Why Lucid Stock Investors Are Pumping the Brakes Today

Key Points

• Lucid failed to meet analysts' revenue and loss per share estimates.

• Investors are also concerned that the company lowered 2025 production volume expectations.

• Despite the sore spots in the financial results, Lucid had positive news to report as well.

• 10 stocks we like better than Lucid Group ›

Luxury electric car (EV) maker Lucid (NASDAQ: LCID) reported second-quarter 2025 financial results yesterday after the market closed, and while the company reported some encouraging news, investors don't seem impressed.

As of 10:17 a.m. ET, shares of Lucid are down 7.5%, paring back the earlier slide of 10.7%.

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Missing analysts' estimates isn't the only thing failing to charge up investors' spirits

Coming up short of analysts' revenue expectations of $262.6 million for Q2 2025, Lucid reported sales of $259.4 million. The bottom line of the income statement provided further disappointment. Whereas the consensus among analysts was the Lucid would report a $0.22 loss per share, the company posted a $0.28 loss per share.

Another source of consternation for investors is the fact that Lucid reduced its production volume. Instead of projecting 2025 production volume of about 20,000 vehicles, management now forecasts the company will produce 18,000 vehicles to 20,000 vehicles. Without providing much detail, management attributed the downwardly revised forecast to "reflect the potential impact of continuously changing market environment and external factors."

After a weaker-than expected earnings report, is now the time to hitch a ride with Lucid stock?

Clearly, investors are acutely focused on the company's inability to meet analysts' estimates and the lower 2025 production volume expectations. But there were some bright spots as well that bear recognition. Lucid reported a record for quarterly revenue in Q2 of $259.4 million, and it achieved its sixth consecutive quarter of record deliveries, with Q2 2025 deliveries growing 38% year over year.

While the bears outnumber the bulls today, Lucid still turned in a pretty good quarter. The reduced production volume forecast is bearable in light of its consistent growth in delivering vehicles overall. The market's overreaction today provides a great entry point for new investors seeking EV exposure to buy Lucid stock.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.