Lucid Motors (LCID) is facing significant challenges as it struggles to ramp up production and reduce its reliance on Saudi Arabian investment. After going public via a SPAC merger in July 2021, Lucid’s stock peaked at $57.75 but has since plummeted to around $9. The company initially projected ambitious delivery targets, aiming for 20,000 vehicles in 2022, but fell short with only 4,369 deliveries that year. Although deliveries rose to 15,841 in 2025, the company still lags far behind Tesla’s growth trajectory.
The financial implications are stark. Lucid’s heavy dependence on the Saudi Public Investment Fund, which owns over 60% of its shares, raises concerns, especially amid geopolitical tensions in the region. While the company is expanding its production capabilities with new plants, its future hinges on successfully scaling operations and reducing losses. As it stands, Lucid’s valuation at 2.3 times this year’s sales may appear attractive, but without a clear path to profitability, the stock is likely to remain undervalued.
Source: fool.com