2025 was not a good year for Lucid Group (LCID +0.80%). The share price of the struggling automaker declined roughly 65% in 2025, far underperforming other pure-play electric vehicle (EV) stocks like Tesla (TSLA +2.11%) and Rivian (RIVN 3.37%), which rose by 11.4% and 48%, respectively, over the same period.
To be fair, investors have plenty to be concerned about. Lucid is burning through boatloads of money, and profitability remains far from sight. That said, there are three important tailwinds the company could enjoy in 2026 and beyond. Let's discuss how new models, self-driving technology, and an increasingly low valuation could potentially change the narrative.
Image source: Getty Images.
New models could supercharge growth
Despite its struggles, few would argue against the fact that Lucid produces some objectively impressive vehicles. The company's flagship Lucid Air continues to win its fair share of industry awards for its design, power, and quality relative to alternatives like the Tesla Model S and offerings from traditional luxury automakers like Mercedes-Benz (MBGY.Y +0.52%) and BMW.
That said, the company's high prices (the Air starts at $70,900) and previous focus on four-door sedans have limited mass market appeal.
Management is changing the narrative with a new SUV called the Gravity, which launched in late 2024 and is currently ramping up production. While this product is quite expensive, with prices ranging from $81,550 to $141,550 depending on options, it serves the much larger U.S. SUV market, which represents a whopping 52% of new car sales in the country.
The new product is already transforming Lucid's operating results. Fourth-quarter production jumped 116% to 8,412 vehicles, while deliveries increased 31% to $5,345. While the company doesn't break down results by model line, the new Gravity is likely responsible for much of this growth, with management claiming to have a substantial order backlog and no need to rely on discounting to drive sales.
Investors are underestimating the Uber deal
In July, Lucid announced a partnership with ride-sharing giant Uber Technologies (UBER 2.46%) to create a next-generation autonomous robotaxi program. The deal will involve buying 20,000 Lucid Gravity vehicles to build out the fleet over six years, alongside a $300 million investment that closed in September. A production-ready version of Uber's Gravity-based robotaxi was unveiled at the 2026 CES, with public road testing expected in the San Francisco Bay area later this year.
This deal could be a game-changer for Lucid because it gives the company access to the fast-growing robotaxi market, which analysts at Goldman Sachs (GS +0.44%) expect to expand at an eye-popping compound annual growth rate (CAGR) of 90% from 2025 to 2030. Uber is an ideal partner because it already boasts a well-established ride-hailing brand.
Surprisingly, Lucid's stock price has declined by around 65% since the Uber partnership announcement in July. This trend suggests the market is totally ignoring the potential long-term value of this deal.
NASDAQ: LCID
Key Data Points
Lucid stock is now relatively cheap
Lucid stock has consistently shed value over the last three years, but with a market cap of just $3.76 billion, it looks close to bottoming out. After years of having a premium valuation, shares now trade for a much more reasonable price-to-sales (P/S) multiple of just 3.12, which is a slight discount to the S&P 500 average of 3.46 and a dramatic discount to pure-play EV alternative Tesla, which boasts a P/S multiple of 16.
Don't get it twisted, Lucid stock is cheap for a reason. This company burned through around $942 million in the third quarter, making it a high-risk, high-reward type of investment. Still, it's starting to look much more attractive this year as the Gravity SUV production ramps up and the market begins to appreciate the significance of the recent robotaxi deal.
