Lucid Group Shares Experience Volatility Following SUV Deliveries

Lucid Group (NASDAQ: LCID) shares are experiencing significant volatility today following the company's announcement that it began delivering its electric Gravity SUV over the weekend.

What You Should Know: This news marks Lucid's entrance into the competitive electric SUV market, positioning the Gravity as a direct competitor to Tesla's Model X.

Lucid shared the news of the initial Gravity SUV deliveries via a post on social media platform X, complete with a video showing customers collecting their vehicles from the Casa Grande, Arizona factory. The Gravity is offered in a Grand Touring trim with a starting price of $94,900, aiming to attract a wider range of customers compared to Lucid's previous product, the Air sedan. The company is also planning to launch a more affordable Touring trim, set to begin production in late 2025, with a base price of $79,900.

According to Lucid CEO Peter Rawlinson, the Gravity is designed to tap into a market that is six times larger than the segments targeted by the company's earlier models. He emphasized that the Gravity is a three-row SUV created to compete with, and potentially outperform, the Tesla Model X. However, despite this significant product launch, Lucid continues to face hurdles, reporting a third-quarter adjusted loss of 28 cents per share and maintaining a status of being unprofitable.

The company has plans for continued expansion, with the introduction of a midsized vehicle platform priced around $48,000, expected to go into production in late 2026 as a competitor to Tesla's Model 3 and Model Y.

Currently, Lucid's shares have decreased by over 24% year-to-date, with analysts providing a consensus price target of $5.04 for the stock. This price target stems from varying analyst projections, predicting a high of $12 and a low of $2, which reflects ongoing uncertainty regarding Lucid's profitability and its ability to gain market traction.

LCID Price Action: On the trading front, Lucid Group shares initially rose by 1.31% before dropping by 3.02% to a price of $3.05, according to data from Benzinga Pro.

Lucid, SUV, Tesla