Lucid Group Shares Surge as Production of Gravity SUV Begins

Lucid Group, Inc. (NASDAQ: LCID) shares experienced a rise on Friday as the company announced the commencement of production for its second vehicle, the Gravity SUV. This development has excited investors and raised hopes for the company’s future.

What to Know: Lucid Group shared a video on social media featuring CEO Peter Rawlinson driving the Gravity SUV inside the factory. The company describes this milestone as a significant achievement, highlighting the hard work of its team in bringing this vehicle to life.

Lucid has started taking orders for the Gravity, beginning with the Grand Touring trim at a price of $94,900. Production for the more affordable Touring trim, which is priced at $79,900, is expected to kick off in late 2025. The Gravity SUV is set to compete with Tesla's Model X, which starts at $79,990 for its base model and $94,990 for the premium Plaid version.

According to Rawlinson, the Gravity SUV enters a marketplace that is six times the size of that for the company’s first vehicle, the Air sedan. He noted that the Gravity is designed to offer a more traditional three-row SUV experience in contrast to the Model X, which Rawlinson characterized as having a more “car-like” feel.

In addition, Lucid has plans to manufacture a midsized platform vehicle expected to retail around $48,000 by late 2026. This model aims to compete with Tesla’s more affordable Model 3 and Model Y offerings. However, despite these ambitious plans for expansion, Lucid continues to face financial challenges, having reported an adjusted loss of 28 cents per share for the third quarter of 2024.

As of now, Lucid shares have fallen nearly 50% year-to-date. Analysts hold a consensus rating of "Neutral" for the stock, with target prices ranging from $2 to $12. The average target from recent analyst assessments stands at $3.33, suggesting the potential for a 59% increase from current share values.

Current Stock Performance: As of the latest data, Lucid Group shares rose by 7.89%, priced at $2.255, as noted by financial news sources.

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Lucid, SUV, Stocks