From Yahoo Finance: 2025-04-25 10:15:00

Lucid Group (NASDAQ: LCID) is set to announce earnings on May 6, following the departure of its longtime CEO. The new CEO faces pressure to update on Gravity SUV sales and new mass market vehicles. Analysts predict a potential sales base doubling by 2025, with Lucid’s valuation currently at its lowest due to market correction.

Despite a promising growth outlook, Lucid shares are trading at a bargain compared to competitors. With a forward sales multiple of 4.7 times and expected sales growth of 85.8% in 2025, the company’s valuation is attractive. Lucid is also poised to introduce three new affordable mass market vehicles priced under $50,000 next year.

However, there are risks to consider with Lucid stock. The departure of the CEO and the company’s liquidity issues raise concerns. Execution risk, as seen with other EV manufacturers, remains a challenge. Shareholders may face dilution, and volatility is expected amid scaling efforts in 2025 and beyond.

Investors must weigh the potential for high growth against the risks when considering Lucid Group stock. While the company offers growth opportunities, there may be significant volatility. Risk-averse investors may find Lucid more suitable for those with a tolerance for fluctuations in stock price.

Read more: Here’s Why Lucid Group Stock Is a Buy Before May 6