Think It's Too Late to Buy Lucid Group? Here's the Biggest Reason Why There's Still Time.

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Ryan Vanzo, The Motley Fool

Sat, Mar 22, 2025, 5:45 AM 3 min read

Typically, stocks expected to turn income importantly successful the twelvemonth to travel are priced astatine a premium. And to beryllium sure, Lucid Group (NASDAQ: LCID) shares aren't needfully inexpensive astatine 7.3 times sales. But aft a crisp correction, its shares are cheaper than they've been successful years, portion maturation estimates for 2025 telephone for income to leap by astir 100%.

As a whole, electric car stocks had a unsmooth commencement to 2025. Competitors similar Tesla and Rivian Automotive saw their valuations plummet by 30% oregon much successful a substance of weeks. Lucid Group was nary exception, particularly aft the departure of its longtime CEO successful February.

Right now, Lucid trades astatine a discount to Tesla, but a premium to Rivian. The premium versus Rivian marque sense, considering Lucid is expected to turn gross by 94% this twelvemonth versus conscionable 8% maturation for Rivian. What doesn't marque arsenic overmuch sense, astatine slightest according to the earthy numbers, is Lucid's comparative discount to Tesla shares. Lucid's maturation complaint successful 2025 is projected to beryllium six times higher than Tesla's, yet Tesla shares commercialized astatine a premium.

Tesla, of course, has important semipermanent advantages that are not captured successful near-term maturation rates. It has near-ubiquitous brand-name recognition, arsenic good arsenic a sizable superior vantage -- a large woody successful an manufacture rife with humanities bankruptcies.

But Lucid's comparative discount inactive sticks retired arsenic an accidental pursuing an industry-wide correction. The company's Gravity SUV level should boost income maturation considerably this year. And if absorption is to believed, respective caller wide marketplace vehicles successful 2026 could assistance prolong elevated maturation rates for years to come.

There's a batch of hazard here, particularly considering the CEO's abrupt departure. But shares present commercialized adjacent an all-time debased valuation conscionable arsenic maturation rates are expected to ramp considerably, providing an accidental for assertive maturation investors consenting to bargain and hold.

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