Lucid Faces Production Challenges Despite Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14h ago
0mins
Source: Fool
- Significant Production Growth: In 2025, Lucid produced 18,378 electric vehicles, marking a 104% increase from 2024; however, this output remains significantly lower than Rivian's 42,284 and Tesla's 1,654,667 vehicles, highlighting its competitive disadvantage.
- Lack of Profitability: Lucid has yet to achieve profitability, while Rivian has successfully turned a gross profit, indicating that Rivian is closer to reaching positive earnings, which puts Lucid at risk of being sidelined in the market.
- Declining Stock Price: Over the past year, Lucid's stock has lost more than 50% of its value, and following a 1-for-10 reverse stock split on August 29, 2025, concerns about its future growth have intensified, especially with potential delisting risks looming.
- Strong Liquidity Position: Despite these challenges, Lucid's management claims the company has approximately $5.5 billion in liquidity, demonstrating its ability to access capital markets, but it still needs to scale production significantly to maintain its market position in the highly competitive automotive sector.
Analyst Views on LCID
Wall Street analysts forecast LCID stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LCID is 16.73 USD with a low forecast of 10.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
1 Buy
8 Hold
3 Sell
Hold
Current: 10.640
Low
10.00
Averages
16.73
High
30.00
Current: 10.640
Low
10.00
Averages
16.73
High
30.00
About LCID
Lucid Group, Inc. is a technology company, which designs, engineers, and manufactures electric vehicles (EVs), EV powertrains, and battery systems in-house using its own equipment and factories. It sells vehicles directly to consumers through its retail sales network and through direct online sales. Its vehicles include Lucid Air and Lucid Gravity. Lucid Air is an advanced car, featuring powertrain technology. It offers 420 miles of the United States Environmental Protection Agency (EPA)-estimated range, with an 84-kWh battery pack. The Lucid Air Sapphire is the highest-performance version of the Lucid Air, boasting 1,234 horsepower from three motors, 427 miles of an EPA-estimated range (when equipped with standard wheel covers). The Lucid Gravity provides the interior space and practicality of a full-size SUV within the exterior footprint of a mid-size SUV. It provides space for up to seven adults. It has engineered the Lucid Gravity to deliver up to 450 miles of EPA-estimated range.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
