Electric vehicle (EV) maker Lucid Group (NASDAQ: LCID) reported some good news recently; vehicle production and deliveries both increased significantly in 2024. As a result, Lucid’s stock got a jolt as some investors grew more optimistic about the company’s future.
But Lucid is still fighting an uphill battle in the EV market at a time when almost all electric vehicle makers are trying to boost sales. With the EV market in flux, let’s take a closer look at the reasons to buy, sell, or hold Lucid.
I think there’s a pretty compelling case for holding on to Lucid’s shares. First, Lucid makes a great product. The company’s Air sedan is an award-winning, high-end vehicle that’s received plenty of accolades. Lucid’s vehicles boast impressive features, like the longest EPA-estimated range of any EV on the market (516 miles!).
The company also recently reported solid vehicle production and delivery numbers. Lucid produced 9,029 vehicles in 2024, an increase of 7% from the previous year, and deliveries jumped 71% to 10,241 vehicles. While still relatively small compared to many other automakers, Lucid is making some progress on the delivery and production front.
Additionally, Lucid just started production of its Gravity SUV. The new vehicle means that Lucid will now sell EVs in two distinct automotive categories (sedans and SUVs), and that could help the company lower costs by sharing parts across models. There’s no guarantee that its Gravity SUV will be a hit, but shareholders may want to stick around and see what happens.
Lastly, and perhaps most importantly, Lucid CEO Peter Rawlinson said in a recent Bloomberg TV interview that he’s had a couple of conversations with automakers about a potential partnership. Specifically, Rawlinson said: “It would be lovely if we could supply technology to a traditional car company to help them on their way to sustainability, and perhaps we can leverage economies of scale with their parts bin and other aspects of the business.”
It’s common for automakers to partner with each other to share parts in order to lower costs. Lucid’s losses were $992 million in the third quarter (ended Sept. 30, 2024), so a potential partnership could go a long way in helping the company dig itself out of that hole.
There are a handful of reasons for deciding to sell a stock, including:
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Rebalancing your portfolio
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Needing the money for something else (like a house downpayment)
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The original thesis for buying the stock has changed
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You’ve identified better investment opportunities
