Tesla's challenges lead to a surge in orders for Lucid, with strong growth potential

From Nasdaq: 2025-04-04 15:05:00

President Trump’s tariffs have disrupted the EV market, causing Tesla’s shares to plummet 45%. Lucid Group, on the other hand, is taking advantage of Tesla’s setbacks, making it a potential good investment. Tesla’s political controversies and declining sales have led current owners and potential buyers to consider switching to Lucid.

With Tesla facing challenges, Lucid is seeing a surge in orders, especially from Tesla owners. Lucid’s goal to sell 20,000 vehicles in 2025 looks promising, especially with the new wave of tariffs unlikely to affect them. Brokers are optimistic about Lucid’s growth potential, raising its average short-term price target by 11.7%.

Despite Lucid’s revenue growth, the company reported a negative gross profit and net loss. Lucid must increase production and manufacture more affordable EVs to become profitable. While Lucid’s first-quarter deliveries beat estimates, new entrants should be cautious before investing in LCID stock. Lucid currently holds a Zacks Rank #3 (Hold).



Read more at Nasdaq: Tesla’s Pain Is Under $3 Lucid’s Gain: Time to Buy LCID Stock?