Is Lucid Stock a Buy Now?
Investment
The Motley Fool

Is Lucid Stock a Buy Now?

July 28, 2025
05:41 AM
4 min read
AI Enhanced
investmentmoneyfinancialelectric vehiclesclean energymarket cyclesseasonal analysismarket

Key Takeaways

Lucid still has a long road ahead, but it is navigating a clear path as it works toward being sustainably profitable.

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4 min read

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investment

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Published

July 28, 2025

05:41 AM

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The Motley Fool

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Key Topics
investmentmoneyfinancialelectric vehiclesclean energymarket cyclesseasonal analysismarket

What's remarkable is Lucid Group (LCID -2. 17%) makes all-electric vehicles, including both a sedan and an SUV

That said, it is really just a start-up in what is a highly competitive and capital-intensive industry

However, It's hitting important milestones and increasingly looks it may be an industry survivor, in today's financial world

At the same time, But is it worth buying (noteworthy indeed)

On the other hand, What does Lucid do

In some ways there's nothing particularly differentiating Lucid (something worth watching)

At the same time, When Tesla (TSLA 3. 49%) started making electric vehicles (EVs) it was really the only player in the space

Tesla effectively ved that EVs were a viable consumer duct

Now every major automaker is making EVs and so are a large number of upstarts, Lucid, that are trying to in Tesla's footsteps (noteworthy indeed)

Image source: Getty Images

So, Lucid is really just one of many companies trying to catch a little bit of Tesla's lightning (which is quite significant)

That said, there have been many upstarts in the space that have flamed out

Lucid has managed to keep moving forward

Today it has a lineup of sedans and SUVs

It has super-high-end EVs and vehicles that are relatively more affordable

Nevertheless, Additionally, Nology is one of the key focus points for Lucid (this bears monitoring)

On the other hand, It has industry-leading batteries, which are basically the gas tank for an EV

So it isn't just a me-too company; it is adding materially to the industry's nology

Conversely, There's a good reason to believe it can keep doing that and use that as a lever to build a sustainably fitable, given the current landscape

Where is Lucid today (quite telling) (something worth watching)

What the data shows is end goal is to become a sustainably fitable EV maker, but that's not where Lucid is right now

Additionally, It's losing money on every single car it sells

That's not shocking, however, since Tesla had to go through this early stage of development, as well

However, But now that Wall Street isn't quite as excited EVs as it once was, Lucid's stock price has been under material pressure

On the other hand, Notably, the s have fallen over 90% from the all-time highs reached just after it became public

Essentially, investors are saying this is a high-risk investment

In contrast, And it is a high-risk investment that most investors should bably watch from the sidelines

But for more aggressive investors, the low price could also be an opportunity to get in on the ground floor of a company that is steadily hitting important goals, in this volatile climate

The big goal right now is duction, in today's market environment

In the first quarter of 2025, Lucid made around 2,200 vehicles and sold roughly 3,100

Those are tiny figures in the auto sector but represent big year-over-year imvements

Moreover, What's important here is that the more cars the company makes and sells, the wider its cost gets spread, in today's market environment

At the same time, And that, in turn, gets the closer to turning a fit

However, Additionally, To put a number on that, the company's gross fit margin in the first quarter was negative 97%

That's terrible, but it is also a huge imvement over the gross fit margin of negative 134% in the same quarter of 2024

Conversely, The more cars it makes and sells, the closer it gets to a gross fit

The next step after that is attempting to achieve positive earnings (which is quite significant)

And if it does that, Lucid will have successfully ed Tesla's lead, amid market uncertainty

Execution will be the key to Lucid's success As noted, this is not a great investment option for most investors

Additionally, Only aggressive types should be looking at Lucid, in today's financial world

It's nowhere near being a sustainably fitable at this point, and it could be years before it gets there

However, Moreover, success here depends heavily on management's ability to continue executing well on its goals (noteworthy indeed) (noteworthy indeed)

On the other hand, And yet, given the fairly steady gress so far, it looks increasingly Lucid could reach the key milestone that most investors want, a sustainably fitable (something worth watching)

If you believe the company can eventually get to that destination, it could be worth buying now, while the stock remains deeply unloved (this bears monitoring).