Electric vehicle giant Tesla Inc. TSLA and CEO Elon Musk had grand ambitions with the launch of the Cybertruck. Expectations have underperformed, but there could be good news with the vehicle expanding to more international markets.What Happened: Tesla officially launched the Cybertruck in November 2023, and for the first two years, the vehicle was only sold in North America.The electric vehicle company is now branching out to other parts of the world with the recent launch of the Cybertruck in South Korea ...

Auto industry titan Henry Ford once said, “A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large.” So it goes in the increasingly lucrative auto parts industry, where the auto aftermarket sector is set to expand by 5.1% in 2025 (to $413.7 billion), after growing by 5.7% in 2024, according to S&P Global Mobility. Industry analysts point to multiple reasons for the auto parts market’s burgeoning growth rate. For starters, U.S. vehicle owners ar ...

Group 1: Tesla's Challenges - Tesla's shares have decreased by 45% from a mid-December peak of $488.54, facing volatility amid criticism of Elon Musk's political affiliations [1] - The company reported a 13% decline in vehicle sales for the January-March quarter, marking its worst performance since 2022, attributed to an aging vehicle lineup and increased competition [2] - Vehicle sales in Europe have suffered, and the Cybertruck was recalled in the U.S., while potential buyers are holding off on the Model Y due to an anticipated upgraded version [3] Group 2: Lucid's Opportunities - Tesla's issues have led current Tesla owners and potential buyers to consider alternatives like Lucid, which has seen a significant increase in orders from Tesla owners, accounting for nearly half of its EV orders [4] - A small decline in Tesla's demand could greatly benefit Lucid; for example, a 1% loss in Tesla's 1.8 million vehicles sold in 2024 could mean 18,000 potential buyers for Lucid, which sold only 10,000 vehicles last year [5] - Lucid aims to double its vehicle sales to 20,000 by 2025, a target that seems feasible given its sourcing of spare parts from the U.S., which may not be affected by new tariffs [6] Group 3: Lucid's Financial Performance - Lucid reported revenues of $807.8 million in 2024 but faced a negative gross profit of $923.1 million, with a net loss of $636.9 million for the quarter ending December 31 [8] - The company's net profit margin stands at negative 335.9%, significantly below the Automotive - Domestic industry average of 4.4%, indicating a need for increased production to achieve profitability [9] - Lucid must focus on producing affordable EVs to reach a broader market, rather than relying solely on its $79,900 Gravity SUV aimed at niche customers [10] Group 4: Market Outlook for Lucid - Analysts are optimistic about Lucid's growth potential, raising the average short-term price target for LCID stock by 11.7% to $2.68, with a highest target of $5, representing an upside of 108.3% [7]