Lucid Group Reports Significant Vehicle Production Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2025
0mins
Should l Buy LCID?
Source: CNBC
Lucid Group Inc. experienced a price decline of 5.26%, crossing below its 5-day SMA, amid a generally positive market environment where the Nasdaq-100 rose by 0.48% and the S&P 500 increased by 0.06%.
This decline occurs despite Lucid Group's announcement of a 104% increase in vehicle production for 2025, with significant delivery growth and improvements in production efficiency. The company delivered 15,841 vehicles in 2024, marking a 55% increase year-over-year, which indicates strong demand for its electric vehicles. However, the stock's movement suggests sector rotation as investors reassess their positions in the electric vehicle market.
The implications of this production surge are significant for Lucid Group, as it enhances the company's competitive position in the EV market. The strong delivery numbers and production efficiency improvements could lead to better financial performance in the future, despite the current stock price decline.
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Analyst Views on LCID
Wall Street analysts forecast LCID stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LCID is 16.73 USD with a low forecast of 10.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
1 Buy
8 Hold
3 Sell
Hold
Current: 9.530
Low
10.00
Averages
16.73
High
30.00
Current: 9.530
Low
10.00
Averages
16.73
High
30.00
About LCID
Lucid Group, Inc. is a technology company, which designs, engineers, and manufactures electric vehicles (EVs), EV powertrains, and battery systems in-house using its own equipment and factories. It sells vehicles directly to consumers through its retail sales network and through direct online sales. Its vehicles include Lucid Air and Lucid Gravity. Lucid Air is an advanced car, featuring powertrain technology. It offers 420 miles of the United States Environmental Protection Agency (EPA)-estimated range, with an 84-kWh battery pack. The Lucid Air Sapphire is the highest-performance version of the Lucid Air, boasting 1,234 horsepower from three motors, 427 miles of an EPA-estimated range (when equipped with standard wheel covers). The Lucid Gravity provides the interior space and practicality of a full-size SUV within the exterior footprint of a mid-size SUV. It provides space for up to seven adults. It has engineered the Lucid Gravity to deliver up to 450 miles of EPA-estimated range.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investment Talks Exposed: Newly released DOJ documents reveal that Jeffrey Epstein explored potential investments in Lucid in 2017 through at least two channels, while the company was conducting a $400 million Series D round led by Morgan Stanley, which ultimately collapsed after Ford declined to participate as a strategic investor.
- Vanguard Increases Stake: Vanguard Group disclosed a 6% increase in its Lucid holdings to approximately 12 million shares by the end of 2025, valued at nearly $127.5 million, indicating continued institutional confidence despite recent stock price declines.
- Stock Price Fluctuations: Lucid's shares fell about 1% over the past week, closing lower in three of the last five trading sessions, although they surged nearly 14% on Friday following Vanguard's stake increase, reflecting mixed market sentiment regarding the company's future.
- Ongoing Production Challenges: Despite Lucid's plans for a new midsize vehicle platform and a robotaxi program in collaboration with Uber, the company has faced significant production issues and weak EV demand, leading to a 62% drop in stock price over the past year, highlighting the tough market conditions it must navigate.
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- Teen Account Launch: Lyft officially launched its teen accounts nationwide on Monday, aiming to match Uber's similar feature, with CEO David Risher emphasizing the importance of getting the product right, particularly in terms of communication with parents and teens.
- Enhanced Safety Features: The new accounts will match passengers aged 13 to 17 with drivers and include safety features such as pin verification, real-time tracking, and recordings, ensuring the safety of young riders.
- Autonomous Vehicle Strategy: Lyft is ramping up its autonomous vehicle strategy, planning to launch Tensor Robocar services powered by Nvidia technology in 2027, while also rolling out Waymo rides in Nashville this year to compete against rivals like Waymo, Uber, and Tesla.
- Market Expansion and Challenges: Lyft's market expansion includes the acquisition of European taxi app Freenow, and despite facing strong competition from companies like Waymo, Risher believes Lyft is in an
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- Market Share Decline: The global market share of U.S. legacy automakers has dropped from 21.4% in 2019 to an estimated 15.7% in 2025, indicating a severe challenge posed by the robust growth of Chinese EV manufacturers.
- Massive Loss Warning: Stellantis disclosed a $26 billion charge due to a business overhaul, resulting in a more than 20% plunge in its stock, reflecting overestimated expectations regarding the pace of the energy transition and weak market demand.
- Rise of Chinese Brands: Chinese EV sales skyrocketed from approximately 572,300 units in 2020 to 4.95 million in 2025, with a nearly 70% increase in global market share over five years, showcasing the strong expansion capabilities of Chinese brands in the global market.
- Impact of U.S. Policies: U.S. automakers have invested over $27 billion in EV development, but due to policy shifts and declining market demand, many companies are scaling back their EV plans, potentially leading to a long-term decline in competitiveness.
See More
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- Market Share Shift: Since 2023, the Chinese automotive industry has become the largest vehicle exporter globally, with electric vehicle sales projected to reach 4.95 million by 2025, indicating strong growth that poses significant pressure on traditional U.S. automakers.
- Crisis in U.S. Auto Industry: U.S. manufacturers like Stellantis announced a $26 billion restructuring charge due to missteps in the EV transition, leading to a 20% stock plunge, reflecting a decline in competitiveness in the EV market that could impact long-term profitability.
- EV Sales Comparison: Tesla has been surpassed by Chinese brand BYD in European sales, indicating a waning appeal for Tesla in the global EV market, while Chinese brands have increased their market share by nearly 70% over the past five years, posing a threat to U.S. markets.
- Future Outlook: Chinese EV sales are expected to reach 6.5 million units by 2030, and as Chinese brands expand globally, U.S. automakers will face intensified competition, particularly in mature markets.
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- Sales Performance Review: Rivian's revenue reached $1.5 billion in Q3 2025, marking a 78% increase year-over-year; however, the company still reported a $2.75 billion loss for the first nine months, indicating ongoing financial struggles.
- Market Competition Analysis: In the U.S. EV market, Tesla holds a commanding 43.1% market share, while Rivian's sales are less than half of second-place Chevrolet's, highlighting its insufficient market penetration amid fierce competition.
- New Model Launch: Rivian plans to introduce the more affordable R2 SUV starting at $45,000, aimed at attracting a broader consumer base, yet the high price of its R1 model continues to limit market acceptance.
- Gross Margin Challenges: Although Rivian achieved a gross profit of $24 million in Q3, its gross margin stands at a mere 2%, significantly lower than Tesla's 17%, indicating a pressing need for improvement in profitability.
See More
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- Sales Performance: Rivian ranked sixth in EV sales for 2025, surpassing Honda but still trailing Chevrolet, indicating limited market share despite some growth in sales figures.
- New Model Launch: The company plans to introduce the R2 SUV starting at $45,000, aimed at expanding its customer base and attracting more consumers amid intensifying competition in the EV market.
- Financial Condition: Although revenue hit $1.5 billion in Q3 2025, a 78% increase, the company still reported a $2.75 billion loss for the first nine months, highlighting its fragile profitability with a gross margin of only 2%.
- Market Outlook: The end of the EV tax credit has dampened overall EV sales in 2025, leaving Rivian's future uncertain; while it has potential, the investment risks remain high.
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