Lucid Stock Crashes to Record Lows – Should You Buy Now?

Once seen as a serious rival to Tesla, Lucid Motors was one of the most extolled electric vehicle (EV) firms. Modern technology, high-end EVs, and a promising future were all promised. However, its stock is currently trading at all-time lows, which has investors wondering if this is the bottom or if things may get worse.

Some believe that this is a great chance to purchase low now and profit when Lucid rises. Others caution that there is no hope of recovery and that this might be a money trap. What is Lucid’s true situation, and should investors take the chance?

Lucid’s Wild Ride: From Highs to Lows

Lucid’s stock has been on a rollercoaster since it went public. Back in 2021, it soared to a high of $58.05, driven by excitement over its sleek luxury EVs and ambitious plans. But that excitement has faded fast. As of now, the stock has crashed to around $2.10, a shocking 96% drop from its peak.

Over the last year, it has bounced between $4.43 and $1.93, showing just how unstable it has been. While some investors believe this could be a sign of a turnaround, others see it as proof that Lucid’s troubles are far from over.

CEO Resigns—A Major Red Flag?

One of the biggest hits to Lucid came when CEO Peter Rawlinson unexpectedly stepped down. Rawlinson wasn’t just any CEO—he was the guy who helped design the Tesla Model S and was seen as the brains behind Lucid’s technology.

Now, he’s moving into an advisory role, and the company’s Chief Operating Officer, Marc Winterhoff, is taking over as interim CEO. Leadership changes like this can be unsettling, and Lucid’s stock dropped even further after the announcement. Investors are questioning whether Lucid can stay on track without Rawlinson’s leadership.

Lucid’s Financial Struggles—Hope or Disaster?

Despite all the bad news, Lucid’s latest earnings report wasn’t completely terrible. The company reported a smaller-than-expected loss of $0.22 per share in the last quarter and even saw its revenue jump by 50% to $234.5 million.

Lucid is also trying to ramp up production. Last year, it built 9,029 vehicles, and in 2025, it plans to more than double that to 20,000. The company is pinning its hopes on its new luxury SUV, the Gravity, hoping it will boost sales.

But there’s a big problem—Lucid is still burning through cash at a rapid pace. It lost a staggering $3.1 billion last year. While it has strong financial backing from Saudi Arabia’s Public Investment Fund (which owns nearly 60% of the company), there’s only so long it can rely on outside funding. At some point, it needs to prove it can stand on its own.

What Are Experts Saying?

Analysts are completely split on Lucid’s future.

Some believe this is a huge buying opportunity. Benchmark analyst Mickey Legg recently gave Lucid a price target of $5, which would mean nearly a 90% gain from where it is today. His reasoning? Lucid has cutting-edge technology, strong backing from Saudi investors, and could benefit from a growing EV market in the U.S.

But others aren’t so optimistic. Some analysts have downgraded the stock, arguing that leadership instability, ongoing financial losses, and market uncertainties make Lucid too risky to bet on.

Can Lucid Make a Comeback?

Lucid’s future depends on a few key things:

• Production and sales: It needs to scale up fast and get more cars on the road.
• New models: Its upcoming Gravity SUV could be a hit, but it needs strong demand.
• Cash flow: At some point, Lucid has to start making money, not just raising funds.
• Government policies: A potential shift in U.S. EV regulations under a new administration could either help or hurt the industry.

Lucid isn’t giving up. It’s working on a more affordable mass-market EV, but that’s still years away. For now, the company is focused on survival and proving to investors that it’s not just another failed EV startup.

So, Should You Buy Lucid Stock?

That depends on your risk tolerance.

If you believe in Lucid’s vision and think it can pull off a comeback, this might be one of the lowest prices you’ll ever see for the stock. But if you’re looking for stability, Lucid still has too many unanswered questions.

One thing is certain—whether Lucid becomes a massive success story or a cautionary tale, investors will be watching closely.