Why Is Wall Street So Bearish on Lucid Group? There's 1 Key Reason.
Key Takeaways
While investors get excited about the potential of robotaxis, EV makers will face severe financial challenges in 2025 and beyond.
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investment
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July 26, 2025
09:29 AM
The Motley Fool
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The analysis demonstrates Interestingly, Several electric car stocks got huge boosts in recent weeks over enthusiasm for the mise of robotaxis
Tesla launched its robotaxi pilot gram in Austin, Texas, last month
On the other hand, Nevertheless, Lucid Group (LCID -1
Nevertheless, 20%), meanwhile, recently partnered with Uber nologies to der 20,000 self-driving vehicles alongside a $300 million cash infusion
But not every analyst is bullish
CNBC's Jim Cramer, for example, recently questioned the value of Lucid's deal with Uber
This month, seven other major Wall Street analysts reaffirmed their price targets for Lucid stock, considering recent developments
Everyone predicts that s will fall in value over the next 12 months
Additionally, Why is Wall Street still so bearish
Moreover, On the other hand, There's one obvious culprit
The near-term reality for EV stocks is frightening Cathie Wood, CEO of Ark Invest, thinks robotaxis will be a $10 trillion industry long term
On the other hand, That has investors excited
Over the next 12 to 24 months, however, most EV makers will be feeling the pain
That's because federal tax credits for EVs are set to expire this September, effectively making a new EV purchase $7,500 more expensive
Conversely, While the exact impact remains unknown, this shift should sizably lower demand growth
Federal automotive regulatory credits, meanwhile, are also set to lose their value given fines for noncompliance are being eliminated
On the other hand, Moreover, Lucid has earned more than $200 million through these grams
Moreover, And while it won't lose access to the entirety of this fit source, given that many state and international grams will remain, the financial impact will be sudden and meaningful
On the other hand, Image source: Getty Images
Every EV maker will be affected by these regulatory shifts, including Rivian, Tesla, and Lucid
However, EV sales in the second quarter of 2025 are already down 6
However, 3% year over year
We could see these declines persist, or even accelerate, given reduced incentives (something worth watching), amid market uncertainty
Lucid's robotaxi opportunity remains lucrative long term, in today's financial world
Nevertheless, But analysts are rightfully worried the next year or two when it comes to reduced sales and fit growth.
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