When Lucid Group (LCID +7.28%) went public in 2021, many investors hoped it would be the next Tesla. The electric vehicle (EV) start-up promised cutting-edge technology, luxury appeal, and the potential for explosive growth in the booming EV market. Today, those early believers have watched their investments plummet 96% from the stock's peak.
Yet with Lucid's new Gravity SUV rolling off production lines and the company's vehicles still earning industry accolades for superior range and performance, could this beaten-down stock stage a remarkable comeback?
Lucid makes an exceptional car
In a relatively crowded EV market, Lucid's vehicles stand out with some of the best technology in the industry, attention to detail, and premium luxury standards. The company's Air Grand Touring sedan is one of the most powerful EVs on the market and provides the most range of any EV currently available.
In Car and Driver's real-world tests, the Air Grand Touring delivered 410 miles of range. That's significantly more than Tesla's Model S, which, despite an officially listed range of 400 miles, only delivered 320 miles in the publication's tests. This is no small point; concerns around the range are one of the primary reasons consumers avoid purchasing EVs.
Lucid's powertrain technology -- the heart of an EV, where electricity is turned into mechanical power -- its interior and exterior design, and the quality of its manufacturing have all earned it multiple awards over the years. Since its release in 2022, the Air has won the U.S. News and World Report award for best luxury EV every year.
NASDAQ: LCID
Key Data Points
Lucid is still operating deep in the red
Despite the clear quality of its vehicles and its technology, Lucid has struggled. Sales have been relatively meager since the Air was launched in 2022. Last year, the company delivered just 10,241 vehicles, earning just over $800 million in revenue. In the same time period, Tesla delivered nearly 1.8 million vehicles, earning $77 billion in revenue.
Perhaps even more concerning than its top line is its bottom-line profitability -- or lack thereof. Lucid lost $2.7 billion last year. For every car it sells, it loses quite a bit of money.
Last quarter, the company reported $235 million in revenue from delivering 3,109 vehicles. It also reported operational costs of $927 million. That means each car lost the company $222,000, well over the average price of a new Lucid. Even if you exclude sales, marketing, and administrative costs, and research and development expenses -- and consider only pure production costs -- the company is still losing $73,000 on every vehicle.
Image source: Getty Images.
The Gravity rollout is crucial for the company's future
Despite these struggles, there are reasons to believe the company can execute a turnaround. The company has just launched its Gravity SUV, and management expects sales to pick up significantly.
Although the SUV's rollout is in its early days, overall sales have spiked year over year (YOY). The company delivered 6,418 vehicles in the first half of 2025, up 47% YOY. Its bottom line is improving as well, though it's still heavily in the red. Last quarter, Lucid's net loss was 46% lower compared to the same period last year.
The Gravity SUV is already proving to be a better seller than the company's sedan. But the question remains: Will it be enough of an improvement? The launch comes at a time when Lucid is not just competing against a crowded lineup of rivals, but also a significant softening of the overall EV market. While U.S. sales are still growing, the pace of that growth has slowed significantly. From 2023 to 2024, EV sales grew 40%: however, from 2024 to 2025, that was just 10%.
Consumers are increasingly wary of large price tags -- an especially big problem for the high-priced lineup Lucid offers -- high repair costs, and a lack of charging infrastructure in many areas.
One survey by AAA showed that American attitudes toward EVs are the worst since 2019. Only 16% of respondents said they were likely or very likely to pick an EV as their next car. That's down from 25% from just three years ago. Over the same period, the share of respondents who said they were unlikely or very unlikely to do so grew from 51% to 63%.
Now is the time for Lucid to execute
It's a make-or-break moment for the EV maker. If things don't turn around significantly in the coming year or two, it could be heading for bankruptcy. Still, this presents an opportunity for investors willing to take a significant risk.
Given how far the stock has fallen -- 96% from its high in 2021 -- there appears to be a major upside. But that is only if the company can execute on its vision, and that is a big if.
So the question remains: Is Lucid Group stock a millionaire maker? I don't think so. I think the company's issues with profitability are too great and its vehicles are too expensive to seriously compete in the mass market. Its Gravity SUV rollout has led to an improvement in sales, but it is still underperforming targets set by management.
Still, these issues are why the stock is trading at the level it is, and if you have a hearty appetite for risk, Lucid is a speculative play that could pay off significantly. Just be prepared for the real possibility of losing your entire investment.
As always, the best approach is to look for a diverse and wide set of solid businesses that you believe in for the long term. Millionaire making comes from patient investing over time, not putting all your eggs in one basket.
