Key Stats for Lucid Group Stock
- YTD Price Change for Lucid stock: -65%
- $LCID Share Price as of Dec. 26: $11.41
- 52-Week High: $36.40
- $LCID Stock Price Target: $18.06
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What Happened?
Lucid Group (LCID) stock dropped 4.4% last Tuesday after CNBC’s Jim Cramer told investors to sell the luxury electric vehicle maker.
His “sell, sell, sell” warning highlighted Lucid’s severe cash burn problem, with the company burning through over $950 million in its most recent quarter alone. Valued at a market cap of $3.7 billion, Lucid stock is down over 60% in 2025.
The EV maker is ramping up production of its new Gravity SUV while dealing with negative gross margins, meaning the company loses money on every car it sells.
On top of financial struggles, the broader EV market has weakened significantly in 2025, made worse by the Trump administration’s removal of the $7,500 federal EV tax credit.
LCID stock has now fallen roughly 60% since the beginning of the year as investors question whether the company can survive long enough to reach profitability.
The stock recently hit all-time lows, prompting Lucid’s head of communications to publicly reassure nervous shareholders about the company’s financial runway.
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What the Market Is Telling Us About Lucid Stock
The market’s reaction shows deep skepticism about Lucid’s path forward. Just days ago, LCID stock gained almost 4% when executives tried to calm investor fears by emphasizing the company’s “strong liquidity runway.”
Lucid recently raised $975 million through convertible notes and secured access to a $2 billion credit facility from Saudi Arabia’s Public Investment Fund (PIF), which owns about 60% of the company. Management claims these moves give Lucid funding that should last into 2027.
But here’s the problem: Lucid’s cash burn isn’t slowing down anytime soon. The company is in a critical growth phase, ramping production of the Gravity SUV while developing a family of midsize vehicles planned for late 2026. Both initiatives require massive capital investments before generating meaningful revenue.
LCID stock faces unique risks that competitors like Rivian and Tesla don’t. The PIF’s 60% control creates uncertainty. While it’s great to have deep-pocketed support, investors worry what happens if Saudi Arabia’s sovereign wealth fund decides to cut its losses.
The selling pressure alone would devastate LCID stock, and raising additional capital would become much more expensive.
During recent investor presentations, Lucid executives acknowledged struggling with suppliers on seemingly simple components like seats, showing how even basic parts can disrupt an entire production line when you’re building complex vehicles with thousands of components.
The departure of CEO Peter Rawlinson and the ongoing search for permanent leadership created additional instability at exactly the wrong time.
Lucid needs strong execution during vehicle launches, but management uncertainty makes investors nervous about the company’s ability to deliver.
Lucid has posted seven consecutive quarters of record deliveries and expects the Gravity SUV to make up the majority of production in the fourth quarter.
The company also announced plans to build a second factory in Saudi Arabia to manufacture its upcoming midsize platform, which will start around $50,000 and target the heart of the EV market.
Company executives emphasized during presentations that they’re moving from a startup focused on building capacity to a business focused on generating cash and maximizing returns. They’re implementing changes to tighten inventory management and improve working capital efficiency.
LCID stock remains far too risky for most investors right now, given it operates with negative margins, burns nearly $1 billion per quarter, and faces a weakening EV market with intense competition from established players and aggressive Chinese manufacturers.
For LCID stock to recover, Lucid needs to successfully launch its midsize platform, achieve positive gross margins, and prove there’s genuine consumer demand for its vehicles at scale. Until then, investors should expect continued volatility and downward pressure on the stock price.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
