Why Lucid Group Stock Is Plummeting Today

Key Points

• Lucid reported a larger-than-expected loss on smaller-than-expected sales.

• The company's launch of its Gravity SUV is lagging behind expectations.

• 10 stocks we like better than Lucid Group ›

Shares of Lucid Group (NASDAQ: LCID) are falling on Wednesday. The luxury electric vehicle (EV) maker's stock had dropped 9.3% as of 3:04 p.m. ET. The fall comes as the S&P 500 and Nasdaq Composite were up by 0.7% and 1.1%, respectively.

The stock is seeing a retreat after the company released its latest earnings report, underwhelming investors.

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 »

Lucid's Gravity SUV sales aren't where they need to be

The company's quarterly report revealed soft sales of its new Gravity SUV, a critical product for Lucid's turnaround efforts. The less-than-hoped-for SUV sales meant the company missed Wall Street's targets on its top and bottom lines. Lucid reported a loss of $0.24 per share on $259 million in sales when a loss of $0.21 per share on $280 million was expected.

Image source: Lucid Group.

CEO Marc Winterhoff addressed his frustrations with the performance, telling Yahoo! Finance: "This is something I've said before, and I say it again, we're not where we want to be with the Gravity at this time of the year. We actually wanted to be ahead, making significant ... progress every day," He said that the company's SUV sales would ramp up "drastically" in the second half of the year and help improve the lackluster numbers.

Challenges remain

Expectations for Lucid's early sales of Gravity weren't out of reach by any means. The fact that the company wasn't able to hit them speaks to the difficulty of selling high-priced EVs in this market. Demand for EVs and luxury goods isn't particularly strong at the moment, and competition continues to heat up from Chinese operators. I have serious doubts Lucid can execute a turnaround.

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 $619,036!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,092,648!*

Now, it’s worth noting Stock Advisor’s total average return is 1,026% — 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 August 4, 2025

Johnny Rice 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.