Will the Gravity X Give Lucid an Edge Over Its Competitors?

Lucid Group, Inc. LCID has introduced its most adventurous model yet, the Lucid Gravity X. Hyped as “a bold new concept of electric exploration,” the Gravity X builds on the foundation of the Gravity Grand Touring, which offers up to 450 miles of EPA-estimated range, all-wheel drive and 0-60 mph acceleration in 3.4 seconds.

The Gravity X takes things further with a fresh design, higher ground clearance and enhanced off-road capabilities. It features improved approach and departure angles, all-terrain tires, protective skid plates and tow hooks. The concept also comes with an integrated crossbar fitted with LED lights and a roof box.

Per Lucid, every detail on the new concept, from the Astral Drift satin paint finish to hood graphics inspired by Big Spur and Death Valley, was pre-planned. The interior of the vehicle boasts upgrades such as premium leather seating, high-performance floor mats and a microsuede steering wheel. Positioned as the ultimate adventure EV, Lucid describes the Gravity X, short for Gravity Cross. 

The appeal of the Gravity X is not limited to its rugged styling, but it extends beyond it and signals Lucid’s evolving identity. More luxury EV buyers now want vehicles that balance weekday sophistication with weekend adventure capability. 

If Lucid decides to put the Gravity X into production, it would enter the niche but expanding segment of adventure-focused electric SUVs. This could turn out to be a strategic step, giving Lucid a competitive response to rivals, like Rivian Automotive, Inc. RIVN, that already emphasize off-road capabilities as a key feature. LCID carries a Zacks Rank #3 (Hold) at present. 

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Rivian has designed R1S for both everyday roads and off-road use. The R1S supports Level 3 semi-autonomous driving. It is a fully electric, mid-size SUV with seating for seven. After a decade of development, customer deliveries of R1S began in 2022. The 2022 model received an EPA rating of 69 MPGe in combined city and highway driving and offers up to 316 miles of range with the 135 kWh “Large” battery and quad-motor setup.

LCID’s Price Performance, Valuation and Estimates  

Lucid has underperformed the Zacks Automotive-Domestic industry year to date. Its shares have lost 30.8% compared with the industry’s decline of 16.5%. LCID has also underperformed the U.S. EV giant Tesla, Inc. TSLA, which has lost 20% over the same period.

YTD Price Performance

From a valuation perspective, LCID appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 2.76, higher than the industry’s 2.67. Tesla is trading at a forward sales multiple of 10.12.

 
The Zacks Consensus Estimate for LCID’s 2025 and 2026 bottom-line loss has widened by a penny each in the past 30 days. 

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This article originally published on Zacks Investment Research (zacks.com).

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