Lucid (US:LCID) The Motley Fool·2026-01-11 13:19Core Viewpoint - Lucid Group is facing significant challenges but may be on the verge of a rebound due to new product launches, strategic partnerships, and a more attractive valuation. Group 1: Financial Performance - In 2025, Lucid Group's share price fell approximately 65%, underperforming competitors like Tesla and Rivian, which saw increases of 11.4% and 48% respectively [1] - The company reported a production increase of 116% to 8,412 vehicles in the fourth quarter, with deliveries rising 31% to 5,345 vehicles, largely attributed to the new Gravity SUV [5] - Lucid's stock has a market cap of $3.76 billion and a price-to-sales (P/S) multiple of 3.12, which is below the S&P 500 average of 3.46 and significantly lower than Tesla's P/S multiple of 16 [9] Group 2: Product Development - Lucid's flagship vehicle, the Lucid Air, has received numerous industry awards for its design and quality, but its high price point has limited its mass market appeal [3] - The introduction of the Gravity SUV, which launched in late 2024, aims to capture a larger share of the U.S. SUV market, which constitutes 52% of new car sales [4] Group 3: Strategic Partnerships - In July, Lucid announced a partnership with Uber to develop a next-generation autonomous robotaxi program, involving the purchase of 20,000 Gravity vehicles over six years and a $300 million investment [6] - This partnership is expected to provide access to the rapidly growing robotaxi market, projected to expand at a compound annual growth rate (CAGR) of 90% from 2025 to 2030 [7] - Despite the potential of the Uber deal, Lucid's stock price has declined by around 65% since the announcement, indicating that the market may be overlooking its long-term value [8]