Yahoo Finance·2025-12-03 16:26Core Viewpoint - U.S. electric vehicle (EV) companies, particularly Lucid Motors, are expected to end 2025 poorly, continuing a downward trend since the peak in 2021 [1] Company Performance - Lucid Motors has seen its shares decline by 57% year-to-date and has fallen every year since its 2021 listing [1][2] - Lucid now trades at a slight discount compared to Rivian, with a forward enterprise value-to-sales multiple of 3.01x, while Rivian stands at 3.16x [2] Industry Challenges - Both Rivian and Lucid are facing similar challenges, including lower-than-expected demand for EVs and the phasing out of the EV tax credit, which previously reduced acquisition costs by up to $7,500 [4] - The EV market is experiencing a price war due to a mismatch in demand and supply, with companies lowering prices to increase shipments [5] - Legacy automakers can absorb losses from EV ventures due to strong earnings from their internal combustion engine (ICE) businesses, unlike startup EV companies [5] Financial Health - Both Rivian and Lucid are struggling with ongoing losses and cash burn, requiring frequent capital raises that dilute existing shareholders [6] - Rivian has demonstrated better performance in profitability and capital management compared to Lucid [6]