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Tesla’s deliveries disappointed — again. Coming in way below Street estimates, the Elon Musk-led company reported just 336,681 deliveries in Q1 2025, a drop of 13% from the prior year. Production also slid to 362,615 vehicles from 433,371 vehicles in the year-ago period.
As Musk remains mired in politics and Tesla’s electric vehicles remain under intense competitive pressure, clouds of doubt continue to hover over the company in the short and medium term.
However, in such a scenario, is the sole way out to bet on EVs then through the Chinese company BYD (BYDDY)?
Not really. One EV rival with substantial manufacturing in the United States has been gaining customers from Tesla recently and may emerge as an alternative pick for investors looking to benefit from the EV race.
About Lucid Stock
Founded in 2007, Lucid (LCID) is an EV maker specializing in luxury vehicles. Its market cap currently stands at $7.3 billion.
Shares of Lucid are down 21% on a year-to-date basis.
Amid the turmoil around Tesla, the interim Lucid Motors CEO Marc Winteroff said in a recent interview that right now “50% of all of the orders we have are from former Tesla owners” with a “dramatic uptick over the past two months” in orders from former Tesla drivers.
Although Lucid has a relatively minuscule share in the U.S. EV market, it delivered a record number of vehicles in 2024. So, does Lucid have what it takes to leverage Tesla’s problems and emerge as a formidable player in the burgeoning EV market? Let’s find out.
Steady Financials
Yet to be profitable, Lucid reported a narrowing of losses in the most recent quarter, which also exceeded Street expectations. Revenues grew by 49.2% from the previous year to $234.5 million after deliveries went up by 79% in the same period to 3,099 vehicles. The loss per share came in at $0.22, lower than the prior year’s figure of $0.29 per share. The Street estimate was for a loss of $0.25 per share.
Although net cash used in operating activities increased to $533.1 million from $474.5 million in the year-ago period, Lucid’s overall cash balance improved to $1.6 billion from $1.4 billion in the previous year. This was much above the company’s short-term debt levels of just $6.8 million.
Overall, the company is aiming to produce 20,000 vehicles in 2025, which would be a significant uptick from 2024’s figure of 9,029 vehicles.
Probable Tailwinds
Lucid appears well-positioned to capitalize on the growing divide between Elon Musk and certain Tesla customers, as its vehicles cater to the premium segment of the market. Lucid stands to attract a portion of these buyers by offering an alternative that aligns with their expectations of luxury and performance.
Both the Lucid Air and the upcoming Lucid Gravity embody a high-end design philosophy, reinforcing the brand’s commitment to luxury. With deliveries of the Gravity set to commence in the near future, Lucid is poised to strengthen its presence in the premium EV space.
Manufacturing operations within the United States provide an additional layer of stability for Lucid, particularly in light of the pro-domestic manufacturing stance likely to persist under President Donald Trump. This positioning minimizes potential regulatory challenges and strengthens the company’s long-term outlook.
Beyond vehicle sales, Lucid holds a strategic opportunity in battery technology licensing, given its claims of having the lowest battery pack cost per mile of range in the industry. If successful, this could serve as an additional revenue stream and competitive advantage.
However, despite these strengths, Lucid faces significant challenges, including its focus on a niche market, the complexities of scaling production, premium pricing compared to rivals, and ongoing profitability concerns. Addressing these obstacles will be crucial for Lucid as it seeks to establish a lasting foothold in the EV sector.
Analyst Opinions on LCID Stock
Taking all of this into account, analysts have deemed the stock a “Hold” with a mean target price of $2.67. This denotes upside potential of about 11.3% from current levels. Out of 13 analysts covering the stock, two have a “Strong Buy” rating, nine have a “Hold” rating, one has a “Moderate Sell” rating, and one has a “Strong Sell” rating.
