) is growing its electric vehicle (EV) sales rapidly right now. In 2025, analysts expect its revenues to jump by 73%, and in 2026, they anticipate an even faster growth rate approaching 100%. There's just one problem: Included in Trump's "One Big Beautiful Bill" is a provision that would eliminate the federal tax credits for electric vehicles. That would effectively raise the prices of EVs by $4,000 to $7,500 -- a huge potential blow to demand. When you look at the numbers, things could quickly get ugly for Lucid. But there's also some reason for hope. Lucid's sales growth over the next couple of years will primarily be driven by its recently introduced Gravity SUV. Previously, the company only offered its Air sedan, which ranged in price between $70,000 and around $100,000 depending on the configuration. SUVs, however, are much more popular than sedans in the U.S. right now. Long term, however, it will be critical for Lucid to develop some mass-market vehicles, which are typically priced under $50,000. Tesla's two mass-market models -- the Model 3 and Model Y -- currently account for more than 90% of its unit sales. Such vehicles bring scale to sales growth, but also to operational leverage, which is immensely beneficial to profitability. If the U.S. eliminates federal EV tax incentives, having more affordable vehicles in its lineup will be crucial to Lucid's growth and stability. While the company has previously teased plans to launch several new mass-market models in 2026, details about those potential EVs have been scarce. Plus, it takes billions of dollars to get a new EV model to market. With less than $2 billion in cash on its books, Lucid will likely need to tap the credit and equity markets again before these vehicles launch. Over the past 12 months, it booked a net loss of $3.8 billion. This all puts Lucid in a tight spot. It needs to get mass-market vehicles on the road to boost sales, scale, and profitability. But it will need more capital to do that, and if Trump and the Republicans in control of Congress end the federal EV tax credit, that could lead investors to pull back from the space, limiting Lucid's ability to easily raise capital. That would not be a good position for an early stage, capital-intensive business to find itself in. But could the elimination of EV tax credits actually end up helping Lucid in the long term? There's a case to be made that ending the EV tax credit could eventually benefit Lucid. Demand for EVs would likely take a hit over the short term as the real costs to consumers rise, but if Lucid can get its affordable models to market on schedule, that could mitigate some of the impact. Meanwhile, competitors that fail to introduce mass-market EVs could struggle to maintain market share, giving Lucid more room to grow. I'm skeptical of this optimistic view. Lucid is far behind competitors like Rivian and Tesla in terms of both financing and the ability to launch additional affordable vehicles. The recent departure of its longtime CEO may put even more strain on its ability to raise capital. In terms of publicly traded EV companies, Lucid arguably has the most to lose due to its diminutive size and limited lineup. Will Trump's bill cause Lucid to go bankrupt? Not immediately. But the company has been relatively quiet about its plans for new mass-market EVs, and it could be years before its production scales meaningfully. That leaves it with a limited lineup of high-priced vehicles -- not an ideal situation when achieving scale will require it to provide affordable options. Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Trump's Bill Would End EV Subsidies: Could That Bankrupt Lucid Group? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
08-06-2025
- Automotive
- Yahoo
Lucid Group (NasdaqGS:LCID) Welcomes Douglas Grimm To Board Of Directors
Lucid Group recently elected Douglas Grimm as a new board member, signaling a shift towards using his extensive automotive experience. During the last quarter, Lucid's stock price remained essentially flat. This stability came amid several positive developments such as leadership appointments and expansion efforts, including the opening of a new facility in Rutherford, N.J., all aimed at enhancing operational capabilities. However, these corporate moves were generally aligned with broader market trends, as major indexes also showed momentum, which reflects strong investor optimism initiated by solid U.S. employment data and easing concerns around tariffs. We've identified 2 weaknesses for Lucid Group (1 shouldn't be ignored) that you should be aware of. Uncover the next big thing with financially sound penny stocks that balance risk and reward. The recent appointment of Douglas Grimm to Lucid Group's board is poised to influence both strategic direction and investor sentiment. With the opening of a new facility in Rutherford and Grimm's automotive expertise, Lucid aims to bolster its operational capabilities. Over the last year, Lucid shares experienced a 24% decline, underperforming both the US market, which gained 11%, and the US Auto industry, which rose 47.3%. This extended downturn frames the ongoing challenges Lucid faces despite recent stable quarterly performance. Lucid's revenue forecasts are tied to its Gravity SUV launch, expected to drive significant revenue growth. The current revenue projection shows an annual increase of 41.4%, outpacing the general market's growth forecast of 8.6%. However, challenges like production constraints and potential regulatory impacts could hinder revenue and earnings projections if not addressed efficiently. The projected revenue and earnings enhancements suggest a potential financial recovery, though profitability remains elusive in the next three years. Despite a stable share price in the last quarter, Lucid's current price target stands slightly lower than its trading price of US$2.56, with analysts targeting US$2.53. This marginal difference suggests that on average, analysts see the company as being fairly valued at present. Investors will likely watch how Lucid navigates anticipated growth and industry challenges, which will play a critical role in achieving long-term revenue targets and aligning with the analyst price projections. In light of our recent valuation report, it seems possible that Lucid Group is trading beyond its estimated value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:LCID. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-06-2025
- Automotive
- Yahoo
A Little Bad News for Rivian and Lucid
Survey results suggest cooling sentiment toward EVs. Consumers still hesitate when it comes to price and public charging infrastructure. The Trump administration is currently trying to pull back support for EVs. 10 stocks we like better than Rivian Automotive › Rivian (NASDAQ: RIVN) and Lucid Motors (NASDAQ: LCID) entered 2025 in different gears. Rivian was entering a year with no major vehicle launch, stagnating deliveries, and a lack of any visible catalysts, while Lucid has strung together six consecutive quarters of record deliveries and is ramping the production of its new Gravity SUV. One thing they both have in common is a growing, albeit more slowly than hoped, electric vehicle (EV) market. Here's the bad news: Some recent data says that the EV market sentiment looks to be souring. Tesla changed the game when it made EVs "cool" for the first time. Since then, the hype surrounding EVs as the future of transportation has swept the globe, in some countries (like China) faster than in others. But according to a recent survey, that hype could be in decline in the U.S. Interest in EVs spiraled to its lowest level since 2019, according to a consumer survey commissioned by AAA. Only 16% of respondents reported being "likely" or "very likely" to purchase an EV as their next vehicle, signaling consumer caution. The percentage of respondents who indicated they would be "unlikely" or "very unlikely" to purchase an EV as their next vehicle jumped from 51% to 63%, the highest mark since 2022. The percentage who believe that most cars will be electric within the next decade fell from 40% in 2022 to 23% this year. Not only is interest in EVs down, there's also the lingering pessimism surrounding battery repair costs, total costs, and charging infrastructure -- a story as old as EVs themselves. More specifically, 62% of respondents noted high battery repair costs as a main reason for avoiding going electric, while purchase price was cited by 59% of respondents. The hesitation when it comes to purchase price is understandable. The average transaction price for a new EV in March was $59,205, far higher than the overall average transaction price of $47,462, according to data from Cox Automotive. As far as consumer concerns go, 56% of respondents had the fear of running out of charge while driving, and 55% noted a lack of convenient public charging stations. The waning consumer sentiment goes hand in hand with the Trump administration's effort to pull support from the EV industry. House Republicans passed a budget bill on May 22 that will reduce federal incentives for battery manufacturing, as well as other clean energy projects. If the Senate approves it, it would cut the section of the bill that provides the $7,500 EV tax credit. The administration took it a step further, as the bill also institutes a new tax of $250 for EV owners and $100 for hybrid owners. The tax contributes to the Highway Trust Fund to support infrastructure. Investors would be wise to temper growth expectations for the EV industry this year, especially with tariff uncertainty hanging over the automotive industry. That's especially true considering that first-quarter data could give a different impression. EV registrations grew 16%, according to S&P Global Mobility, and market share rose from 6.9% to 7.7%, year over year. There was a demand pull-ahead effect due to people predicting that the tax credit would soon disappear. Rivian, which is currently waiting anxiously for the R2 launch, lacks momentum in 2025 and could use broader industry strength to boost its stock price. Investors who believe in Rivian long-term should keep their eyes open for a buying opportunity this year. For Lucid investors, while this decline in consumer sentiment isn't ideal, the company has plenty of self-driven momentum thanks to quarters of record deliveries. The company is currently ramping up production and deliveries of the new Gravity SUV EV, which will continue driving total deliveries higher throughout the year. For these two young automakers, the broader industry's health is important. The simple truth is that people aren't taking to EVs in the U.S. as quickly as investors had hoped. Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. A Little Bad News for Rivian and Lucid was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
