Lucid Group (LCID -1.60%) was one of the most anticipated initial public offering (IPO) stocks in 2021. The electric-vehicle (EV) industry was red-hot, and Lucid, backed by Saudi Arabia's Public Investment Fund, planned to deliver 20,000 units of its flagship luxury Air sedan, worth nearly 2.2 billion in sales, in 2022. By 2024, Lucid projected its revenue would hit a whopping $9.9 billion.
With expectations running high, Lucid stock surged a staggering 280% in 2021. On the day of its listing on July 26, 2021, it closed at $26.83 per share. If you'd invested $1,000 at that price, you'd have expected the stock to become a multibagger by now.
Image source: Getty Images.
Here's what actually happened, though: That investment of $1,000 is worth only $95 today. Ouch.
Lucid failed investors miserably. It consistently missed production targets, faced massive cost overruns and cash burn, and struggled to sell its luxury cars. In 2024, it generated only $808 million in revenue and incurred a net loss of $2.7 billion.
A lot has happened at Lucid over the past few months though, reigniting investor interest in the beaten-down stock.
Why Lucid stock could jump 10x
Lucid is expanding production and plans to deliver around 20,000 units of Air sedan and Gravity SUVs this year. It also recently bought Nikola's Coolidge and Phoenix manufacturing facilities.
The biggest deal, however, is Lucid's partnership with Uber Technologies (UBER 0.16%). Uber will deploy over 20,000 of Lucid Gravity SUVs equipped with Nuro's Level 4 autonomy software over six years starting in 2026. Uber will also invest millions of dollars in Lucid.
While its partnership with Uber validates Lucid's EV technology, management is planning a 1-for-10 reverse stock split. Although there'll be no change in the company's fundamentals, the reverse stock split will boost Lucid stock's price by 10x.
Lucid hopes a higher market price will boost its image and attract institutional investors. While that could be true, it shouldn't be your reason to buy Lucid stock -- if you consider buying it all.
