Forget Lucid Stock and Look at This EV Stock Instead

• Shares successful Lucid Group person continued to underperform arsenic precocious losses persist, and the EV start-up continues to trust connected dilutive equity income to enactment afloat.

• Lucid's continued mediocre show raises questions astir the merits of making a semipermanent stake connected this would-be EV contender.

• This is particularly existent arsenic determination is simply a stronger rival retired there, offering investors a overmuch much appealing risk/reward proposition.

• 10 stocks we similar amended than Lucid Group ›

Trading down implicit 60% since the commencement of the year, Lucid Group (NASDAQ: LCID) banal has remained a mediocre performer. In 2025, investors would person been overmuch amended disconnected by simply buying an exchange-traded money (ETF) that tracks the S&P 500 index. The S&P 500 has accrued by astir 13% implicit this clip frame.

Even if you are peculiarly bullish connected the semipermanent electrical conveyance (EV) maturation trend, it inactive makes small consciousness to support a Lucid position. Why? It each has to bash with different publically traded EV contender that could person a clearer and much factual way to profitability and higher prices.

Lucid's astir caller stock terms declines are conscionable the extremity of the iceberg successful presumption of this stock's mediocre performance. Around 5 years ago, erstwhile this stock's predecessor, a peculiar intent acquisition institution (SPAC), announced it was going to instrumentality Lucid public, shares traded for arsenic overmuch arsenic a split-adjusted $580.50 per share.

Compare that to the existent banal price, and you'll spot that, implicit the agelong haul, Lucid has been a horrendous investment, losing implicit 98% of its value. Sure, past show doesn't warrant akin results successful the future. Still, I would deliberation doubly earlier bottom-fishing successful Lucid.

Although Lucid continues to summation its accumulation and income capacity, currency pain remains precise high. For instance, during the 4th ending Sept. 30, 2025, gross accrued to $336.6 million, a much than 68% year-over-year increase; however, operating currency pain besides ballooned to $756.6 million, up 63.5% from the anterior year's quarter.

Worse yet, to screen these losses, Lucid has continued to trust connected the merchantability of caller equity and convertible bonds, mostly to its bulk shareholder, Saudi Arabia's Public Investment Fund (PIF). The resultant stock dilution has been a cardinal origin successful the stock's semipermanent decline, and arsenic currency pain persists, it volition apt thrust a further erosion of the banal price.

Recent changes successful U.S. Federal EV argumentation person led to home income stalling, but semipermanent forecasts inactive telephone for EVs to proceed becoming an progressively larger stock of the conveyance market. Moreover, globally, EV income are up 21% this year.