The downward spiral of Lucid Group’s stock price has transformed what was once a Wall Street darling into a borderline penny stock investment. LCID shares have plummeted from their all-time high of over $55 to a dismal 52-week trading range of $1.93-$4.43, representing a staggering 96% decline. Recent daily lows near $2.47 indicate persistent weakness, with analyst price targets averaging just $2.38 per share, suggesting limited upside potential of approximately 14%.
Despite posting improved financial results in Q4 2024, with revenue of $234.5 million representing a 49% year-over-year increase and exceeding analyst expectations by $22.7 million, Lucid continues to hemorrhage cash. The company’s loss per share of $0.22, while better than estimated, still highlights the challenging path to profitability that lies ahead. President Trump’s recently implemented 25% tariffs on imported automobiles could further complicate Lucid’s financial outlook.
Lucid’s impressive revenue growth masks an unsustainable burn rate that threatens its long-term viability in the competitive EV landscape.
I’ve observed similar patterns with other EV startups that initially attract significant investor interest but struggle when facing production realities. This contrasts sharply with BYD’s impressive market leadership position with 1.1 million units sold in 2025.
Vehicle production reached 9,029 units in 2024, with deliveries totaling 10,241—a 71% year-over-year increase that demonstrates some operational improvement. The recent acquisition of Nikola’s assets in Arizona represents a strategic expansion of manufacturing capabilities. The company’s ambitious target of nearly 20,000 vehicles for 2025 will test its manufacturing capabilities and market penetration strategy. The upcoming Gravity SUV could provide a vital volume boost if properly executed.
Lucid’s financial sustainability hinges on continuous capital infusions, having raised approximately $4.2 billion in new financing during 2024. The Saudi PIF remains the company’s financial lifeline, though this relationship comes with significant shareholder dilution concerns. At the current burn rate, additional capital raises seem inevitable.
Wall Street sentiment tilts negative, with a consensus “Moderate Sell” rating based on 1 Buy, 5 Hold, and 4 Sell recommendations. Recent stock price increases of 5.15% reflect speculation rather than fundamental improvement.
Lucid’s trajectory toward penny stock territory appears difficult to reverse without dramatic operational improvements or technological breakthroughs that can be monetized beyond their luxury EV lineup.
