Lucid (LCID 7.49%), which went public through a 2021 merger with a special purpose acquisition company (SPAC), was once a hot EV stock. In November of that year, its stock closed at a record post-merger high of $57.75 per share.
Today, Lucid's stock trades below $10. Let's see why it lost its luster, and if it's a worthwhile investment for contrarian investors.
Image source: Lucid.
Why did Lucid's stock crash?
Lucid's public debut generated a lot of buzz for three reasons. First, it was led by Tesla's (TSLA 2.97%) former chief vehicle engineer, Peter Rawlinson. Second, it targeted the luxury market with its high-end Air sedans rather than going head-to-head with Tesla. Lastly, it claimed its annual vehicle deliveries would reach 20,000 in 2022, 49,000 in 2023, and 90,000 in 2024.
NASDAQ: LCID
Key Data Points
But like many other SPAC-backed EV makers, Lucid missed its own ambitious targets, delivering only 4,369 vehicles in 2022, 6,001 in 2023, and 10,241 in 2024. It mainly attributed that sluggish growth to supply chain constraints, reduced EV subsidies, competition, and the broader macro headwinds for EV makers. Lucid also postponed the launch of its Gravity SUV from late 2023 to late 2024, and Rawlinson unexpectedly stepped down in early 2025.
Are brighter days ahead for Lucid?
Those setbacks were discouraging, but Lucid isn't down for the count. In 2025, its deliveries rose 55% to 15,841 vehicles as it ramped up its production of the Gravity SUV. It nearly doubled production to 17,840 vehicles and expects to produce 25,000 to 27,000 vehicles in 2026.
It's still backed by the Saudi Arabian government's Public Investment Fund (PIF), which owns over 60% of its shares, and it had $4.6 billion in liquidity at the end of 2025. It's also fulfilling the Saudi Arabian government's 10-year order for 100,000 of its vehicles, which started in 2022.
In 2025, Lucid partnered with Uber (UBER 2.83%) and Nuro to deploy at least 20,000 autonomous Gravity SUVs across the U.S. over six years. It will reportedly launch its third vehicle, the more affordable "Earth" SUV, in late 2026 or early 2027. To support that expansion, it will upgrade its AMP-1 plant in Arizona and its new AMP-2 plant in Saudi Arabia. However, the recent military conflicts across the Middle East could impact those plans.
From 2025 to 2028, analysts expect Lucid's revenue to rise more than fivefold as it narrows its losses. That's an impressive growth trajectory for a stock that trades at less than one times next year's sales, so it might be worth nibbling on if its turnaround efforts bear fruit.
