Forget Lucid Stock and Look at This EV Stock Instead

Core Insights - Lucid Group's stock has declined over 60% since the beginning of the year, significantly underperforming compared to the S&P 500, which has risen approximately 13% during the same period [1] - Despite the bullish long-term outlook for electric vehicles (EVs), maintaining a position in Lucid may not be sensible due to the presence of competitors with clearer paths to profitability [2] Company Performance - Lucid's stock price has seen a dramatic decline, losing over 98% of its value since its peak of $580.50 per share five years ago when it was a SPAC [3][4] - For the quarter ending September 30, 2025, Lucid reported revenue of $336.6 million, a year-over-year increase of more than 68%, but operating cash burn rose to $756.6 million, up 63.5% from the previous year [5] - The company has been relying on dilutive equity sales and convertible bonds, primarily to its majority shareholder, Saudi Arabia's Public Investment Fund (PIF), which has contributed to long-term stock price erosion [6][8] Market Context - Recent changes in U.S. Federal EV policy have caused domestic sales to stall, yet long-term forecasts indicate that EVs will capture a larger share of the vehicle market [9] - Globally, EV sales have increased by 21% this year, indicating a positive trend in the overall market despite challenges faced by individual companies like Lucid [9]