Key Metrics for Lucid Group Investors to Monitor

Electric vehicle (EV) investors who have chosen to invest in Lucid Group (LCID -0.96%) need to keep track of various important metrics, including the quantity of vehicles produced, the number of vehicles delivered, and key figures in financial statements.

However, in the coming months, it is essential for Lucid investors to focus on one particular figure -- a critical indicator for a growth company like Lucid.

Keep an Eye on Capital Expenditures

Lucid has achieved a remarkable 74% increase in vehicle deliveries year-over-year for 2024, showcasing its ability to attract customers with its luxury EVs. The company is, however, aggressively pursuing further growth by expanding its product line. Notably, Lucid intends to launch three midsize models, with production of the first model set to begin in late 2026.

To gain insights into Lucid's advancement towards this goal, investors should closely monitor its capital expenditures, commonly referred to as capex, in the upcoming quarters. During its recent fourth-quarter conference call, management projected capex for 2025 to be around $1.4 billion as the company continues to develop its AMP-1 and AMP-2 manufacturing facilities in Arizona and Saudi Arabia, respectively, which will be responsible for producing the new midsize vehicles.

The successful production of these midsize vehicles is crucial for Lucid's long-term success. The company sees the midsize vehicle segment as a key opportunity to broaden its customer base, given the lower starting price point, which is approximately $50,000, compared to its Lucid Air sedan and Gravity SUV. Additionally, many vehicles included in its agreement for 100,000 vehicles with Saudi Arabia will be Gravity and midsize models.

Low Capex Spending Could Signal Problems

Instead of simply accepting management's guidance, investors must pay attention to Lucid's capital expenditures in the coming quarters. If the company fails to meet the anticipated $1.4 billion capex, it could indicate delays in the production start of the midsize vehicles and possibly signal further challenges ahead.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Investors, Vehicles, Growth