Lucid (US:LCID) The Motley Foolยท2025-09-26 08:20Core Insights - Wall Street analysts are optimistic about Lucid Group's potential for significant sales growth, projecting a 61% increase in sales for the current fiscal year and a further 93% growth next year, totaling a 211% increase over two years [1][5] Company Overview - Lucid Group launched its first vehicle, the luxury sedan Lucid Air, in 2016, with production starting in 2021. The initial price ranged from $140,000 to $170,000, but it has since decreased to around $70,000, with some trims costing nearly $250,000 [3][4] - The company has primarily focused on a single model, the Lucid Air, while competition in the EV market has intensified with many new models being introduced [4][5] Sales Performance - Sales of Lucid Air have been flat from early 2023 through summer 2024, but analysts expect a resurgence in revenue by the end of 2024, driven by the introduction of a new model, the Lucid Gravity [5][6] - The Lucid Gravity, an SUV, is expected to significantly boost sales as SUVs are currently more popular than sedans in the U.S. market [6] Market Challenges - The rollout of the Gravity SUV has faced production issues, leading analysts to lower growth expectations for 2025, although long-term projections remain positive [8] - The starting price of the Lucid Gravity is nearly $80,000, which may limit its market appeal compared to more affordable competitors like Tesla [9][10] Competitive Landscape - Tesla's Model X, a similar luxury SUV, sold approximately 38,000 units globally last year, while Tesla's more affordable models, like the Model Y and Model 3, sold over 1.7 million units combined [10][11] - Tesla's success is attributed to its ability to produce affordable vehicles, a strategy that Lucid is still years away from implementing [12] Valuation Perspective - Despite the anticipated sales growth, Lucid's shares are trading at 7.3 times sales, which may be considered too expensive given the current market dynamics and competition [12]