Latest news with #GravitySUV
Yahoo
14-05-2025
- Automotive
- Yahoo
Is Lucid Group a Millionaire-Maker Stock?
Lucid faces a challenging road ahead, but it is expanding its model lineup. The EV maker is also taking aim at new markets like the Middle East. The stock trades today at less than 5% of its peak price. 10 stocks we like better than Lucid Group › Lucid Group (NASDAQ: LCID) has a stock price of $2.51 and a market capitalization of just $7.7 billion, making it one of the smallest players in the U.S. electric vehicle (EV) space. However, if they exceed the market's expectations, smaller companies have more potential than larger ones to generate multibagger returns -- sometimes even enough to turn their early shareholders into millionaires. For Lucid, that would be easier said than done. The EV maker has been grappling with persistent cash burn, competition, and now the impacts of President Trump's trade wars. So is this mid-cap a buy or a sell today? Lucid stock wasn't always so cheap. In 2021, the company went public via a reverse merger with a special purpose acquisition company (SPAC). That same year, it soared to an all-time high of $58 per share. Today, it's down by more than 95% from that peak. The good news is that in the first quarter, Lucid's revenue jumped 36% year over year to $235 million due to a significant jump in vehicle deliveries -- even though its average selling price per vehicle slipped. However, while the growing top line helped it shrink its operating loss by $38 million to $692 million, that's still an alarming level of quarterly cash burn for a company with only $3.6 billion in cash and short-term investments on its balance sheet. Lucid also has a negative gross margin, which means the cost of manufacturing and delivering its vehicles exceeds the revenue it earns by selling them. The only way out of this predicament is to improve economies of scale through new, higher-volume vehicle models. Some of Lucid's problems may stem from its focus on high-end sedans. According to Topspeed, an automotive information magazine, demand for midsize cars has fallen sharply in the U.S. as consumers pivot to categories like trucks, SUVs, and crossovers. Lucid's management aims to respond to that shift in preference by expanding its vehicle lineup. While the Lucid Air is here to stay, it has added the new luxury Gravity SUV, which likely contributed significantly to its first-quarter growth. However, with a starting price of $81,550, the Gravity won't be a magic bullet for Lucid because it is out of reach of most consumers. Investors should expect more impact next year when the company rolls out its next model, a more affordable SUV. The company intends for its sticker price to start below $50,000. International expansion could be another long-term opportunity for Lucid. The company is majority-owned by Saudi Arabia's Public Investment Fund (PIF), which controls around 60% of its shares. With a GDP per capita of $32,000 and an estimated 58,300 millionaires, the Saudis have plenty of purchasing power to buy luxury vehicles. Lucid opened its first manufacturing facility in that country in 2023. In theory, Lucid Group definitely has millionaire-making potential. Its small market cap, coupled with impressive growth potential in the SUV market, could lead to multibagger returns over the long term. The company delivered just 10,241 vehicles in 2024, which gives it plenty of room to catch up to industry leaders like Tesla, which delivered almost 1.8 million vehicles that year. However, Lucid faces significant risks. Right now, Lucid's cash burn is much too high for comfort. It will likely turn to outside sources of capital, such as additional secondary stock sales. That equity dilution would reduce current shareholders' claims on future earnings. While Lucid's Saudi connection serves as a backstop, it raises the possibility that the company may eventually be taken private. While Lucid should be on your investing watch list, it might make sense to wait and see if the company can make more progress before buying its stock. 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 $598,613!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $753,878!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 169% 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 May 12, 2025 Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Is Lucid Group a Millionaire-Maker Stock? was originally published by The Motley Fool
Yahoo
09-05-2025
- Automotive
- Yahoo
Lucid leans into US manufacturing, Gravity launch amid market headwinds
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. Lucid Motors is pushing forward with increased U.S.-based battery-electric-vehicle production, technology licensing efforts, and the retail rollout of its second model, the Gravity SUV, as it seeks to weather tariff uncertainty and a shifting demand environment. On its first-quarter 2025 earnings call May 6, Lucid reported deliveries of 3,109 vehicles, a 58% increase from Q1 2024 and the company's fifth straight quarterly delivery record. Revenue hit $235 million, up 36% year-over-year, bolstered by a surge in regulatory credit sales. Lucid's quarterly net loss of $366 million bettered Q1 2024's $680 million loss, and it reaffirmed plans to more than double production volume this year. Despite software-related delays that slowed some Gravity handoffs and Studio test-drive availability – Studio being the automaker's answer to showrooms – CEO Marc Winterhoff emphasizes that the SUV's rollout is gaining traction. 'Three-quarters of orders are coming from customers new to the Lucid brand,' he says. Lucid also sees strong early demand for the limited-run Gravity Dream Edition and notes its average selling prices (ASPs) are expected to rise as Gravity volumes are forecast to increase in the second half of 2025. The Gravity joins the Lucid Air sedan in the upstart automaker's lineup, which has been lauded by many for its extreme range and power. It was named a Wards 10 Best Engines & Propulsion Systems' winner in 2022 and 2023. However, as luxury sedan sales have cratered as customers, both in the mass-market and premium/luxury sectors, increasingly embrace utility vehicles, Lucid sales volume has been low. Lucid sold 10,421 vehicles worldwide in 2024, far behind the 1.8 million rival Tesla delivered. The Tesla Model Y SUV, not only the No.1-selling BEV in the world, but the top-selling model overall, accounted for roughly 1 million units of Tesla's 2024 global sales. Lucid executives addressed growing concerns over the impact of auto tariffs and rare-earth material restrictions. While acknowledging a fluid global trade environment, Winterhoff cites Lucid's vertical integration and U.S.-based manufacturing as a competitive advantage. 'We build all our vehicles and major components – including battery packs and drive units – right here in Arizona,' he says of the Casa Grande location. 'This gives us flexibility many other OEMs don't have.' Lucid is also localizing the supply of key inputs. The company is transitioning to Panasonic's new Kansas battery facility and sourcing domestic graphite through partnerships with Graphite One and Sera Resources. Still, CFO Tofiq Kadhim notes Lucid expects gross margin headwinds of 8% to 15% due to tariffs, up from the 7% to 12% range projected in February. 'This is a challenging situation,' he says, 'but adversity is not new to Lucid.' Beyond vehicle sales, Lucid is actively exploring technology licensing and OEM partnerships, highlighting interest in its powertrain systems and software-defined-vehicle architecture. The automaker also confirms that it has held advanced discussions with several automotive manufacturers seeking to leverage Lucid's Arizona manufacturing footprint for U.S.-based production. 'Some OEMs now see our technology as complementary to their own scaling needs,' Winterhoff says. 'We're not just building cars – we're enabling the next wave of electrification.' Lucid recently acquired key assets from Nikola's Arizona operations for $17 million – a move it says adds strategic flexibility, expands capacity, and brings 250 new employees with EV expertise into the fold. Lucid reaffirmed its 2025 production target of 20,000 vehicles, up from 9,029 in 2024, with Gravity expected to account for most of the incremental volume. The automaker said Air volumes will likely remain stable year-over-year. It also emphasized continued investment in its midsize platform, scheduled to launch in late 2026. That vehicle is expected to drive Lucid's push toward profitability by increasing production scale and lowering fixed-cost absorption. Lucid ended the quarter with $5.76 billion in liquidity, which executives said should carry operations through the second half of 2026. Capital expenditures for the year are projected at $1.4 billion, covering expansion at both its AMP-1 vehicle assembly facility in Arizona and AMP-2 assembly plant in Saudi Arabia. 'Our approach is to scale responsibly while staying capital-disciplined,' Kadhim says. For U.S. dealers watching the luxury EV space, Lucid's strategy offers some notable signals: U.S. production is emerging as a retail advantage in a tariff-laden landscape The Gravity SUV is showing strong early demand and brand-expansion potential Lucid's push into tech licensing and OEM partnerships could alter how EV platforms are sourced and supplied domestically 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
28-04-2025
- Automotive
- Yahoo
Prediction: Lucid Group Will Soar in 2026. Here's 1 Reason Why.
It's been a mixed year for Lucid Group (NASDAQ: LCID). Shares of this electric vehicle (EV) stock have fallen alongside competitors including Tesla and Rivian Automotive, yet analyst expectations for Lucid's sales growth have surged. Right now, Wall Street experts expect the company to nearly double sales in 2025. This could be your opportunity to buy into a high-growth stock at a discount. But if you're really looking for big growth potential, pay attention to Lucid's growth prospects starting in 2026. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Lucid stock is down 17% so far in 2025, and shares are trading at just 7.4 times trailing sales. That's a discount to competitors like Tesla, but a premium to other EV makers like Rivian. Lucid's relative premium to Rivian makes a lot of sense. The recent introduction of Lucid's Gravity SUV platform is expected to help sales nearly double this year. Rivian, meanwhile, isn't expected to release any new models this year. Thanks to this expected sales growth, Lucid stock trades at just 5 times forward sales. But looking even further ahead, there's reason to believe that Lucid will hit another sales inflection point in 2026 due to one major event. Last year, it was revealed that Lucid expects to begin production on three new more affordable models, all of which should cost under $50,000. At the time, this timeline seemed aggressive, especially considering its Gravity SUV had yet to be released. Last week, however, Derek Jenkins, a senior vice president at Lucid, confirmed that the company is currently "on track" to begin production of an affordable SUV model in 2026, though he noted that there are "a lot of crazy things going on in the world that can affect that [timeline]." This new Lucid model is expected to compete with Tesla's existing Model Y and Rivian's anticipated R2 midsize SUV. If the company's timeline remains intact, it could see another huge spike in sales growth next year. 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 $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% 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 April 21, 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. Prediction: Lucid Group Will Soar in 2026. Here's 1 Reason Why. was originally published by The Motley Fool
Globe and Mail
28-04-2025
- Automotive
- Globe and Mail
Prediction: Lucid Group Will Soar in 2026. Here's 1 Reason Why.
It's been a mixed year for Lucid Group (NASDAQ: LCID). Shares of this electric vehicle (EV) stock have fallen alongside competitors including Tesla and Rivian Automotive, yet analyst expectations for Lucid's sales growth have surged. Right now, Wall Street experts expect the company to nearly double sales in 2025. This could be your opportunity to buy into a high-growth stock at a discount. But if you're really looking for big growth potential, pay attention to Lucid's growth prospects starting in 2026. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » This one thing will put Lucid's growth on steroids Lucid stock is down 17% so far in 2025, and shares are trading at just 7.4 times trailing sales. That's a discount to competitors like Tesla, but a premium to other EV makers like Rivian. Lucid's relative premium to Rivian makes a lot of sense. The recent introduction of Lucid's Gravity SUV platform is expected to help sales nearly double this year. Rivian, meanwhile, isn't expected to release any new models this year. Thanks to this expected sales growth, Lucid stock trades at just 5 times forward sales. But looking even further ahead, there's reason to believe that Lucid will hit another sales inflection point in 2026 due to one major event. RIVN PS Ratio data by YCharts Last year, it was revealed that Lucid expects to begin production on three new more affordable models, all of which should cost under $50,000. At the time, this timeline seemed aggressive, especially considering its Gravity SUV had yet to be released. Last week, however, Derek Jenkins, a senior vice president at Lucid, confirmed that the company is currently "on track" to begin production of an affordable SUV model in 2026, though he noted that there are "a lot of crazy things going on in the world that can affect that [timeline]." This new Lucid model is expected to compete with Tesla's existing Model Y and Rivian's anticipated R2 midsize SUV. If the company's timeline remains intact, it could see another huge spike in sales growth next year. 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 $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor 's total average return is872% — a market-crushing outperformance compared to160%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 April 21, 2025
Yahoo
27-04-2025
- Automotive
- Yahoo
Every Lucid Group Investor Should Keep an Eye on These 3 Numbers
Lucid Group (NASDAQ: LCID) is expected to have a terrific year when it comes to sales growth. Analysts expect revenue to nearly double in 2025. And with several new mass market models on the way, we could see this growth trajectory persist for years to come. It will be critical to track Lucid's actual revenue. But that's not the only number I'm keeping an eye on. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Due to the recent introduction of its Gravity SUV platform, as well as the future launch of more affordable electric vehicles, Lucid is experiencing a phase of heavy top-line growth. That's great news for investors. But as a company yet to reach profitability, this growth comes at a cost. Lucid's cash balance is far below that of peers like Tesla and Rivian. Its gross margins, meanwhile, remain deeply negative, meaning that it loses money on every car it sells. Its total number of shares outstanding has also ticked up in recent quarters, suggesting that the company is turning to dilution in order to remain solvent. There's no doubt that Lucid is a promising company when it comes to sales growth. But it's running out of time when it comes to liquidity and access to capital. The company generated negative free cash flow of $3 billion last year, with that cash burn accelerating toward the end of the year. Expect Lucid to tap markets again this year for additional funding, diluting shareholders in the process. If investors don't see gross margins pick up considerably -- something both Rivian and Tesla have been able to do over the years -- they may see Lucid dilute shareholders to fund its aggressive revenue growth. The end result may be a poor performance for the stock price, even if sales do grow immensely in the years to come. 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 $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% 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 April 21, 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. Every Lucid Group Investor Should Keep an Eye on These 3 Numbers was originally published by The Motley Fool Sign in to access your portfolio
