Lucid Group Shares Experience Volatility: Unveiling the Gravity SUV

Lucid Group LCID shares are experiencing significant volatility today after the company announced the start of deliveries for its new electric Gravity SUV over the weekend.

Entry into the Electric SUV Market

This announcement marks Lucid's entry into the increasingly competitive electric SUV market. The Gravity is set to directly compete with well-established models, including Tesla's Model X.

Initial Deliveries and Pricing

Lucid celebrated the first deliveries of the Gravity SUV with a post on X, showcasing a video of delighted customers leaving the Casa Grande, Arizona factory. The Gravity is available in a Grand Touring trim starting at $94,900, which is aimed at a wider audience compared to the company's previous Air sedan. Furthermore, Lucid plans to introduce a more affordable Touring trim, priced at $79,900, with production expected to start in late 2025.

Market Potential and Company Strategy

CEO Peter Rawlinson emphasized that the Gravity targets a market that is six times larger than Lucid's previous offerings. He described the Gravity as a three-row SUV that aims to compete with, and exceed, the capabilities of the Tesla Model X. However, despite this promising step forward, Lucid is still facing challenges, having reported an adjusted loss of 28 cents per share in the third quarter and remaining unprofitable overall.

Future Plans and Financial Impact

The company has plans to expand its lineup further by developing a midsized platform targeted for production in late 2026, with an anticipated price of around $48,000. This model is expected to compete against the Tesla Model 3 and Model Y, expanding Lucid’s reach into a more price-sensitive segment of the market.

Stock Performance

As of today, Lucid's shares have decreased more than 24% year-to-date, and analysts have set a consensus price target of $5.04 for the stock. Projections for the stock vary widely, with a high estimate of $12 and a low of $2, reflecting ongoing uncertainty about Lucid's profitability and ability to gain market traction.

Current Price Action

On the trading front, Lucid Group shares initially rose by 1.31% but then reversed, dropping by 3.02% to approximately $3.05, according to recent market data.

Lucid, SUV, Stock