Right now, if you're looking for stocks that can potentially double in the near term, one of the last places investors would look is within the automotive industry.
But as they say, don't judge a book by its cover. Because there's an emerging electric vehicle (EV) story, one that's accelerating slower than anticipated, but still growing. And if you're looking for an EV maker with momentum, you might want to glance at Lucid Motors (LCID -3.04%).
Sales race higher
It's not easy being a young EV maker. You're attempting to break into a new category, often as an entirely new brand, with low production volume and high costs. It's a rough business right now. Throw in the fact that the current government administration is throwing curveballs left and right with tariffs, and the automotive industry is certainly complicated.
But don't tell that to Lucid. The young EV maker just delivered a record number of vehicles during the second quarter. If you're counting, that makes the seventh straight quarter with year-over-year gains in deliveries. Lucid delivered a record 3,309 vehicles, and it was enough -- or perhaps it was the seven quarters in a row -- to catch an eye of at least one analyst.
Benchmark analyst Mickey Legg wrote in a note to investors, per the EV blog, "After meeting with LCID's CFO Taoufiq Boussaid on Tuesday and reviewing Q2 production and deliveries, we remain confident in the company's path to scale."
While Lucid has dished out quarter after quarter of sales records, it still has to live up to its own guidance. Lucid plans to produce and deliver roughly 20,000 vehicles in 2025, and with deliveries checking in at 6,418 vehicles during the first six months, the automaker will need to roughly double its delivery output during the back half of the year to meet targets.
With those projections looming large, it's good timing that Lucid's Gravity SUV is currently accelerating production to drive toward consumers after fulfilling orders for employees and showrooms, among other destinations. Not only is the Gravity priced far below its luxury Air sedans, but the luxury SUV market is much larger than luxury sedans, and Lucid projects the addressable market for the Gravity SUV will be roughly six times as large as the Air sedan market.
Lucid Gravity. Image source: Lucid Motors.
Can Lucid double its stock price?
For Lucid to double its stock price, around the $5 mark where Legg has set his price target for the company, it will need to cross a few things off its checklist.
Lucid will need to nearly flawlessly ramp up the production of the Gravity SUV and start driving deliveries higher. Meanwhile, Lucid will also need to work on cost cuts and efficiency to begin making progress toward gross profitability -- much like its competitor Rivian has done for two straight quarters -- to prove it can scale its business. Lucid will also need to convince investors that it has the capital to last until breakeven, which is highly unlikely, or that it has enough promise to warrant more capital investment.
The good news is that at the end of the first quarter, Lucid had $5.76 billion in total liquidity, which should be enough capital to fuel its operations until the second half of 2026. That's also around a major milestone for the company, as it expects its midsize platform, which will spearhead at least three electric SUVs, to arrive.
Ultimately for investors, Lucid has a number of qualities, momentum, and catalysts needed to potentially double. But with current EV market sentiment the way it is, and the administration pulling broader support of EVs, it's going to be an uphill battle in 2025.
That said, investors who are willing to accept significant risk should keep an eye on Lucid in 2026. That's when EV sentiment could turn around and accelerate, its Gravity will be shipping in full force, anticipation for its upcoming midsize SUVs will be growing, it should make progress toward gross profitability and, if it's still setting quarterly delivery records, it just might reach that $5 mark.
