Could Buying Lucid Stock Today Set You Up for Life?
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The Motley Fool

Could Buying Lucid Stock Today Set You Up for Life?

July 25, 2025
03:32 AM
4 min read
AI Enhanced
financialelectric vehiclesclean energymarket cyclesseasonal analysismarket

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Market analysis reveals From an analytical perspective, Lucid (LCID -1. 71%) attracts significant attention from investors because the company makes impressive electric vehicles (EVs). At the same time, Its Air...

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investment

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Published

July 25, 2025

03:32 AM

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The Motley Fool

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financialelectric vehiclesclean energymarket cyclesseasonal analysismarket

Market analysis reveals From an analytical perspective, Lucid (LCID -1. 71%) attracts significant attention from investors because the company makes impressive electric vehicles (EVs)

At the same time, Its Air sedan has the longest battery range of any EV currently on the market, and it recently won a Guinness World Record for the longest distance traveled on a single charge, given the current landscape

Meanwhile, its Gravity SUV has the fastest-charging time of any EV outside of China

But, at the risk of raining on Lucid's parade, I don't think any of this is reason to buy up Lucid stock at the moment with hopes that it will set you up for life

Moreover, Image source: Lucid

Moreover, Lucid is still years away from mass-market adoption Lucid's cheapest version of its sedan starts at $70,000, which makes it out of reach for most Americans

Lucid says it will launch a cheaper vehicle later this year that's expected to cost under $50,000

Nevertheless, Conversely, That could be an important step to building a wider consumer base and increasing sales, but the blem is that Lucid's vehicle duction is still too low for that to have any real impact

Even if the vehicle costs less than $50,000 (oftentimes a lower-priced EV is announced, but the ones a company actually begins selling cost significantly more), it'll ly take years for the company to make enough of the lowest-priced models for the model to have any significant affect on the market (this bears monitoring)

What the re reveals is EV market is on a rough road EV sales in the second quarter of this year fell by just over 6%, and there could be more pain on the way

Furthermore, Congress recently passed legislation that eliminates the federal tax credit of $7,500 for new EV purchases by the end of September -- a far cry from the initial expiration timeline of 2032

While Lucid's vehicles were too expensive to qualify for the credit, the company was able to utilize a loophole that made it possible to use the credit to lower leasing costs

Additionally, the federal government had previously set aside $5 billion to help build out EV charging infrastructure in the U, considering recent developments. , but it's currently in a legal battle with some states as it tries to hold onto the funds

Many potential buyers still cite a lack of charging infrastructure as a big barrier to buying an EV, in today's financial world

What's more, President Trump's tariffs are causing a panic among automakers, even U. -based ones Lucid

It's nearly impossible to source all automotive parts from the U. , which means the cost to duce vehicles will go up

Lucid's management said recently that price hikes could be on the way for its vehicles due to tariffs, given current economic conditions

Moreover, Lucid isn't fitable, and leadership is a big question Lucid had a non-GAAP net loss of $0 (quite telling)

At the same time, 20 per in the most recent quarter, which was an imvement from the year-ago quarter but still not great

Meanwhile, The company also has substantial debt of more than $2 billion right now

Adding to the company's difficulties is that 11 executives -- including its former CEO -- have exited the company over the past two years, and its current CEO has only been leading the company since February

That's a lot of leadership instability and financial uncertainty surrounding a company as it tries to ramp up vehicle duction, launch new models, attract a wider customer base, and become fitable

Additionally, This doesn't mean Lucid won't succeed, but it's a big gamble One recent bright spot for Lucid is a deal it just made with Uber in which Lucid will received $300 million in exchange for supplying up to 20,000 Gravity SUVs over the next six years

While the deal is positive, I think the initial stock-price jump after the partnership announcement was premature, especially considering that Lucid still has to ve it can duce and der vehicles fast enough to meet Uber's needs

If the company can weather the next few years by increasing duction, imving its financials, and convincing buyers to purchase its cheaper EVs, then Lucid might end up being a good stock to own

But in order for a stock to set you up for life, it has to be very fitable for many years and have a consistent pipeline of customers, in this volatile climate

Lucid is just too far from that reality right now to think that its stock could set an investor up for life.