Can the Lucid Group share today prepare for life?

• Lucid makes a very small amount of cars for other auto manufacturers.

• It is difficult to ignore that the company loses billions of dollars annually.

• The other key players compete in the same area.

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Regardless of her position as an electric player (EV), A clear group (Nasdaq: LCID) It is still just an arrow for cars, and does not make car shares a wealth of investors. Timing It was a rare exception, but we are talking about the rare rare.

Competition is one thing to keep EV makers like Lucid from missile shareholders into incredible wealth. In addition to Tesla, such as traditional car manufacturers such as General Motors and Ford Also do electric cars, which, from personal experience, I can say it is very nice. Pure EV players do not have any kind of monopoly in this field of work, and it seems that it is unlikely that the most firm players inside the cars will give up pressure.

Certainly, Lucid’s annual sales grow, as it increases from only 4 million dollars in 2020 to more than 807 million dollars in 2024. The problem is that the company loses billions of dollars annually, which explains the reason for the continued number of shares of the company while increasing the capital to cover operations by issuing shares. The total shares due increased by 32 % year on an annual basis in the first quarter of 2025, while Lucid recorded a net loss of $ 366 million, with the exception of the convertible preferred stock accumulation, which caused its losses to $ 731 million.

For me, the euphoria has wore this shares, as more than 70 % has decreased in the past five years. This does not mean that it makes a bad product. Quite the opposite. The car and driver 2025 Air Air give a five -star rating. The problem is the cost of building a car company from scratch and competition against the well -known giants in the industry, all of which make their electric cars as well as the internal combustion engine vehicles.

The production of Lucid cars came in 9,024 vehicles in 2024, which is small compared to competitors such as General Motors, which sold more than two million cars. Advisations for it 20,000 vehicles To be produced in 2025, which is still somewhat small to the broader car market.

I have been watching car shares for a long time, and I do not see the strength of the sector in terms of investment. The exception, of course, Tesla, but its operations extend through more than just cars, and I think its stock will also return to the Earth at some point.