Why Lucid Stock Still Looks Too Risky for Long-Term Investors​

Core Viewpoint - Lucid Motors, an electric vehicle manufacturer, is facing significant financial challenges despite having promising products and a growing revenue stream [1][3]. Financial Performance - Revenue for Q3 2025 increased by 68.5%, rising from $200 million in Q3 2024 to $337 million [3]. - The cost of revenue also surged from $412 million to $670.2 million, a 62% increase, leading to a net loss of $978.4 million for the quarter [5]. - Lucid's cash reserves decreased from $5 billion at the beginning of 2025 to $2.99 billion by September 30, 2025, while liabilities stood at $5.1 billion [4]. Competitive Position - Lucid's net income margin is -214%, significantly worse than Rivian's -61% and Tesla's positive 5.3% [6]. - Despite the increase in revenue, Lucid's financial position remains weak compared to its competitors, with rising costs nearly matching revenue growth [7].