Lucid Group Slides as Bold EV Bets Test Investor Nerves

Lucid Group ( (LCID) ) has fallen by -10.12%. Read on to learn why.

Lucid Group shares fell 10.12% over the past week as investors weighed the company’s ambitious growth plans against ongoing financial and operational pressures. While recent updates showed a strong year-over-year jump in revenue and vehicle production, Lucid is still generating sizable GAAP losses of nearly $1 billion per quarter, keeping profitability a distant goal. This disconnect between rising output and persistent losses has rattled sentiment, particularly as the broader electric-vehicle sector faces higher costs, weaker incentives, and regulatory uncertainty.

Analyst reaction has been cautious, reinforcing the bearish tone in the stock. RBC Capital and Robert W. Baird both reaffirmed Hold ratings with trimmed price targets around $14, while Morgan Stanley maintained a Sell rating and a $10 target. Overall, Wall Street still sits at a Hold consensus, with average targets in the mid- to high-teens signaling theoretical upside from current levels but also reflecting doubts about execution risk, production ramp-up challenges, and the company’s heavy cash burn.

At the same time, Lucid Group continues to advance several strategic initiatives that could reshape its long-term story, even if they are not yet easing near-term market nerves. The company is pushing ahead with a full-scale manufacturing plant near Jeddah, Saudi Arabia, aiming to dramatically cut logistics costs and eventually build up to 150,000 vehicles annually, backed by the kingdom’s powerful Public Investment Fund. It is also preparing a more affordable mid-size SUV platform and expanding its robotaxi partnership with Uber and Nuro using the Gravity SUV. For now, however, investors appear to be waiting for clearer proof that these projects can translate into sustainable profit, helping to drive this week’s 10.12% drop in the stock.