Lucid Group (LCID) Stock Forecast & Price Target

Lucid Group Inc. is poised for significant growth with the expected launch of the Gravity, projected to capture a total addressable market approximately six times that of the Lucid Air Sedan, thereby materially increasing customer demand. Additionally, the anticipated rollout of a midsize vehicle platform in the second half of 2026 is expected to serve as a catalyst for scaling production and enhancing profit margins. Furthermore, Lucid's strategic entry into the robotaxi market in late 2026 in collaboration with Uber is likely to foster further partnerships and accelerate advancements in vehicle autonomy, positioning the company well within the evolving electric vehicle sector.

Lucid Group reported a significantly negative gross margin of approximately 105% for Q2 2025, which is a deterioration from their previous year's gross margin of approximately 135% and worse than their own estimates of around 86%. While operating expenses have been slightly adjusted downward for FY25 and FY26, the forecast remains substantial at $2.069 billion and $2.086 billion, respectively. The company faces considerable risks including persistently high negative margins, potential tariffs, the removal of EV tax credits, ongoing supply chain challenges, manufacturing constraints, a highly competitive market, and slower-than-expected adoption rates among customers.