Lucid Stock Plunges 22.7% in a Month: Should You Buy, Sell or Hold?

Core Insights - Lucid Group, Inc. (LCID) shares have decreased by 22.7% over the past month, underperforming the Zacks Automotive - Domestic industry's growth of 0.8% [1] - The company reported a quarterly loss of 28 cents per share in Q2 2025, which is an improvement from a loss of 29 cents per share in the same period last year [5] - Lucid's revenues for Q2 2025 reached $259.4 million, up from $201 million in the previous year [5] - The automaker delivered 3,309 vehicles in Q2 2025, marking a 38% year-over-year increase and achieving its sixth consecutive quarter of record deliveries [6] - Lucid's competitors, Rivian and Tesla, reported declines in deliveries during the same period [6] Performance and Market Position - Lucid's stock has significantly underperformed compared to industry peers, with Rivian's shares down 10.7% and Tesla's shares up 0.6% [1] - The company has entered a $300 million deal with Uber to deploy 20,000 Lucid Gravity robotaxis over six years, which is expected to enhance its market presence [9][8] - Lucid is focusing on U.S.-based manufacturing to mitigate tariff impacts and geopolitical issues, including a partnership with Graphite One for domestic graphite sourcing [10] Future Outlook - Lucid anticipates an increase in deliveries driven by the production of a new midsize platform set to begin in late 2026, aimed at expanding its market reach [7] - The company has established partnerships with various firms to enhance its supply chain and reduce reliance on certain metals, which is crucial for its EV production [11] - Despite positive developments, Lucid's stock is considered relatively overvalued with a forward price-to-sales ratio of 2.89 compared to the industry's 2.68 [12] Financial Estimates - The Zacks Consensus Estimate indicates a year-over-year growth of 67.8% in sales and 25.6% in earnings for 2025 [13] - Lucid's long-term debt has increased to $2.04 billion as of June 30, 2025, raising concerns about its financial health [17] - The company has lowered its annual production forecast for 2025 to a range of 18,000-20,000 units due to tariff-related challenges [18]