Lucid Group (LCID) Stock: Is This Tesla’s Next Challenger In The EV Race?

TLDR:

Lucid Group stock is down 4.9% recently, trading at $2.52 per share with an $8B market cap The company is following Tesla’s proven strategy of starting with luxury vehicles before moving to mass market Analysts expect 200% sales growth over the next 24 months Mixed analyst ratings with consensus “Hold” and average target price of $2.68 Former CEO recently departed and the company likely needs to raise additional capital

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Lucid Group is making waves in the electric vehicle market as it follows Tesla’s proven growth strategy while dealing with recent stock price volatility. The company’s shares fell 4.9% during trading on Wednesday, with the stock closing at $2.44 after trading as low as $2.38.

Lucid Group, Inc. (LCID)

The current stock price of $2.52 represents a small daily gain of 0.20% or $0.01. Lucid’s market capitalization stands at approximately $8 billion.

For investors looking for the next Tesla-like success story, Lucid presents an intriguing case. Tesla shares have risen by more than 20,000% since 2010, turning a modest $5,000 investment into over $1 million.

Lucid appears to be following Tesla’s playbook for growth. This strategy was famously outlined by Elon Musk in 2006, starting with high-end sports cars and gradually moving toward more affordable vehicles.

Tesla’s Blueprint for Success

Tesla began with the premium-priced Roadster before launching the more accessible Model S at $60,000 and the Model X SUV at $75,000. These vehicles helped establish Tesla’s reputation for quality.

The company then reinvested profits to develop the Model 3 and Model Y at even lower price points. Today, these more affordable models account for the vast majority of Tesla’s sales – 1.7 million vehicles in 2025 compared to just 85,000 for all other models combined.

Lucid is now executing a similar plan. The company revealed its Air sedan concept in 2016 and began production five years later. Currently, Lucid sells more than $800 million worth of these sedans annually.

While impressive, this figure is dwarfed by Tesla’s annual revenue of nearly $100 billion. To bridge this gap, Lucid launched its Gravity SUV platform in early 2025.

With both a luxury sedan and SUV now in its lineup – similar to Tesla’s Model S and Model X – Lucid has established its foundation for growth.

Growth Projections

Wall Street has taken notice of Lucid’s expansion. Analysts project sales growth of 82% in 2025 and 91% in 2026, totaling over 200% growth in the next 24 months.

The company’s long-term plans are even more ambitious. By the end of 2026, Lucid expects to begin production of several new mass-market vehicles, comparable to Tesla’s Model Y and Model 3.

This could transform Lucid from a company with less than $1 billion in annual revenue to something much larger over the next five years.

However, investors should be aware of the risks. The departure of Lucid’s longtime CEO creates uncertainty about leadership direction.

The company’s financial position will likely require either issuing more stock or taking on additional debt to fund its ambitious growth plans.

Analyst opinions on Lucid remain mixed. The stock currently has a consensus rating of “Hold” with an average target price of $2.68.

Two analysts have issued “sell” ratings, eight have given “hold” ratings, and two have recommended “buy.” This divided sentiment reflects both the potential upside and the considerable risks.

Institutional investors have been active in the stock. Bank of New York Mellon Corp increased its holdings by 4.5% in the first quarter, while several other institutional investors have recently adjusted their positions.

For investors considering Lucid, it’s worth noting that the company’s 52-week price range is between $1.93 and $4.43, showing considerable volatility.

Lucid’s most recent stock movements show it trading below both its 50-day simple moving average of $2.36 and its 200-day simple moving average of $2.57.

With a current price-to-earnings ratio of -1.84 and a beta of 0.88, Lucid remains a speculative investment with high potential but substantial risk.

The stock closed at $2.44 on Wednesday, down from $2.56 the previous day, with approximately 38.2 million shares changing hands.

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