Lucid Group (LCID 3.58%) stock continues to be highly volatile early in 2026's trading. The electric vehicle (EV) company's share price is up roughly 8% year to date as of this writing, thanks to a recent rally spurred by news that Rockwell Automation's software will be used to support Lucid's manufacturing plant in Saudi Arabia. However, the stock is still down 2% from its peak in 2026.
Meanwhile, the company's share price is down 60% over the last year and 98% from its lifetime high. Could Lucid stock be revving up for an incredible rebound in 2026?
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Does Lucid stock have what it takes to be an explosive winner this year?
Rockwell Automation's software will be used to improve efficiency at its manufacturing facility in Saudi Arabia. The market's positive reaction to the news reflects hopes that technology can be used to substantially improve the EV specialist's margins. Scaling its manufacturing footprint and improving operational efficiency are goals central to the company's long-term growth story. The possibility that the business could see dramatic margin improvements through software-based automation and robotics is a tantalizing one.
NASDAQ: LCID
Key Data Points
Across last year's first three quarters, Lucid posted $831.1 million in revenue. That's up substantially from the $573.4 million in sales it posted in the prior-year period. On the other hand, the EV specialist's cost of goods sold across last year's first three quarters came in at roughly $1.67 billion. With added operational expenses factored in, the business posted an operating loss of roughly $2.44 billion across the stretch.
With the performance update it published at the beginning of this year, Lucid announced that it had produced 18,378 vehicles and delivered 15,841 vehicles in 2025. Production numbers were up 104% annually, and deliveries increased 55% over 2024's figures.
Lucid still has more to do to reach profitability
Expanding vehicle production and deliveries should allow Lucid to benefit from economies of scale, but the business remains years away from reaching positive gross margins, even under optimistic scenarios. Even with potential benefits from automation factored in, reaching positive operating income is even farther out.
Lucid has a market capitalization of roughly $3.5 billion, and is poised to continue posting annual losses north of $2 billion for the foreseeable future even if cost structures improve. As a result, the company will likely continue to lean heavily on funding from Saudi Arabia's Public Investment Fund (PIF). This means issuing and selling new stock to the PIF, which means continued share dilution for retail shareholders.
With these dynamics in mind, it's hard to get excited about Lucid stock in 2026 and beyond.
