Lucid Plans to Introduce Cheaper Models
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy LCID?
Source: NASDAQ.COM
- New Model Strategy: Lucid plans to introduce several new models over the next few years, including an SUV with a starting price under $50,000, aimed at attracting a broader consumer base to address its current high pricing issues and enhance market competitiveness.
- Production Timeline: Although Lucid has committed to starting production of the new models by late 2026, given the company's history of missing production milestones, this timeline may extend to 2027, reflecting its tight financial situation.
- Software and AI Development: Lucid's long-term strategy will shift focus towards software and artificial intelligence, aiming to gradually reduce hardware sales, emulating Tesla's successful model, and striving for a business transformation that enhances overall company value over the next decade.
- Market Competition Pressure: With Tesla's Model 3 and Model Y accounting for over 90% of sales, Lucid must accelerate the launch of more competitive models to ensure survival and growth in the EV market, especially in the face of challenges from competitors like Rivian.
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Analyst Views on LCID
Wall Street analysts forecast LCID stock price to rise
6 Analyst Rating
1 Buy
4 Hold
1 Sell
Hold
Current: 9.750
Low
10.00
Averages
17.00
High
30.00
Current: 9.750
Low
10.00
Averages
17.00
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.
Lucid Group Faces Challenges and Opportunities Ahead
- Significant Revenue Growth: Lucid Group's third-quarter revenue surged 68% year-over-year to $336.6 million, primarily driven by record production and delivery figures, indicating potential recovery in the electric vehicle market.
- Rising Delivery Numbers: Fourth-quarter deliveries increased by 72% compared to the previous year and 31% from the third quarter, showing resilience in demand for Lucid's high-end models despite declines in deliveries from Tesla and Rivian.
- Financial Backing Assurance: The Saudi Public Investment Fund (PIF) now controls 64% of Lucid's shares and has provided a $2 billion credit line, ensuring the company can maintain operations amid cash flow challenges, alleviating investor concerns.
- Future Growth Potential: Lucid plans to launch its Gravity SUV and other affordable models, expected to start production this year at a price point of around $48,000, which will open up broader market opportunities and potentially achieve economies of scale.
See More
Lucid Motors Cuts 12% Workforce to Enhance Profitability Amid Production Increase
- Layoff Announcement: Lucid Motors has announced a 12% workforce reduction aimed at improving profitability, potentially affecting over 800 employees, while exempting those in manufacturing, logistics, and quality, thereby optimizing resource allocation to achieve profitability goals.
- New Model Launch: The company plans to launch a $50,000 mid-sized EV later this year while ramping up production of its Gravity SUV, indicating its ongoing commitment and expansion in the electric vehicle market.
- Employee Support Measures: Lucid will provide severance, bonuses, continued health benefits, and transition services for laid-off employees, although the costs associated with these separations have not been disclosed, reflecting the company's sense of responsibility towards its workforce.
- Stock Performance: Lucid shares fell again on Friday, extending a four-day losing streak, with a year-to-date decline of 70%, highlighting market concerns regarding its profitability and future growth prospects.
See More
Lucid Motors Lays Off 12% of Workforce to Achieve Profitability
- Layoff Announcement: Lucid Motors plans to lay off 12% of its workforce, impacting approximately 800 employees based on an internal memo, highlighting the company's urgency to achieve profitability.
- Employee Impact Scope: The layoffs primarily affect non-hourly workers, with hourly employees in manufacturing, logistics, and quality teams remaining unaffected, indicating a focus on maintaining core production capabilities while optimizing costs.
- Delivery Goals: This layoff initiative coincides with Lucid's efforts to ramp up deliveries of its Gravity SUV, demonstrating a decisive cost-control strategy in response to competitive market pressures.
- New Vehicle Launch: The company is also set to launch a new lower-cost midsize vehicle, and the layoffs may free up resources for the development and marketing of this new model, supporting further expansion in the electric vehicle market.
See More
U.S. Electric Vehicle Customer Satisfaction Reaches New Highs
- Impact of Tax Credit End: The end of federal EV tax credits in the U.S. may lead to fewer new customers, yet existing EV owners show increasing satisfaction, indicating potential market resilience.
- Rising Customer Satisfaction: The JD Power 2026 U.S. electric vehicle ownership study reveals that 96% of battery electric vehicle owners would consider buying or leasing another EV, reflecting significant improvements in performance and charging infrastructure.
- EV Model Rankings: Among premium electric vehicles, the Tesla Model 3 ranks highest at 804 points, with the overall average satisfaction for premium EVs rising from 756 to 786, underscoring Tesla's market leadership.
- Mass Market Performance: In the mass-market segment, the Ford Mustang Mach-e leads with 760 points, while some General Motors models like the Equinox and Blazer score below average, highlighting the competitive intensity in the market.
See More
Rivian Stock Drops 7.16% Amid Market Pressures
- Stock Fluctuation: Rivian Automotive's stock closed at $16.47 on Tuesday, down 7.11%, reflecting market concerns about its future performance, particularly regarding the R2 model launch and 2026 delivery growth expectations.
- Surge in Trading Volume: The trading volume reached 55.4 million shares, approximately 43% above the three-month average, indicating heightened investor interest and volatility in market sentiment regarding Rivian's prospects.
- Analyst Rating Upgrades: Stifel Nicolaus, Deutsche Bank, and Cantor Fitzgerald raised their price targets for Rivian to $20, $23, and $18 respectively, suggesting a continued optimistic outlook despite the stock's decline.
- Profit Outlook: Rivian reported a positive gross profit in Q4 and anticipates that 2026 will be its first full year of positive gross profit, with the success of the R2 model deemed crucial for achieving this goal, although concerns about demand slowdown persist.
See More
Saudi PIF Adjusts Investment Portfolio in Q4
- Portfolio Adjustment: Saudi Arabia's Public Investment Fund (PIF) revealed in its Q4 13F filing that it no longer holds 11,414,680 shares of Take-Two (TTWO), which previously constituted 15% of its assets, indicating a strategic reassessment of its investment approach.
- Transfer to Subsidiary: The TTWO shares have been transferred to PIF's subsidiary, Savvy Games Group, which owns stakes in several video game companies including Niantic, Embracer, and Scopely, highlighting PIF's strategic positioning in the gaming sector.
- Concentration of Major Investments: At the end of Q4, PIF's assets were heavily weighted in Uber, EA, and Lucid, reflecting its investment preferences in technology and entertainment sectors, which may influence future investment decisions.
- Market Outlook Impact: As one of the largest shareholders of Take-Two, the timing of the share transfer coincides with the highly anticipated release of 'GTA 6', which could significantly impact its future investment returns.
See More
Lucid Group Faces Challenges and Opportunities Ahead
- Significant Revenue Growth: Lucid Group's third-quarter revenue surged 68% year-over-year to $336.6 million, primarily driven by record production and delivery figures, indicating potential recovery in the electric vehicle market.
- Rising Delivery Numbers: Fourth-quarter deliveries increased by 72% compared to the previous year and 31% from the third quarter, showing resilience in demand for Lucid's high-end models despite declines in deliveries from Tesla and Rivian.
- Financial Backing Assurance: The Saudi Public Investment Fund (PIF) now controls 64% of Lucid's shares and has provided a $2 billion credit line, ensuring the company can maintain operations amid cash flow challenges, alleviating investor concerns.
- Future Growth Potential: Lucid plans to launch its Gravity SUV and other affordable models, expected to start production this year at a price point of around $48,000, which will open up broader market opportunities and potentially achieve economies of scale.
See More
Lucid Motors Cuts 12% Workforce to Enhance Profitability Amid Production Increase
- Layoff Announcement: Lucid Motors has announced a 12% workforce reduction aimed at improving profitability, potentially affecting over 800 employees, while exempting those in manufacturing, logistics, and quality, thereby optimizing resource allocation to achieve profitability goals.
- New Model Launch: The company plans to launch a $50,000 mid-sized EV later this year while ramping up production of its Gravity SUV, indicating its ongoing commitment and expansion in the electric vehicle market.
- Employee Support Measures: Lucid will provide severance, bonuses, continued health benefits, and transition services for laid-off employees, although the costs associated with these separations have not been disclosed, reflecting the company's sense of responsibility towards its workforce.
- Stock Performance: Lucid shares fell again on Friday, extending a four-day losing streak, with a year-to-date decline of 70%, highlighting market concerns regarding its profitability and future growth prospects.
See More
Lucid Motors Lays Off 12% of Workforce to Achieve Profitability
- Layoff Announcement: Lucid Motors plans to lay off 12% of its workforce, impacting approximately 800 employees based on an internal memo, highlighting the company's urgency to achieve profitability.
- Employee Impact Scope: The layoffs primarily affect non-hourly workers, with hourly employees in manufacturing, logistics, and quality teams remaining unaffected, indicating a focus on maintaining core production capabilities while optimizing costs.
- Delivery Goals: This layoff initiative coincides with Lucid's efforts to ramp up deliveries of its Gravity SUV, demonstrating a decisive cost-control strategy in response to competitive market pressures.
- New Vehicle Launch: The company is also set to launch a new lower-cost midsize vehicle, and the layoffs may free up resources for the development and marketing of this new model, supporting further expansion in the electric vehicle market.
See More
U.S. Electric Vehicle Customer Satisfaction Reaches New Highs
- Impact of Tax Credit End: The end of federal EV tax credits in the U.S. may lead to fewer new customers, yet existing EV owners show increasing satisfaction, indicating potential market resilience.
- Rising Customer Satisfaction: The JD Power 2026 U.S. electric vehicle ownership study reveals that 96% of battery electric vehicle owners would consider buying or leasing another EV, reflecting significant improvements in performance and charging infrastructure.
- EV Model Rankings: Among premium electric vehicles, the Tesla Model 3 ranks highest at 804 points, with the overall average satisfaction for premium EVs rising from 756 to 786, underscoring Tesla's market leadership.
- Mass Market Performance: In the mass-market segment, the Ford Mustang Mach-e leads with 760 points, while some General Motors models like the Equinox and Blazer score below average, highlighting the competitive intensity in the market.
See More
Rivian Stock Drops 7.16% Amid Market Pressures
- Stock Fluctuation: Rivian Automotive's stock closed at $16.47 on Tuesday, down 7.11%, reflecting market concerns about its future performance, particularly regarding the R2 model launch and 2026 delivery growth expectations.
- Surge in Trading Volume: The trading volume reached 55.4 million shares, approximately 43% above the three-month average, indicating heightened investor interest and volatility in market sentiment regarding Rivian's prospects.
- Analyst Rating Upgrades: Stifel Nicolaus, Deutsche Bank, and Cantor Fitzgerald raised their price targets for Rivian to $20, $23, and $18 respectively, suggesting a continued optimistic outlook despite the stock's decline.
- Profit Outlook: Rivian reported a positive gross profit in Q4 and anticipates that 2026 will be its first full year of positive gross profit, with the success of the R2 model deemed crucial for achieving this goal, although concerns about demand slowdown persist.
See More
Saudi PIF Adjusts Investment Portfolio in Q4
- Portfolio Adjustment: Saudi Arabia's Public Investment Fund (PIF) revealed in its Q4 13F filing that it no longer holds 11,414,680 shares of Take-Two (TTWO), which previously constituted 15% of its assets, indicating a strategic reassessment of its investment approach.
- Transfer to Subsidiary: The TTWO shares have been transferred to PIF's subsidiary, Savvy Games Group, which owns stakes in several video game companies including Niantic, Embracer, and Scopely, highlighting PIF's strategic positioning in the gaming sector.
- Concentration of Major Investments: At the end of Q4, PIF's assets were heavily weighted in Uber, EA, and Lucid, reflecting its investment preferences in technology and entertainment sectors, which may influence future investment decisions.
- Market Outlook Impact: As one of the largest shareholders of Take-Two, the timing of the share transfer coincides with the highly anticipated release of 'GTA 6', which could significantly impact its future investment returns.
See More
