Lucid Motors Doubles Production Yet Remains High-Risk Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant Production Growth: Lucid produced approximately 18,000 electric vehicles in 2025, marking a roughly 100% year-over-year increase; however, this figure pales in comparison to Tesla's 1.65 million, highlighting Lucid's disadvantage in a competitive EV market.
- Capital Market Challenges: The recent reverse stock split indicates Lucid's risk of delisting, which restricts its ability to raise funds in capital markets, particularly concerning as it continues to incur losses while needing substantial capital investments.
- Intensifying Market Competition: With every major automaker now offering EVs, Lucid faces heightened competitive pressure; despite its leading battery technology, differentiating itself from larger players like Tesla has become increasingly difficult.
- Investment Risk Advisory: While Lucid has achieved key milestones in production and product development, the overall risk-reward balance remains skewed towards risk, suggesting that most investors should wait for further development milestones before considering an investment.
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: 11.470
Low
10.00
Averages
16.73
High
30.00
Current: 11.470
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.
