From Nasdaq: 2025-04-03 10:36:00

Tesla (NASDAQ: TSLA) is facing a brand crisis with over 200 protests held due to CEO Elon Musk’s downsizing project. Sales in Europe are down 42%, and a recall for nearly every Cybertruck was issued by the U.S. National Highway Traffic Safety Administration. Lucid Group (NASDAQ: LCID) is benefiting from Tesla’s missteps, with a surge in demand from former Tesla owners accounting for 50% of orders.

Lucid, a luxury EV maker, is experiencing a boost in demand from disgruntled Tesla customers. With Tesla facing backlash similar to Uber’s past situation, Lucid is poised to capture market share. However, Lucid’s production struggles and financial losses may hinder its profitability in the near term.

Investors should watch how Tesla’s brand crisis unfolds as it could benefit Lucid, but production challenges remain. Lucid aims to ramp up production to capture a share of the market. While Lucid may be an attractive option for some Tesla customers, profitability and scalability are key factors to consider before investing in the company.

The Motley Fool Stock Advisor team did not include Lucid Group in their list of 10 best stocks to buy now. This highlights the uncertainty surrounding Lucid’s growth potential amidst Tesla’s brand crisis. Investors should carefully evaluate Lucid’s financials and production capabilities before making an investment decision.



Read more at Nasdaq: Will Tesla’s Pain Be This EV Stock’s Gain?