Lucid Is on a Roll, So Why Is It Down 30% in 2025?

Core Insights - Lucid has experienced record-breaking vehicle deliveries and formed a partnership with Uber, yet its stock has declined by 30% in 2025 [1][4]. Group 1: Partnership and Technology - Lucid is set to partner with Uber to launch a robotaxi service, deploying over 20,000 vehicles equipped with Nuro Driver over six years [2]. - The partnership is seen as a validation of Lucid's technology, with the Interim CEO highlighting its potential in the autonomous vehicle market [3]. Group 2: Sales Momentum - Lucid has achieved six consecutive quarters of record-breaking vehicle deliveries, with expectations for continued growth as production of the new Gravity SUV accelerates [3][4]. Group 3: Challenges Facing Lucid - The loss of regulatory credit sales has negatively impacted Lucid, as the removal of penalties for automakers has diminished the incentive to purchase credits [5]. - The impending expiration of the $7,500 tax credit on September 30 is expected to create a demand lull in the fourth quarter, pressuring Lucid to ramp up Gravity SUV production [6]. - Tariffs have created logistical challenges and bottlenecks in sourcing rare earth materials for battery production, further complicating operations for Lucid [7]. Group 4: Financial Outlook - Despite the challenges, Lucid has strong backing from Saudi Arabia's Public Investment Fund and is positioned for potential recovery in the latter half of 2025 [9].