This year has been a struggle for many early-stage electric vehicle (EV) companies. Competition has grown, giving consumers more options in several vehicle segments. Lucid Group(NASDAQ: LCID) is one that has struggled to achieve high-volume sales as general EV sales growth has slowed globally.
That's led to a 33% decline in the stock over the last year. But Lucid is on the verge of launching its first offering outside of the luxury sedan segment. That's helped the stock bounce 9.5% this week as of Friday morning, according to data provided by S&P Global Market Intelligence.
Lucid boasts engineering and technology
Lucid operates at the high end of the automotive sector. Its 2025 model Air sedans range in price from almost $70,000 to as much as $249,000 for its fully equipped Sapphire trim that can deliver over 1,200 horsepower.
Lucid has focused on developing leading EV technologies for those vehicles in the start-up phase of its development. Its battery technology, for example, provides over 500 miles of battery range. Now it plans to apply that knowledge to its new fully electric SUV, which it highlighted in a technology and manufacturing day presentation this week. The Gravity SUV is slated to begin production next year giving Lucid a new market to tap into.
But its SUV platform will also be priced in the luxury category, limiting market reach somewhat. At the presentation this week, however, the company also unveiled a smaller, midsize crossover vehicle platform. It claims the new offering will come in late 2026 with a price tag starting under $50,000.
A vehicle outside of the luxury category is what Lucid will need to survive and thrive. Investors now see a path to that with an upcoming midsize platform. The Gravity SUV itself will be an important step to get to a mass market offering. But investors this week liked what they saw with the Gravity launch and the plan for a lower-priced EV coming from Lucid.
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Howard Smith has positions in Lucid Group. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
