Lucid (US:LCID) The Motley Fool·2025-07-15 00:50Core Insights - Lucid Group's flagship vehicle, the Lucid Air, set a world record for the longest journey by an electric car on a single charge, traveling 1,205 kilometers (approximately 749 miles) [1] - Despite this achievement, Lucid Group's stock has dropped over 95% from its peak in 2021, raising questions about its future performance [2] - The company reported a 38% increase in vehicle deliveries year-over-year for Q2 2025, but the total number of vehicles delivered remains low at 6,418 for the first half of 2025 [6] Financial Performance - Lucid Group operates at significant losses, highlighting the challenges of establishing a profitable automotive business [6] - The company's share count has increased by nearly 80% over the past three years, contributing to poor stock performance due to aggressive share dilution [8] - Lucid Group's enterprise value is currently 6.3 times its trailing-12-month sales, which is higher than most of its peers [9] Market Position - Lucid Group is growing faster than legacy automotive manufacturers but remains much smaller and deeply unprofitable [11] - Compared to Rivian Automotive, Lucid's valuation is more than double, despite both companies being unprofitable and working on more affordable models [12] - The company is developing a mid-sized SUV called the Lucid Earth, which could potentially stabilize its business, but it is not expected to launch until late next year or 2027 [13] Future Outlook - The expiration of the federal electric vehicle tax credit at the end of September may hinder Lucid's growth prospects [14] - Predictions suggest that Lucid Group may struggle to sustain growth to support its current valuation, potentially leading to a lower stock price in one year [15]