Since its debut on the public markets in 2021, Lucid (LCID -6.04%) has emerged as one of the most popular electric vehicle (EV) manufacturers. That popularity has earned its stock a prominent place on the radars of EV and growth investors alike.
NASDAQ: LCID
Key Data Points
The primary reason Lucid stock has drawn such considerable attention is because of the similarity investors recognize between it and another well-known EV company, Tesla (TSLA -0.84%). Like Tesla, after Lucid's stock became available to the public, the company revealed its plan to hit the road with a luxury model and then expand its product line to include more affordable models.
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In a 2021 investor presentation, for example, the company articulated its vision: "Lucid plans to start with high-end cars, build the brand synonymous with luxury, and then manufacture progressively more affordable vehicles in higher volumes."
While the road it has traveled over the past few years has had some bumps, Lucid has recorded several accomplishments that suggest to investors that the company is well positioned to benefit from the growing enthusiasm for EVs.
For one, Lucid has garnered considerable critical acclaim, winning steady praise and awards that include:
- MotorTrend 2022 Car of the Year.
- Co-winner of U.S. News & World Report's 2025 Best Luxury Electric Car.
- A spot on the Car and Driver 10 Best List for 2025.
Investors are keenly attuned to news such as this. After all, if Lucid is racking up accolades from critics, it's reasonable to infer that it will electrify consumers' enthusiasm.
Lucid opened the first auto manufacturing plant in 2023 in Saudi Arabia, where the company plans to expand the facility to achieve an annual production capacity of more than 150,000 vehicles. Lucid reported on its fourth quarter 2024 conference call that it remains on track to commence production of its high-volume mid-size platform in late 2026.
How to buy Lucid stock
The company trades on the Nasdaq exchange under the stock ticker LCID. Whether you're an experienced investor who has logged many miles of experience or buying shares of Lucid would be the first time you park a stock in your portfolio, you'll need to make some simple moves to count yourself as a Lucid shareholder.
- Open your brokerage app: Log into your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should I invest in Lucid?
Surely, EV investors have likely come across Lucid's name at some point over the past few years -- even if they haven't seen the company's vehicles on any highways or byways. Whether it's a smart idea to hitch a ride with this EV upstart, however, is a different story.
First and foremost, people who are averse to volatility will want to avoid Lucid. From the time of its merger with special purpose acquisition company (SPAC) Churchill Capital Corp IV in 2021 to early 2025, shares of Lucid have traded as high as $58 and as low as about $1.93. Bulls are optimistic that the stock can recapture its former glory, but there's certainly no guarantee that it will, let alone whether it will remain that high instead of promptly plunging again.
Similarly, those with a lower tolerance for risk will want to avoid parking Lucid in their portfolios. Although Lucid has earned critical acclaim, there's no certainty that the enthusiasm will translate to investors on a large enough scale that it enables the company to sustain operations.
For those comfortable with a more speculative investment, Lucid may be a growth stock that's a good fit. Bulls are keen on the company's plan to expand its product line beyond its flagship offering. Lucid started production of the luxury SUV Lucid Gravity in late 2024, and the company expects to start production of its midsize vehicle in 2026.
Is Lucid profitable?
With two full years of operations under its belt as a publicly traded company, Lucid has failed to generate any semblance of a profit. In 2023 and 2024, for example, Lucid posted gross losses of $1.34 billion and $923 million, respectively. At the bottom of the income statement, the company's lack of profitability is even more striking. Lucid reported a net loss of $2.7 billion in 2024.
Although the company continues to generate a gross loss, it did succeed in narrowing the shortfall. Lucid has a gross margin of negative 225% in 2023 that narrowed to a gross margin of negative 114% in 2024. Management waxed optimistic about driving closer to profitability in terms of gross profit for 2025 as well, stating that it "expect[s] significant improvement in 2025" on the Q4 2024 conference call.
While Lucid hasn't provided a 2025 forecast that addresses profitability, it's reasonable to expect the company's bottom line to remain in the red. Lucid forecasts notably higher production in 2025 of 20,000 vehicles, about 122% more than the 9,029 vehicles it produced in 2024. Production volumes will likely have to continue increasing considerably before investors can expect Lucid to achieve profitability.
Does Lucid pay a dividend?
At this time, Lucid doesn't pay a dividend, and it's highly unlikely the company will start to reward investors with a dividend anytime soon. Instead of distributing cash to shareholders, Lucid is focused on allocating capital toward expanding its production facilities in Arizona and Saudi Arabia. In 2025, for example, Lucid projects capital expenditures of $1.4 billion.
ETFs with exposure to Lucid
Buying Lucid stock isn't the only way to gain exposure to the luxury EV manufacturer. Investing in an exchange-traded fund (ETF) that includes Lucid among its holdings is another viable option.
Exchange-Traded Fund (ETF)
Will Lucid stock split?
While several stocks split in 2024, and various stocks seem like strong candidates to split their stocks in 2025, Lucid almost definitely won't be one of them. Companies often choose to split their stocks when the share prices climb to a price that may prevent investors from buying individual shares. With Lucid stock failing to rise over $3.50 in early 2025, it seems there's no incentive for Lucid to split its stock now or in the foreseeable future.
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The bottom line on Lucid
While the exuberance surrounding EV stocks has ebbed over the past few years, Lucid has become an industry leader, continuously earning rave reviews from critics. Like any upstart company, though, Lucid has faced challenges.
Growing vehicle production by 7% in 2024 compared to 2023, Lucid disappointed many of its previous advocates. That caused some of the stock's early fans to steer the stock back out of their portfolios. But the potholes Lucid has encountered don't mean the road to success is gone for good. Potential investors must weigh the pros and cons carefully before deciding whether buying Lucid shares is right for them.
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