Lucid's (NASDAQ: LCID) stock has declined more than 70% over the past 12 months. The luxury EV maker, which went public through a 2021 merger with a special purpose acquisition company (SPAC), disappointed investors with sluggish deliveries and steep losses. Let's see if it can break out of its rut over the next year. Why did Lucid's stock crash? Lucid initially attracted a lot of attention because it was led by Peter Rawlinson, the former chief vehicle engineer at Tesla (NASDAQ: TSLA), who oversaw the d ...

Core Viewpoint - Lucid Group is expected to experience significant growth in the next decade, potentially aligning its strategy more closely with Tesla by introducing cheaper electric vehicles and shifting focus towards software solutions [1]. Group 1: Introduction of Cheaper Models - The introduction of mass-market vehicles is crucial for the growth of electric vehicle companies, as most of Lucid's current lineup is priced above $100,000, limiting its market reach [2][3]. - Lucid has previously indicated plans to release models with starting prices under $50,000, with production of a cheaper SUV model expected to begin in late 2026 at its upgraded factory in Saudi Arabia, although there are concerns about meeting this timeline due to financial constraints [3][4]. - Over the next decade, cheaper vehicle models are anticipated to account for the majority of Lucid's vehicle sales, similar to Tesla's sales distribution [4]. Group 2: Strategic Shift Towards Software - Lucid's leadership envisions a long-term strategy where a minority of sales will come from hardware, with a greater focus on software solutions for advanced capabilities like autonomous driving [6]. - Similar to Tesla's vision of integrating software and AI into its business model, Lucid is expected to pursue a strategic pivot towards software, although its financial limitations may pose challenges [7]. - Investors should be prepared for Lucid to allocate significant resources towards this potential growth area over the next decade [7].

Core Insights - The electric vehicle (EV) market is experiencing significant growth, presenting substantial investment opportunities, particularly for companies like Lucid and Nio [2][13] Lucid Motors - Lucid achieved a record delivery of 15,841 vehicles in 2025, marking a 55% increase from the previous year, with over one-third of these deliveries occurring in the fourth quarter [3] - Production figures for Lucid saw a remarkable increase, with fourth-quarter production rising 116% sequentially from the third quarter and 148% year-over-year [5] - Despite delivery and production momentum, Lucid is facing financial challenges, having incurred an accumulated deficit of $14.8 billion by the end of Q3 2025 and burning through nearly half of its cash reserves last year [6] Nio Inc. - Nio reported a significant increase in deliveries, achieving a new monthly high of 48,135 vehicles in December, a nearly 55% increase year-over-year, and a 72% increase in fourth-quarter deliveries to over 326,000 vehicles [8][9] - Nio's gross profit margins have been improving, and management anticipates an adjusted profit from operations between $100 million and $172 million for Q4 2025, indicating potential for future profitability [11] - Nio aims to achieve breakeven on an adjusted basis for the full year 2026, positioning itself ahead of Lucid in terms of scale and profitability [11] Investment Considerations - Both Lucid and Nio present investment opportunities due to their delivery momentum and revenue growth, but they also face significant challenges, including cash burn for Lucid and potential strategic risks for Nio related to its battery-swap network [12][13]

Group 1 - The Bloomberg Electric Vehicle Price Return Index increased by 1.32%, closing at 3662.78 points [1] - SQM, a Chilean chemical and mining company, saw a stock price increase of 7.1% [1] - US-based Albemarle Corporation's stock rose by 4.3% [1] - Xiaomi Group's H-shares closed up by 4.27% [1] - STMicroelectronics' stock in Europe increased by 2.92% [1] - Hesai Technology's stock declined by 6.2% [1] - Lucid Group's stock fell by 8.3% [1]

Core Insights - General Motors has appointed Claudia Gast as the new Vice President of Finance, Strategy, Corporate Development, and Technology Partnerships [1] - Gast previously held the position of Senior Vice President of Strategy and Business Development at electric vehicle startup Lucid Motors [1] - The automotive industry is increasingly hiring executives from electric vehicle startups and technology companies to navigate significant technological transformations, including electrification, autonomous driving, and software-centric vehicles [1]

Company Performance - Lucid Group (LCID) closed at $11.09, reflecting a +2.12% increase from the previous day, outperforming the S&P 500's daily gain of 0.47% [1] - Over the past month, Lucid Group's shares have decreased by 4.15%, while the Auto-Tires-Trucks sector and the S&P 500 have lost 1.32% and 0.16%, respectively [1] Upcoming Earnings - The upcoming earnings report for Lucid Group is scheduled for February 24, 2026, with an expected EPS of -$2.49, indicating a 13.18% decline compared to the same quarter last year [2] - Revenue is projected at $461.5 million, representing a significant increase of 96.83% from the prior-year quarter [2] Annual Estimates - For the annual period, Zacks Consensus Estimates predict an EPS of -$10.73 and revenue of $1.28 billion, reflecting increases of +14.16% and +58.74% from the previous year, respectively [3] - Changes in analyst estimates for Lucid Group are crucial as they indicate shifts in near-term business trends, with positive revisions suggesting analysts' confidence in the company's performance [3] Zacks Rank and Industry Performance - The Zacks Rank system, which evaluates estimate changes, currently assigns Lucid Group a rank of 4 (Sell), indicating a less favorable outlook [5] - The Automotive - Domestic industry, part of the Auto-Tires-Trucks sector, holds a Zacks Industry Rank of 84, placing it in the top 35% of over 250 industries [6]

Core Insights - General Motors has appointed an executive from electric-vehicle startup Lucid Motors to lead its corporate strategy, indicating a strategic shift towards enhancing partnerships with technology companies [1] Company Strategy - The new role will focus on scouting for partnerships with technology firms, which suggests a proactive approach to integrating advanced technologies into General Motors' operations [1]

Core Insights - Lucid Group, Inc. has appointed Neil Marsons as the Senior Vice President of Supply Chain to enhance its global supply chain capabilities [1][4] - Marsons brings over 20 years of experience from roles at Rolls Royce and JCB, and has previously advised Lucid on supply chain strategy [2][3] - The appointment is part of Lucid's broader strategy to accelerate growth and improve operational efficiency as it prepares for the launch of new vehicle platforms [5] Company Developments - Marsons will report to Interim CEO Marc Winterhoff and is expected to strengthen supply chain reliability, performance, and cost efficiency [3][4] - Claudia Gast, the former Senior Vice President of Strategy and Business Development, will be leaving the company to pursue other opportunities [4] - Recent leadership changes also include the appointment of Marnie Levergood as Senior Vice President of Quality and promotions for Emad Dlala and Erwin Raphel [5] Industry Context - Lucid Group focuses on creating advanced electric vehicles, with its manufacturing facilities located in Arizona and Saudi Arabia [6] - The company aims to leverage its technology and innovation to enhance the electric vehicle market and improve operational excellence [6]

Core Insights - The meme stock phenomenon began in 2021 with GameStop, driven by retail traders on Reddit's WallStreetBets forum, leading to significant price surges due to short squeezes [1] - Investments in meme stocks from 2016 or at their IPOs have resulted in varied outcomes, with some stocks yielding massive gains while others have led to substantial losses [2] Investment Performance - A $1,000 investment in various meme stocks a decade ago would yield different values today, highlighting the volatility and potential of these stocks [3] - Notable performance includes: - GameStop (GME): $3,532 (+253%) - AMC Entertainment Holdings (AMC): $11 (-98.9%) - Palantir Technologies (PLTR): $14,659 (+1,366%) - Carvana (CVNA): $29,712 (+2,871%) - Roku (ROKU): $6,033 (+503%) [4] Market Trends - Meme stocks continue to emerge, indicating a persistent trend driven by social media sentiment rather than traditional business fundamentals [5]

Core Insights - Wolverine Asset Management LLC reduced its exposure to Lucid Group by 3,522,200 shares in Q4 2025, with an estimated transaction value of approximately $56.28 million [1] - The quarter-end value of Lucid's position decreased by $305.60 million, reflecting both share sales and stock price movement [1] Company Overview - Lucid Group is a technology-driven automotive manufacturer focused on advanced electric vehicles, leveraging proprietary EV technology and vertical integration to compete in the premium segment [4] - The company operates a vertically integrated business model, generating revenue through direct sales of electric vehicles and related technologies via retail studios and online channels [8] Financial Performance - As of February 2, 2026, Lucid's stock price was $10.29, with a market capitalization of $3.15 billion [2] - The company reported a revenue of $1.07 billion and a net income of -$2.28 billion for the trailing twelve months [2] Sales and Market Strategy - Lucid has launched its first new electric vehicle, the Gravity SUV, aiming to expand its market beyond the luxury Air sedans [5] - A lower-priced Gravity trim is expected to follow the Grand Touring edition currently being sold [5] Investor Sentiment - The slow ramp in sales is draining Lucid's finances, with reliance on support from its largest shareholder, Saudi Arabia's Public Investment Fund (PIF) [6] - Despite PIF's continued support, investors are looking for the underlying business to provide financial stability [6] - Lucid shares were down 59.3% over the prior year, significantly lagging the S&P 500 by 73.6 percentage points [7]