Lucid Is Down in Late Trading -- Is the Stock a Buy Right Now?

Key Points

• Lucid stock initially surged in today's trading following news about its participation in a new domestic mineral-sourcing partnership.

• Investors are taking profit on Lucid on the heels of big gains driven by new partnerships.

• Lucid stock is still a high-risk, high-reward play, but the company's recent partnership wins have the potential to be powerful catalysts.

• 10 stocks we like better than Lucid Group ›

Lucid (NASDAQ: LCID) stock has seen substantial volatility Wednesday, but it's swung to the red in late trading. The company's share price was down roughly 2% as of 3:15 p.m. ET, but it had been up as much as 5.8% earlier in the day.

Lucid stock saw gains early in today's session after the company announced that it had signed on to a new mineral-sourcing initiative. The company published a press release today detailing its collaboration with mineral producers Alaska Energy Metals, Graphite One, Electric Metals, and RecycLiCo for the production of minerals useful to the electric vehicle (EV) industry.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

Despite the seemingly positive development, Lucid's gains receded and the stock has now seen a modest pullback as I write this. Investors may be moving to take profits on recent gains for the company's share price, and it's also possible that some shareholders are concerned about Lucid devoting substantial cash to support mineral-sourcing projects when the company still seems to be far away from profitability.

Is Lucid stock a buy right now?

While Lucid stock has seen some significant volatility today, its participation in mineral-sourcing initiatives looks like a smart move from a long-term perspective. Rising geopolitical tensions between the U.S. and China raise significant questions about whether domestic companies can rely on access to the Chinese mineral market for key components.

Today's mineral news doesn't seem to be a bearish indicator for Lucid, but the company's recent valuation gains still mean that investors should keep their personal risk-tolerance in mind when assessing the stock. The company's share price has surged following news of its robotaxi partnership with Uber and news that its Air vehicles will soon become compatible with Tesla's SuperCharger EV charging network. Recent partnerships have made Lucid a more attractive proposition for risk-tolerant investors, but it's still a speculative play.

Should you invest $1,000 in Lucid Group right now?

Before you buy stock in Lucid Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,023,813!*

Now, it’s worth noting Stock Advisor’s total average return is 1,034% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 21, 2025

Keith Noonan has positions in Uber Technologies. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool has a disclosure policy.