Here’s Why Lucid Stock Could Double and Jump to $5

Currently, investors may find it surprising that they wouldn’t typically discover stocks with the potential to double soon within the auto industry in the immediate future.

While it’s not wise to make assumptions based solely on first impressions, such as a book’s cover, there is an evolving tale about electric vehicles (EVs) that isn’t moving as swiftly as expected but is steadily expanding. If you seek an EV manufacturer with momentum, it might be worthwhile to cast your eyes upon Lucid Motors (LCID).

Sales race higher

Starting out as a young electric vehicle manufacturer isn’t a walk in the park. You’re aiming to enter a new market, frequently as an entirely fresh label, dealing with low production quantities and high expenses. The automotive sector can be quite tough at this point. To make matters worse, the current government is tossing tariff surprises left and right, making the industry even more complex.

Instead of disclosing this to Lucid, it’s important to note that the young electric vehicle manufacturer achieved a remarkable feat during the second quarter. They surpassed all previous records by delivering a significant number of vehicles. To be precise, they delivered 3,309 vehicles, marking their seventh consecutive quarter with an increase in deliveries compared to the same period last year. This impressive streak seems to have piqued the interest of at least one analyst.

After conversing with LCID’s Chief Financial Officer, Taoufiq Boussaid, on Tuesday and assessing their Q2 production and delivery figures, Mickey Legg, our benchmark analyst, continues to trust the company’s journey towards expansion. (As per the EV blog)

Though Lucid consistently sets new sales records, it must continue to strive towards meeting its own expectations. Lucid aims to manufacture and distribute approximately 20,000 vehicles in 2025. To achieve this goal, they will need to significantly boost their delivery numbers during the second half of the year as they delivered 6,418 vehicles during the initial six months, meaning they’ll have to nearly double their output for the rest of the year.

Given the impending demand, it’s fortunate that Lucid Motors is ramping up production of their Gravity SUV model now, aiming to reach consumers soon after prioritizing orders for employees and dealerships, among other recipients. Interestingly, the Gravity SUV will be offered at a significantly lower price than Lucid’s luxury Air sedans. Moreover, the luxury SUV market is substantially larger compared to luxury sedans, and Lucid anticipates that the potential market for the Gravity SUV could expand approximately six times more than the Air sedan market.

Can Lucid double its stock price?

As I stand by, it appears that for Lucid to double its stock price, reaching approximately the $5 mark as suggested by analyst Legg, there are several key milestones it must accomplish along the way.

Lucid must significantly increase the manufacture of the Gravity SUV and escalate delivery rates, while simultaneously focusing on cost reductions and efficiency improvements to edge towards net profitability, similar to Rivian’s recent accomplishments over two consecutive quarters. Moreover, Lucid needs to persuade investors that it has sufficient funds for survival until breakeven or that its potential justifies further investment.

In an encouraging development, by the close of Q1, Lucid Group reported a total cash reserve of approximately $5.76 billion. This substantial amount is expected to sustain its business operations until mid-2026. Moreover, this financial milestone coincides with the anticipated arrival of Lucid’s medium-sized platform, slated to introduce at least three electric Sport Utility Vehicles (SUVs) for the company.

As a passionate investor, I firmly believe that Lucid Motors holds tremendous potential for doubling its value by 2025, given its momentum and catalysts. However, the current sentiment within the electric vehicle (EV) market, coupled with the administration’s less-than-enthusiastic stance on broader EV support, may make achieving this goal an arduous climb.

2026 could be an exciting year for risk-taking investors, as they may want to monitor the progress of Lucid Motors closely. By then, electric vehicle sentiment might shift and gain momentum, with Lucid’s Gravity model in full production. The buzz surrounding its upcoming midsize SUVs is expected to grow, and if Lucid continues to make strides towards gross profitability while still setting new delivery records, it could potentially reach a share price of $5.

2025-07-20 03:03

Sales race higher

Can Lucid double its stock price?

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