Lucid Group stock price had a difficult performance this year as it continued falling due to major headwinds. It has dropped by 65% this year, with its market capitalization dropping from over $10.47 billion to the current $3.83 billion. So, is LCID a good company to buy today?
Lucid Group is doing well despite major headwinds
Lucid Group, a top player in the electric vehicle (EV) industry, is facing major headwinds as competition in the industry slows and demand for some of its brands, including Gravity remains weak.
Like other companies in the industry, Lucid Group is facing headwinds after Donald Trump ended the $7,500 EV tax credit as part of the Big Beautiful Bill. Also, the bill ended a provision that let other automakers pay Lucid and other EVs for carbon credits.
Meanwhile, the much-anticipated Gravity SUV is off to a slow start, with the company not disclosing its sales numbers to investors. Some analysts believe that the Gravity sales are now in their hundreds.
The most recent results showed that the company’s production rose by 116% to 3,891 in the third quarter, while its deliveries jumped by 47% to 4,078.
As a result, its revenue rose by 68% to over $336 million as customers rushed to buy EVs ahead of the EV tax credit expiry.
However, the profit drought continued in the third quarter, with its earnings-per-share missing estimates to the second consecutive quarter. Its earnings-per-share are $2.55, up from $2.2, with the company continuing to lose money for each vehicle sold.
On the positive side, analysts expect the company’s business to continue doing relatively well even with the ongoing woes in the electric vehicle industry. The average estimate among analysts is that the fourth-quarter revenue rose to $473 million, up sharply from the $234 million it made in the same period last year.
Analysts see Lucid’s growth continuing
Analysts also expect the company’s annual revenue to be $1.3 billion, followed by $2.43 billion next year. These assumptions mean that analysts expect little disruption from Donald Trump’s policies.
The challenge, however, is that Lucid’s losses will likely continue in the foreseeable future. Analysts expect the upcoming results to show that the earnings per share (EPS) will be a loss of $9.57 this year followed by $6.46 in the following year.
Lucid has also made some notable developments this year. It entered a major deal with Uber, which pledged to buy 20,000 Gravity SUV, which will be equipped with Nuro’s autonomous technology. It also invested $300 million in Lucid, helping it boost its balance sheet.
Lucid also received some good news from Saudi Arabia’s Public Investment Fund (PIC) that increased the delayed term loan facility from $750 million to $2 billion. Therefore, the company hopes that its current cash balances will provide it with enough liquidity until 2027.
Additionally, Lucid is hoping to launch a new vehicle that will be cheaper for other EVs, a move that will likely lead to more revenue and profitability.
Lucid stock price technical analysis
The daily timeframe chart shows that the LCID stock price has been in a strong downward trend in the past few months, reaching a low of $11.
It has remained below all moving averages and the Supertrend indicator, meaning that bears are in control.
A closer look shows that the stock has formed a small double-bottom pattern at $11.5 and a neckline at $14.25. This is one of the most common bullish reversal signs in technical analysis.
Therefore, the stock will likely bounce back in the near term. Such a move will push it to the neckline at $14.25. A move above that level will point to more gains, potentially to the psychological level at $20.
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