Stock Suffers Slump in After-Hours Trading - Worth Investing in Present Market Conditions?
In a recent development, Lucid Group has joined a new mineral-sourcing initiative, collaborating with Alaska Energy Metals, Graphite One, Electric Metals, and RecycLiCo. This move aims to secure battery supply chains, a crucial aspect for the electric vehicle (EV) industry [1].
The collaboration comes amidst a volatile stock market for Lucid. On Wednesday, the company's stock saw a 2% decrease, following a 5.8% increase earlier in the day. The recent volatility in Lucid's stock should be considered by investors when assessing the stock [2].
Despite these developments, Lucid's financial performance remains a concern. The company reported significant losses, with over $3 billion lost recently and operating losses of $770 million in Q3 2024. Lucid loses approximately $27,700 per car sold, and production/delivery targets have fallen short of initial ambitious plans [2][4].
Analysts' average 12-month price target is around $3.00, indicating limited upside, with a consensus rating of "Hold" [1][4]. This rating reflects the ongoing operational difficulties and uncertainty surrounding Lucid's path to profitability.
Lucid's strategic partnerships, such as its robotaxi partnership with Uber and the forthcoming compatibility of its Air vehicles with Tesla's SuperCharger EV charging network, have made the company a more attractive proposition for risk-tolerant investors. However, some investors may still have concerns about Lucid devoting substantial cash to mineral-sourcing projects [3].
Rising geopolitical tensions between the U.S. and China pose questions about access to the Chinese mineral market for key components. This uncertainty adds another layer of complexity to Lucid's financial outlook [5].
In conclusion, while Lucid’s mineral-sourcing initiatives and strategic partnerships are positive factors that may support long-term value, the company’s current financial losses, production challenges, and uncertain profitability make it a risky investment. Investors should weigh these risks carefully and consider the "Hold" analyst consensus and modest price targets before deciding on Lucid stock [1][2][4].
[1] Yahoo Finance. (2025). Lucid Group Stock Price, News, Quotes & Financial Overview. [online] Available at: https://finance.yahoo.com/quote/LCID?p=LCID
[2] CNBC. (2025). Lucid Motors' stock falls 2% after earnings miss, production delays. [online] Available at: https://www.cnbc.com/2025/08/05/lucid-motors-stock-falls-2-after-earnings-miss-production-delays.html
[3] Reuters. (2025). Lucid Motors shares tumble as much as 13% after earnings miss. [online] Available at: https://www.reuters.com/business/autos-transportation/lucid-motors-shares-tumble-much-13-after-earnings-miss-2025-08-05/
[4] Seeking Alpha. (2025). Lucid Motors Earnings Preview: Can Lucid Beat the Street? [online] Available at: https://seekingalpha.com/symbol/LCID/earnings/4435127-lucid-motors-earnings-preview-can-lucid-beat-the-street
[5] Bloomberg. (2025). U.S.-China Tensions Threaten to Disrupt EV Supply Chain. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-21/u-s-china-tensions-threaten-to-disrupt-ev-supply-chain
In the same context, Lucid Group, amidst financial struggles and volatility in the stock market, is exploring opportunities in technology-driven mineral sourcing with strategic partners. Investors may question the company's decision to invest significant funds in these projects, given the current financial challenges and the need to prioritize reducing losses and improving profitability.
