Why is Lucid not doing well?
Key Points. Lucid, as a company, has potential, and its products are solid, but its financial position is rough. The company is growing its revenue, but its costs are going up almost as quickly. Lucid has the worst profit margin and a weak cash position compared to competitors like Tesla and Rivian. Lucid has plans to start selling lower-priced vehicles, a path that is similar to that taken by Tesla. So there are reasons to be excited about Lucid’s future. However, there’s a lot more competition in the EV market today than there was when Tesla essentially created the EV category.Lucid Group, Inc. American automotive and technology company that manufactures electric vehicles and supplies advanced electric vehicle powertrain systems.
Is there any future for Lucid?
Lucid has a market capitalization of roughly $3. As a result, the company will likely continue to lean heavily on funding from Saudi Arabia’s Public Investment Fund (PIF). Saudi Arabia’s Public Investment Fund (“PIF”) remains Lucid’s largest shareholder, holding more than 50% of the company. Since 2018, PIF has invested more than $8 billion in Lucid, providing long-term financial backing and reinforcing confidence in the company’s global manufacturing and expansion plans.Both Lucid and Uber share a powerful common investor, Saudi Arabia’s Public Investment Fund (PIF). The PIF owns ~60% of Lucid and ~3. Uber. To date, the PIF has invested over $8 billion into Lucid, more than Lucid’s current market cap of ~$7.
Why is Lucid falling?
There are a few key reasons behind company’s valuation slide over the last 12 months of trading. For starters, Lucid’s business has continued to post huge losses. The company has also continued to raise funds by selling new stock to its largest shareholder — Saudi Arabia’s Public Investment Fund (PIF). Lucid has significant losses and minimal revenue Growth companies typically don’t generate significant profits when they’re just getting started, and that’s been true for Lucid. The company’s third-quarter 2025 net loss was approximately $1 billion, a very substantial amount.In short, the stock has been smoked since going public in 2021. So far, Lucid has not been a good investment.