Should You Buy Lucid Stock While It's Below $23?

Core Viewpoint - Lucid Group, a luxury electric vehicle manufacturer, has faced significant challenges since its public debut, including overpromising on vehicle deliveries and struggling with competition and supply chain issues, leading to a substantial decline in stock price [1][2][5]. Company Performance - Lucid's stock opened at $25.24 and peaked at $57.75 shortly after going public, but has since fallen to just under $20, with a reverse stock split conducted to manage the decline [1][2]. - The company initially projected deliveries of 20,000 vehicles in 2022, 49,000 in 2023, and 90,000 in 2024, but actual deliveries were only 4,369 in 2022, 6,001 in 2023, and 10,241 in 2024 [3][5]. - As of the latest quarter, Lucid reported a market cap of $6 billion and a gross margin of -9926.30% [7]. Future Outlook - Lucid plans to ramp up production with the Gravity SUV and aims to deliver 18,000 to 20,000 vehicles in the current year, alongside a partnership with Uber for deploying autonomous vehicles [8][10]. - The company is set to launch a new lower-priced SUV, the Lucid Earth, in 2026, which could enhance its competitiveness against Tesla [9]. - Analysts project Lucid's revenue to grow from $808 million in 2024 to $4.87 billion by 2027, with expectations of narrowing net losses from $3.06 billion to $1.79 billion in the same period [11][12]. Investment Sentiment - Supporters of Lucid believe that new models and partnerships will attract customers and that backing from Saudi Arabia's Public Investment Fund will aid in production expansion [7][10]. - Critics argue that scaling operations in a saturated market will be challenging, especially without the early advantages that competitors like Tesla had [13][14]. - The company needs to deliver over 8,500 vehicles in the fourth quarter to meet its annual forecast, which presents a significant challenge [16].