Luxury electric vehicle (EV) manufacturer Lucid Motors (NASDAQ: LCID) has had a bumpy ride since its initial public offering (IPO) in 2021. Despite securing significant investments from Saudi Arabia’s Public Investment Fund (PIF), the carmaker has been beset by a variety of challenges.
Most importantly, Lucid has continuously struggled to meet production and delivery quotas. In tandem with this, stock dilution has been at play — with the company issuing more and more shares to raise capital.
At press time, a single Lucid share was trading at $3.18. Since the beginning of 2024, the price of LCID stock has decreased by 12.15% — although a look at the 1-year price chart reveals two notable peaks in July and August.
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While it seemed almost certain that it would become a penny stock at one time, Lucid stock has managed to mount a significant recovery. Should it manage to reclaim previous highs, Lucid’s next stop would be the $5 mark — but can it reach such a high price in 2025?
Lucid stock can reach a price of $5 — but several issues have to be resolved
To reach a price of $5, LCID stock would have to see a 57.23% rally from current prices. While that might seem a tad ambitious, the company’s latest earnings call, covering Q3 2024, saw significant outperformance in key financial metrics when compared to analyst estimates.
What’s more, on January 6, the carmaker released its Q4 production and delivery results. Over the course of the quarter, Lucid produced 3,386 vehicles and delivered 3,099 of them. On a yearly basis, the business produced 9,029 vehicles and delivered 10,241 — outpacing its own guidance for the first time since 2022.
There are a couple of additional bullish factors at play. As a luxury vehicle maker, Lucid’s products are mostly immune to the proposed EV credit cuts — as the company’s cars weren’t eligible for them in the first place. In addition, the launch of the company’s Gravity SUV model is expected to provide a crucial source of revenue in 2025.
The $5 mark would represent a much more modest 17.37% upside from the $4.26 yearly high that Lucid stock reached on August 26, 2024 — and if the trajectory that it has been on continues, it would not be unreasonable to assume that those price points could be retested in the first half of 2025.
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