Down by Over 40% Year-to-Date, Is there A Way Back Up For Lucid Stock?

Lucid Group stock has cracked under pressure in 2025. As of early September, shares were down more than 40% year-to-date and had just hit fresh all-time lows of $17.36 as of this writing, when adjusted for the split. Following the execution of a 1-for-10 reverse stock split on September 2, 2025, the stock experienced a sharp drop of over 10%.
Lucid’s stock used to be a favorite in the luxury EV market, but it has dropped from an all-time high of nearly $58 in 2021 to a small fraction of that value. This big decline has left investors with a pressing question: Why is Lucid (NASDAQ: LCID) stock going down, and is there a way for it to come back?

Why Has Lucid Stock Dropped?

Several operational and commercial reasons have made the decrease worse:

• Financial Shortfalls: The company’s second-quarter revenue was $259 million, which was less than the $280 million that analysts had expected. In addition, the net loss grew from $790 million a year earlier to $855 million. Meanwhile, concerns about the EV industry as a whole, such as waning demand and competition from established companies like Tesla, have hurt sentiment.
• Production struggles and lower guidance: Lucid has had a lot of trouble because it hasn’t been able to regularly reach its production and delivery goals. As part of its SPAC merger, the corporation set lofty goals for vehicle manufacturing when it went public. But it has failed to reach these goals time and time again. For instance, it manufactured slightly over 9,000 cars in 2024, which is a big variance from its original estimate of 90,000 units in 2020.
  
  Investors have lost confidence because of these failed targets and ongoing problems with the supply chain. Lucid lowered its production goal for the whole year of 2025 from about 20,000 to 18,000–20,000 vehicles due to challenges with the supply chain, market instability, and tariffs.
• Pressure from the broader market and short selling: Short interest has had an effect on the stock, and the resulting sentiment could make dips worse. Also, Lucid has a history of releasing bad news (like forecast cuts) to coincide with price rallies. That has frustrating retail investors and created the perception that management is triggering Lucid stock price volatility.

• Bigger Market and Short-Selling Pressure: Short interest has affected the company, and the sentiment resulting from that gamble could worsen the drop. Also, Lucid has a history of releasing bad news (like forecast cuts) to coincide with price rallies. That has frustrated some retail investors created the perception that the management has contributed to the Lucid stock price volatility.
• Trends Over the Year: Due to supply shortages, unfavourable marketplace conditions for electric vehicles, and continuing production ramps for models like the Gravity SUV, shares fell 30.1% in just the first half of 2025. Analysts have become less optimistic. For instance, Stifel, slashed its Lucid stock price projections by 30%.
  

Chart showing Lucid stock price decline since late July. Source: TradingView

Is there A Way Back Up?

Lucid’s stock performance paints a bleak picture, and recovery could be hard, but there is a pathway for the company to rebound. Turning the tide would require capitalizing on the company’s multiple strengths.

The most important of these is its technology. Many people appreciate Lucid for its superior battery technology and economical powertrains. Its vehicles have a longer range and better performance than many of its competitors. This level of technological expertise gives the corporation a big edge over its competitors, and it is already using it to its advantage through partnerships.

Second, even though the projection was trimmed, Q2 deliveries jumped 38.2% year-over-year to 3,309 vehicles, setting a record for the sixth month in a row. The launch of the Gravity SUV could add to its lineup, and the company is working to localise its North American suppliers in an effort to reduce tariff and alleviate supply chain pressures.

Third, Lucid is working hard to grow its business and deliver new products. The company’s new factory in Saudi Arabia is a key part of its plan to grow geographically. Once developed, it could produce up to 155,000 vehicles a year. This expansion, together with the potential release of a more affordable midsize EV platform in the next several years, could help Lucid reach more customers.

Having said that, there is no certainty that recovery will happen. It depends on more people buying EVs, handling losses and dealing with competition.

In Conclusion

Lucid stock price decline is a complicated combination of failing to meet production goals, an extended period of loss-making and a tough market. The company’s future success depends on its capacity to grow from a promising startup to a large-scale manufacturing. This means not only increasing production of its best-selling models, but also demonstrating that it can keep costs under control and make profits.

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