The share price of luxury electric vehicle (EV) manufacturer Lucid Motors (NASDAQ: LCID) has experienced a rollercoaster run in 2024, affected by internal operational woes and external market dynamics. The coming year offers another opportunity for the firm to turn things around.
The year started with the stock plummeting to new lows, over 90% down from its peak, as early delivery numbers disappointed. For most of the year, LCID share price consistently faced the threat of dropping below the $2 mark but has shown strength in the short term.
At the end of the December 20 trading session, LCID was valued at $3.02, rising by 14.8% for the day. However, LCID was in familiar territory at press time, trading in the red valued at $2.96, down over 1% from the last market close.
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Indeed, the company’s struggles in 2024 are highlighted by the fact that the stock has plunged by almost 30% year to date.
Sentiment around the stock’s long-term outlook was dampened by institutional interest when Lucid witnessed a major vote of no confidence after the world’s largest investment company, BlackRock (NYSE: BLK), offloaded a massive 2 million shares.
Lucid’s stock fundamentals for 2025
Looking at the Lucid stock outlook for 2025, the company’s fundamentals remain shaky, especially from a financial perspective.
Notably, the EV maker’s stock could be hit with further bearish sentiment, considering that Lucid continues to operate at a loss. The firm reported a larger-than-expected loss of $992 million for dQ3 2024, up from a $631 million loss in the same period last year.
Lucid is still in its infancy and profitability might not be on the horizon, the losses raise concerns about its path to profitability.
However, Lucid’s estimates show strong revenue growth and narrowing losses. Q4 2024 EPS is projected at -$0.26 compared to -$0.30 last year, with revenue up 26.8% to $199.33 million.
Q1 2025 revenue is forecasted to grow 46% to $252.18 million. For 2024, revenue is expected to rise 28.8% to $766.77 million, improving to $1.74B in 2025 as EPS narrows to -$0.90, signaling progress.
Vehicle production for luxury EV maker
At the same time, vehicle production increased by just 16%, totaling 1,805 vehicles. Its 2024 production target of 9,000 units represents a modest rise from last year’s 8,428.
Overall, past earnings reports for Lucid have shown more consistent delays in production and supply chain disruptions, which has resulted in uncertainty about its ability to meet delivery targets.
The company also issued 262 million new shares, diluting shareholder value, and secured $1.5 billion in additional funding from Saudi Arabia’s Arabia’s Public Investment Fund (PIF), which ensures operations through 2026. In 2025, reliance on external financing and widening losses could affect LCID stock performance.
At the same time, Lucid faces intense competition from established entities such as Tesla (NASDAQ: TSLA) and new entrants in the EV market. While known for long-range luxury vehicles, scalability and profitability remain key challenges. To succeed in a market dominated by Tesla, Lucid must scale production, reduce costs, and expand beyond the luxury segment.
Amid these challenges, Lucid seeks to capture the broader market by introducing new vehicle lineups, such as the Gravity Grand Touring SUV, priced at $94,900, which is critical to its success.
Wall Street’s take on LCID stock
A review of Wall Street analysts indicates that most experts have been cautiously optimistic or neutral regarding Lucid’s stock performance.
For instance, on November 21, BofA Securities lowered its price target for Lucid from $3.40 to $2.80, maintaining a ‘neutral’ rating due to market pressures and challenges in meeting growth expectations.
On November 19, RBC Capital Markets slashed its target from $3.00 to $2.00, signaling limited upside. However, on November 11, R.F. Lafferty upgraded Lucid from ‘hold’ to ‘buy’, setting a $4.00 target, citing long-term potential despite recent struggles.
Lucid 2025 verdict
In the current state, Lucid’s stock remains highly uncertain for 2025, with weak fundamentals, ongoing production delays, and intense competition. While the potential exists in the luxury EV segment, profitability and scalability are significant challenges for the company.
The volatile stock makes it hard to predict its future, but it may appeal to high-risk investors. Hence, 2025 could go either way.
Featured image via Shutterstock
