Why Lucid Stock Jumped Today: Reviewing the Gravity SUV

Lucid (LCID) saw a significant rise in its stock price during the latest trading session, climbing by 4.5% and even reaching a peak of 7% earlier in the day.

This positive momentum can largely be attributed to the early critical acclaim for Lucid's newest offering, the Gravity SUV. This marks the first venture into the SUV market for the luxury electric vehicle manufacturer, with the Grand Touring models priced starting at $94,900. The company also has plans to introduce a more affordable version of the Gravity next year.

Positive Reviews for the Gravity SUV

Last week, Lucid announced that it had begun production of the Gravity SUV at its Arizona manufacturing plant. Just this Tuesday, they revealed that the Environmental Protection Agency (EPA) has certified the vehicle with an impressive range of 450 miles on a single charge. With the vehicle now in the hands of auto reviewers, the initial feedback has been largely favorable.

InsideEV recently published an overview of its experience with the Gravity SUV, noting that despite a brief encounter with the vehicle, the reviewer was impressed. They described the SUV as "fun to drive, pleasant to spend time in, and having extremely impressive specs across the board." Furthermore, well-known automotive magazines like MotorTrend, Car and Driver, and Edmunds shared their thoughts on the Gravity on Tuesday. MotorTrend pointed out that the Gravity represents a notable shift from Lucid's previous model, the Air sedan, while still maintaining the company's signature attributes of superior range, innovative design, and exceptional performance. In a similar vein, Car and Driver emphasized that the SUV offers improvements over the Air, and Edmunds proclaimed that it sets a new standard for electric SUVs.

Future Prospects for Lucid

The Gravity's launch is crucial for Lucid as it marks the brand's entrance into the SUV segment. While the Air sedans received positive feedback, sales have been lower than anticipated. In the third quarter of this year, the company sold 2,781 vehicles, which is about a 90% increase from the previous year. However, this growth was partly due to price reductions and still falls short compared to competitors in the electric vehicle market. Additionally, Lucid reported a net loss of approximately $992.5 million in the same quarter.

Moving forward, Lucid's success relies on boosting demand and scaling production efficiently to reduce manufacturing costs, which is essential for achieving profitability on vehicle sales. Although the company has a considerable journey ahead, the Gravity SUV has the potential to outperform the Air, thereby helping to broaden Lucid's sales footprint significantly.

Lucid, SUV, Stocks