Headlines for electric vehicle (EV) stocks are being dominated by Tesla's robotaxi launch in Austin, Texas. Lucid Group (LCID -5.76%), meanwhile, had quietly lost nearly 25% of its value in 2025 before bouncing back this week on news of a deal with Uber. However, Lucid could soon reach some exciting milestones. If you're looking to buy into the next Tesla, this could be your chance.
Lucid Group could be the next Tesla for two reasons
Lucid is doing a great job at mimicking Tesla's proven strategy for growth. First, it launched its luxury Air sedan and Gravity SUV platforms -- high-priced models similar to Tesla's Model S and Model X vehicles. Next, it plans to launch several more affordable vehicles to compete directly with Tesla's Model Y and Model 3 vehicles, both of which have starting prices under $50,000.
When Tesla launched its affordable models, sales went on to double, then triple, in the years that followed. Today, the Model Y and Model 3 account for 90% of Tesla's vehicle revenue. By launching its own affordable models, Lucid has the opportunity to repeat this success story. According to management, these new models should start production by the end of 2026. But there's actually another catalyst that could make Lucid an even more compelling long-term buy.
Image source: Getty Images.
Several analysts believe that most of Tesla's value over the next decade won't be derived from selling cars. Instead, Tesla's dominance will depend on services like its new robotaxi division.
Similarly, Lucid's long-term value may be more related to services than manufacturing. Earlier this year, Peter Rawlinson, Lucid's outgoing CEO, stressed that the company's software and technology stack could eventually be licensed to other automakers worldwide. "I'd love it to be 20-80," Rawlinson said. "Twenty percent doing cars, 80% licensing."
Licensing should come with higher profit margins, and perhaps a more durable economic moat. With a paltry $7 billion market cap, Lucid is a great investment for patient and aggressive growth investors.
