If you look at a stock price chart for Lucid Group (LCID -1.57%) over the last 12 months, it looks like a continuous walk down a mountain, with shares plummeting 74%.
The company faces many challenges in turning things around, but the good news is that the management team recognizes the situation. It has some plans in place and an opportunity in the robotaxi market, but it's going to be an uphill battle to send the stock price moving upward.
Image source: Getty Images.
The reasons for the sinking stock price
There have been a few problems plaguing the electric vehicle (EV) maker Lucid, one being growing losses. In 2024, the company reported a net loss of around $3 billion, which climbed to $3.7 billion in 2025. Another problem has been costs, which also keep climbing. Total cost and expenses jumped from $3.8 billion in 2024 to $4.8 billion in 2025.
The company is also just not producing that many vehicles. In 2025, Lucid delivered just under 16,000 vehicles. It did offer 2026 production guidelines of up to 27,000 vehicles, but in comparison, EV maker Rivian Automotive produced and delivered over 42,000 vehicles in 2025. That also all pales in comparison to the 1.6 million vehicles Tesla produced and delivered in 2025.
NASDAQ: LCID
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What could turn things around
The good news for shareholders is that Lucid isn't oblivious. The company recently announced plans to expand its software revenue streams and emphasized the need to reach profitability and positive free cash flow faster. In fact, the first slide of its Investor Day presentation was labeled "Accelerating to Profitability."
And Lucid has a few opportunities to turn things around. One is a partnership with Uber Technologies, whereby Uber has committed to purchase up to 35,000 vehicles from Lucid for its robotaxi service. If that collaboration proves successful, there could be even more money to be made for Lucid. While it's still a young sector now, Goldman Sachs projects the global robotaxi market will be a $415 billion industry in 2035.
For sales to regular consumers, many of Lucid's Air models start at $70,000 or more, so it's expanding to offer a more affordable option. It's building out a midsize platform, with vehicles starting below $50,000. It's also doing well in the EV luxury sedan market, where its Lucid Air led the U.S. market in unit sales in 2025. If it can ramp up its production, the EV maker can take away even more market share from its competitors in that sector.
What Lucid needs to offer
I'd want to see progress in several areas before investing in Lucid. It needs to control costs, generate more revenue, produce and deliver more vehicles, have a successful robotaxi rollout with Uber, and eventually aim for profitability.
That's a tall order, so it will take time. Also, it's important that Lucid can offer consistency and that its results aren't wildly different from quarter to quarter. I'm perfectly fine sitting on the sidelines until Lucid starts showing signs of improvement consistently.
