Lucid Group, Inc.

Carvana Co. CVNA is slated to release third-quarter 2025 results on Oct. 29, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $1.33 and $5.05 billion, respectively.
For the third quarter, the consensus estimate for Carvana’s earnings has moved up 3 cents in the past seven days. Its bottom-line estimates imply 107.8% growth from the year-ago reported numbers.
The Zacks Consensus Estimate for CVNA's quarterly revenues implies year-over-year growth of 38.2%. The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 107.32%. This is depicted in the graph below:
Carvana Co. Price and EPS Surprise
Q2 Highlights
In the second quarter of 2025, CVNA’s adjusted EPS of $1.28 beat the Zacks Consensus Estimate of $1.10 and increased from the year-ago quarter’s earnings of 14 cents. The company reported net sales of $4.84 billion, which beat the Zacks Consensus Estimate of $4.59 billion. The top line also rose 42% year over year.
Things to Note
In the second quarter of 2025, Carvana’s retail unit sales continued to grow on strong demand. Carvana projected a sequential increase in retail unit sales in the third quarter of 2025. The expected increase in retail unit sales is likely to have boosted the company’s top-line growth in the quarter under review. For the third quarter of 2025, we projected retail unit sales of 145,112 vehicles, suggesting a growth of 33.6% year over year.
The acquisition of ADESA's U.S. operations has strengthened Carvana’s logistics network, auction capabilities and reconditioning infrastructure. The company is also expanding ADESA Clear, its digital auction platform, across more ADESA and Carvana locations. This integration combines ADESA’s wholesale expertise with Carvana’s technology to streamline the buying and selling experience. Collectively, these efforts are driving higher throughput, lower costs and improved profitability.
Carvana recorded adjusted EBITDA of $601 million in the second quarter, up 70% year over year, with industry-leading margins of 12.4%. It continues to focus on enhancing operational efficiency across the business to drive adjusted EBITDA. For the full year, it forecasts adjusted EBITDA in the band of $2-$2.2 billion compared with $1.38 billion recorded last year. The acquisition of ADESA's U.S. operations and expected increase in adjusted EBITDA for the full year 2025 are likely to have improved the company’s margin in the to-be-reported quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Carvana for the quarter to be reported, as it has the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is the case here.
Earnings ESP: CVNA has an Earnings ESP of +6.55%. This is because the Most Accurate Estimate is pegged higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #2.
Other Stocks With the Favorable Combination
Here are some other players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time around.
Aptiv PLC APTV has an Earnings ESP of +4.83% and a Zacks Rank #2 at present. The company is set to release third-quarter 2025 results on Oct. 30. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for APTV’s to-be-reported quarter’s earnings and revenues is pegged at $1.81 per share and $5.06 billion, respectively. Aptiv beat earnings estimates in each of the trailing four quarters, the average surprise being 10.29%.
Lucid Group, Inc. LCID has an Earnings ESP of +0.72% and a Zacks Rank #3 at present. The company is set to release third-quarter 2025 results on Nov. 5.
The Zacks Consensus Estimate for LCID’s to-be-reported quarter’s loss per share and revenues is pegged at $2.32 per share and $325.6 million, respectively. Lucid beat earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 11.09%.
American Axle & Manufacturing Holdings, Inc. AXL has an Earnings ESP of +5.00% and a Zacks Rank #3 at present. The company is scheduled to release third-quarter 2025 results on Nov. 7.
The Zacks Consensus Estimate for AXL’s to-be-reported quarter’s earnings per share and revenues is pegged at 13 cents per share and $1.50 billion, respectively. American Axle beat earnings estimates in each of the trailing four quarters, the average negative surprise being 584.14%.
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Carvana Gears Up to Report Q3 Earnings: Here's What to Expect

Key Points
Shares of the struggling EV maker are off by nearly 97% from their all-time high.
Lucid has wrestled with supply chain bottlenecks and tough competition.
The stock looks undervalued, but investors shouldn't jump in just yet.
Lucid Group (NASDAQ: LCID), a producer of luxury electric vehicles (EVs), attracted a lot of attention when it went public on July 26, 2021, through a reverse merger with a special purpose acquisition company (SPAC). Its stock opened at $25.24 and closed at a record high of $57.75 per share less than four months later.
But then it plunged -- falling so far, in fact, that last month, management felt the need to conduct a 1-for-10 reverse stock split. So as of this writing, it trades at a share price of just under $20. But had it not conducted that financial maneuver, it would be trading below $2. On a reverse-split adjusted basis, it's down by more than 90% from its price the day it joined the public markets.
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Lucid initially impressed the bulls for several reasons. It was led by Tesla's former chief vehicle engineer, Peter Rawlinson. It was all set to produce its first vehicles. And management claimed it would be able to deliver 20,000 vehicles in 2022, 49,000 vehicles in 2023, and 90,000 vehicles in 2024. It started to deliver its first model, the Air sedan, in October 2021.
But like many other SPAC-backed EV makers, Lucid overpromised and under-delivered. It only delivered 4,369 vehicles in 2022, 6,001 vehicles in 2023, and 10,241 vehicles in 2024. It struggled with supply chain constraints, intense competition, the impacts of inflation, higher interest rates, and reduced EV subsidies on the broader EV market. Rawlinson also stepped down as CEO this past February, and the company's board still hasn't appointed his permanent replacement yet.
All of those challenges make Lucid seem like a risky investment. But should you buy its beaten-down stock while it still trades below Wall Street's average price target of $23.43?
What the bulls will tell you about Lucid
Lucid bulls believe the company's new models will attract more customers, that its recent partnership with Uber Technologies and autonomous vehicle technology specialist Nuro will give it a foothold in the nascent robotaxi market, and that its Saudi Arabian backers will help it expand its production facilities.
This spring, Lucid started to deliver its second vehicle, the Gravity SUV, to the general public. It plans to produce 18,000 to 20,000 vehicles for the full year as it ramps up its production of the Gravity and continues to deliver more Air sedans. In July, it partnered with Uber and Nuro in a deal that will -- if all goes to plan -- see Uber deploying at least 20,000 autonomous Gravity SUV robotaxis across the United States over the next six years. Lucid delivered its first test vehicle for that project in September.
In 2026, it plans to launch its third model, a lower-priced SUV called the Lucid Earth, which will start at less than $50,000. That new SUV could help it compete more effectively against Tesla and other EV makers. It also expects to continue gradually fulfilling a 10-year order for 100,000 vehicles from the Saudi Arabian government that it began to deliver on in 2023.
Lucid will need to expand its original AMP-1 plant in Arizona and its new AMP-2 plant in Saudi Arabia to support its growth. But it still had $4.86 billion in total liquidity at the end of its latest quarter, and it's still firmly backed by Saudi Arabia's Public Investment Fund (PIF), which owns more than 60% of Lucid's outstanding shares.
From the $808 million in revenue it brought in during 2024, analysts expect Lucid's top line to grow at a compound annual rate of 82% to $4.87 billion in 2027 as it scales up its business. They also expect it to narrow its annual net loss from 2024's $3.06 billion to just $1.79 billion in 2027.
With a market cap of $9.1 billion and a valuation of just 2.4 times next year's expected sales, the stock looks cheap. Tesla, which is bigger and reliably profitable, trades at 13 times next year's sales. In context, it looks like any positive company-specific news could drive Lucid's stock a lot higher. That might be why its insiders were net buyers of shares over the past six months.
What the bears will tell you about Lucid
Luicd bears believe it will be too difficult for the EV maker to scale up its operations. Consider that Tesla ramped up its annual deliveries from 22,442 vehicles in 2013 to 1.79 million vehicles in 2024 -- but it enjoyed early-mover advantages in the EV market, and its sales were supported by U.S. federal tax incentives for EV buyers.
Lucid is attempting to scale up in a far more saturated and fragmented EV market. President Donald Trump has dialed back U.S. subsidies, and the Big Beautiful Bill brought an end to the federal EV tax credit. Meanwhile, Lucid's luxury EVs are still pricier than Tesla's comparable vehicles.
If Lucid can't successfully ramp up its production to a level that allows it to operate profitably, it will continue to burn billions of dollars as it dilutes its shares with more secondary offerings and heavy stock-based compensation expenses. It could also struggle to find the right permanent CEO to guide it through this next expansion phase.
Is it the right time to buy Lucid's stock?
Lucid delivered 10,496 vehicles in the first nine months of 2025, but it will need to deliver more than 8,500 in the fourth quarter to hit the midpoint of its full-year forecast. That's a high bar to clear -- so I'd rather wait for Lucid to post its full third quarter earnings report on Nov. 5 before deciding if it's the right time to pull the trigger on its out-of-favor stock. I wouldn't rush to buy it while it's below $23, since it still has plenty of room to rise before it would be considered expensive.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Lucid Stock While It's Below $23?

BorgWarner Inc. BWA is slated to release third-quarter 2025 results on Oct. 30, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $1.15 and $3.60 billion, respectively.
For the third quarter, the consensus estimate for BorgWarner’s earnings has moved down a penny in the past 60 days. Its bottom-line estimates imply 5.5% growth from the year-ago reported numbers.
The Zacks Consensus Estimate for BWA's quarterly revenues implies year-over-year growth of 4.4%. The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.9%. This is depicted in the graph below:
BorgWarner Inc. Price and EPS Surprise
Q2 Highlights
In the second quarter of 2025, BWA’s adjusted EPS of $1.21 beat the Zacks Consensus Estimate of $1.06 and increased from $1.19 reported in the year-ago quarter. The company reported net sales of $3.64 billion, which beat the Zacks Consensus Estimate of $3.55 billion. The top line also rose 1% year over year.
Things to Note
BorgWarner’s sales continue to gain traction in the second quarter of 2025 as a result of a 31% year-over-year increase in light vehicle eProduct sales. The automotive equipment supplier expects continued growth across combustion business extensions and eProduct growth in Europe and Asia. Continued sales growth is likely to have boosted the company’s top line in the third quarter.
In the second quarter, the company’s emphasis on productivity, restructuring, supply chain efficiencies and cost management enabled it to offset much of the tariff impact on its combustion business. For full-year 2025, it raised its adjusted operating margin outlook to a range of 10.1-10.3%, up from the previous estimated range of 9.6-10.2%. This updated guidance factors in a 10-basis-point dilution from tariffs. An upward revision in the margin forecast is likely to have bolstered the company’s performance in the to-be-reported quarter.
Earnings Whispers
Our proven model predicts an earnings beat for BorgWarner for the quarter to be reported, as it has the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is the case here.
Earnings ESP: BWA has an Earnings ESP of +1.38%. This is because the Most Accurate Estimate is pegged higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are some other players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time around.
Aptiv PLC APTV has an Earnings ESP of +4.62% and a Zacks Rank #2 at present. The company is set to release third-quarter 2025 results on Oct. 30. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for APTV’s to-be-reported quarter’s earnings and revenues is pegged at $1.79 per share and $5.04 billion, respectively. Aptiv beat earnings estimates in each of the trailing four quarters, the average surprise being 3.05%.
Lucid Group, Inc. LCID has an Earnings ESP of +0.72% and a Zacks Rank #3 at present. The company is set to release third-quarter 2025 results on Nov. 5.
The Zacks Consensus Estimate for LCID’s to-be-reported quarter’s loss per share and revenues is pegged at $2.32 per share and $325.6 million, respectively. Lucid beat earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 11.09%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

BorgWarner to Report Q3 Earnings: Here's What to Expect

PHINIA Inc. PHIN is slated to release third-quarter 2025 results on Oct. 28, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $1.17 and $868.8 million, respectively.
For the third quarter, the consensus estimate for PHINIA’s earnings has moved up 12 cents in the past 90 days. Its bottom-line estimates imply no change from the year-ago reported numbers.
The Zacks Consensus Estimate for PHIN's quarterly revenues implies year-over-year growth of 3.55%. The company's earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 13.88%. This is depicted in the graph below:
PHINIA Inc. Price and EPS Surprise
Q2 Highlights
In the second quarter of 2025, PHIN’s adjusted EPS of $1.27 beat the Zacks Consensus Estimate of 99 cents and increased from the 88 cents reported in the year-ago quarter. The company reported net sales of $890 million, which beat the Zacks Consensus Estimate of $844 million. The top line also rose 2.5% year over year.
Things to Note
Per S&P Global, the average age of U.S. light vehicles rose by another two months for the second straight year, reaching about 12.8 years. This trend bodes well for PHIN’s nondiscretionary aftermarket parts segment within the internal combustion engine market. The expected rise in aftermarket parts sales is likely to have boosted the company’s top line in the third quarter.
The inclusion of tariff-related revenues, which carry zero margin, is expected to slightly reduce the overall margin percentage. For full-year 2025, the company now projects adjusted EBITDA between $455 million and $485 million, suggesting 13.7% to 14.1% of sales, down from the previous guidance range of $450 million to $490 million, indicating 13.7% to 14.5% of sales. This is likely to have hurt the company’s margin in the third quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for PHINIA for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.
Earnings ESP: PHIN has an Earnings ESP of +4.70%. This is because the Most Accurate Estimate is pegged higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #4 (Sell).
Stocks With the Favorable Combination
Here are some players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time around.
Aptiv PLC APTV has an Earnings ESP of +4.62% and a Zacks Rank #2 at present. The company is set to release third-quarter 2025 results on Oct. 30. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for APTV’s to-be-reported quarter’s earnings and revenues is pegged at $1.79 per share and $5.04 billion, respectively. Aptiv beat earnings estimates in each of the trailing four quarters, the average surprise being 3.05%.
Lucid Group, Inc. LCID has an Earnings ESP of +0.72% and a Zacks Rank #3 at present. The company is set to release third-quarter 2025 results on Nov. 5.
The Zacks Consensus Estimate for LCID’s to-be-reported quarter’s loss per share and revenues is pegged at $2.32 per share and $325.6 million, respectively. Lucid beat earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 11.09%.
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Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
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Stock #5: Modern Omni-Channel Platform Coiled to Spring
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PHINIA Inc. (PHIN) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PHINIA Gears Up to Report Q3 Earnings: Here's What to Expect

General Motors (GM) came out with quarterly earnings of $2.8 per share, beating the Zacks Consensus Estimate of $2.28 per share. This compares to earnings of $2.96 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +22.81%. A quarter ago, it was expected that this an automotive manufacturer would post earnings of $2.39 per share when it actually produced earnings of $2.53, delivering a surprise of +5.86%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
General Motors, which belongs to the Zacks Automotive - Domestic industry, posted revenues of $48.59 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 9.76%. This compares to year-ago revenues of $48.76 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
General Motors shares have added about 8.9% since the beginning of the year versus the S&P 500's gain of 14.5%.
What's Next for General Motors?
While General Motors has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for General Motors was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.89 on $42.11 billion in revenues for the coming quarter and $9.45 on $176.86 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Domestic is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Lucid Group (LCID), has yet to report results for the quarter ended September 2025. The results are expected to be released on November 5.
This an electric vehicle automaker is expected to post quarterly loss of $2.32 per share in its upcoming report, which represents a year-over-year change of +43.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Lucid Group's revenues are expected to be $325.59 million, up 62.8% from the year-ago quarter.
Should You Invest in General Motors Company (GM)?
Before you invest in General Motors Company (GM), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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General Motors (GM) Q3 Earnings and Revenues Top Estimates

In the latest close session, Lucid Group (LCID) was up +2.19% at $2.33. The stock's change was more than the S&P 500's daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.09%.
The an electric vehicle automaker's stock has climbed by 4.59% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 1.41% and the S&P 500's gain of 4.37%.
Investors will be eagerly watching for the performance of Lucid Group in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 5, 2025. On that day, Lucid Group is projected to report earnings of -$0.24 per share, which would represent year-over-year growth of 17.24%. Alongside, our most recent consensus estimate is anticipating revenue of $292.12 million, indicating a 45.64% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.92 per share and a revenue of $1.35 billion, signifying shifts of +26.4% and +67.3%, respectively, from the last year.
Any recent changes to analyst estimates for Lucid Group should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Lucid Group is currently a Zacks Rank #4 (Sell).
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 206, placing it within the bottom 17% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lucid Group (LCID) Outperforms Broader Market: What You Need to Know

Key Points
Grok and other AI selected Lucid's Air sedan as the best electric vehicle.
Lucid has recorded seven consecutive quarters with rising deliveries.
Despite momentum, Lucid faces many challenges and headwinds.
Everybody loves a good rivalry, especially the rivalries that get a little chippy or testy. There's a little fun rivalry developing between Tesla (NASDAQ: TSLA) and Lucid (NASDAQ: LCID) within the highly competitive automotive industry. While Lucid has previously mentioned Tesla is not its main competitor, earlier this year, Lucid's CEO made a comment that there's been an uptick in consumers leaving the Tesla brand and heading Lucid's way.
Taking things a bit further recently, Lucid did a little light trolling at Tesla's expense.
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Trolling isn't all bad!
Lucid recently posted a video on social media asking Grok (which is the AI platform of Tesla CEO Elon Musk's xAI), ChatGPT, and Copilot, "What's the best luxury EV?". Grok replied: "The 2025 Lucid Air emerges as the overall leader. It excels in efficiency and acceleration, with a serene, high-end cabin." All in all, AI agreed that Lucid owns the best luxury electric vehicle (EV), and with the 2025 Lucid Air Pure being the world's most efficient car with an EPA-estimated 5 miles per kilowatt-hour (kWh), there's some evidence to suggest AI got this one right -- as well as the consumers swapping to Lucid.
In a September interview with the Financial Times, Lucid's interim CEO, Marc Winterhoff, dropped a hint about Tesla consumers moving brands: "We have seen an uptick, that's definitely the case, in Europe and also here in the U.S. The Model S, nothing has changed in 12 years now." Winterhoff added that buyers are "actively looking for other options."
Trolling aside, Lucid has momentum
Lucid's trolling was a fun jab at the U.S. EV market share leader, but the company also has very real momentum with its deliveries. It's a welcome change of pace for long-term investors who held shares in the early years when production hiccups and delays, among other issues, often drove disappointing results. That's changed recently.
Lucid recently announced yet another record quarter, powered by both deliveries and production increasing during the third quarter. After finally overcoming supply chain hurdles that impacted production during the first half of 2025, investors had been anticipating the automaker to accelerate deliveries -- and that it did. Lucid delivered 4,078 vehicles during the third quarter, and if you're keeping track, that's the seventh straight quarter with higher deliveries. Also worth noting, Lucid said the automaker manufactured close to 5,000 vehicles during the quarter, the most in its history.
The company certainly needs to crank up production because it already cut its full-year production target from a solid 20,000 down to a less firm range of 18,000 to 20,000. Further, it would need a substantial boost to hit that target as it reached production of only 9,966 vehicles through the first three quarters of the year.
Despite Lucid's recent momentum and the tantalizing potential returns of investing in the right young EV maker, many challenges, hurdles, and concerns remain for the stock.
Is Lucid a buy?
Let's start with a graph that should quickly emphasize a few things for investors.
The key things to note: Lucid's free cash flow has been consistently and significantly negative, it has repeatedly diluted shareholders to raise capital to fund its business, and its share price has consistently declined as the hype from its IPO waned over the years.
In combination with shareholder dilution, the drawback is that Lucid has also heavily relied on its Saudi Arabia backer. The country, through its Public Investment Fund (PIF), owns a majority stake in Lucid with ownership reported at over 60%. The problem for investors is that this can be a double-edged sword. Lucid has depended on Saudi support heavily, but Lucid is but one of many broader investments the PIF is making to develop a robust EV ecosystem in the country, with hopes to foster production of half a million EVs annually by the end of this decade.
That essentially means Saudi Arabia's PIF could, in theory, decide it has better investment opportunities and pull the plug on its dealings with Lucid -- which would have largely devastating effects on the automaker. Not only would it be a large overhang on the stock, its share price, and demand, but it would also almost certainly raise the company's cost of capital as raising funds would become more difficult.
Taking things a step further, Lucid has plenty of other headwinds to deal with, including its relatively low production volume compared to larger competitors, leaving it with a long road to building scale that enables profitability. There's also increasing EV competition with larger competitors quickly bringing prices down, potentially offering more compelling products than Lucid's higher-priced vehicles. One could even argue that the company's management shakeup has been a negative, with Lucid founder and former CEO Peter Rawlinson stepping down from his roles in February of this year.
Ultimately, Lucid is absolutely not a stock for conservative investors. Owning shares is high-risk, volatile, and for a company posting persistent losses and cash burn, many investors should watch this intriguing stock from the sidelines.
Should you invest $1,000 in Lucid Group right now?
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Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AI Has Picked the Best Luxury Electric Vehicle -- But Is the Stock a Strong Buy?

Key Points
Lucid is ramping up vehicle production, and new models are in the works.
The company is losing money, and the EV industry is under pressure.
Investors shouldn't hold their breath for any impressive share price gains over the next few years.
Lucid (NASDAQ: LCID) investors have no doubt been disappointed with the stock lately. Despite the company's impressive vehicles -- its Air Sapphire sedan just won German Car of the Year in the performance category -- its share price has plummeted 81% over the past three years.
Lucid isn't alone in its struggles. The electric vehicle (EV) industry is reeling from the loss of federal tax credits and a shift toward hybrids. Fellow EV start-up Rivian is feeling the pinch too, with its stock falling about 60% over the same period.
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So, where does Lucid go from here? I think there are a couple of likely outcomes for the company over the next several years, both good and bad, based on its current trajectory.
1. Vehicle production could continue climbing
Lucid's second-quarter results showed some significant improvements for the company's revenue, production, and deliveries -- all of which could continue rising over the next several years. Here's a snapshot of those results:
Metric
Q2 2025
Q2 2024
YoY Change
Sales
$259.4 million
$151 million
72%
Vehicle production
3,863
2,100
83%
Vehicle deliveries
3,309
2,392
38%
It's worth noting that these second-quarter results occurred just before the U.S. federal EV tax credits were about to expire, which spurred many EV buyers to take advantage of the deals. Lucid's vehicles are too expensive to qualify directly, but a leasing loophole allowed customers to apply credits to their lease.
Still, it's clear that Lucid was able to significantly increase its production and deliveries, both of which are fundamental to the company's future. Things could get better on this front, because Lucid just started producing its Gravity SUV this year and has plans to launch new models over the next few years.
The first will be the Lucid Earth, a mid-size SUV with a base price around $48,000. Lucid is also rumored to be using the Earth platform for two other future models, though their launch dates are more uncertain. As the Gravity ramps up production and other models launch, Lucid investors should hopefully see the company's vehicle production -- and sales -- continue rising over the next few years.
2. The company will be far from profitable
While vehicle production and sales could increase over the next several years, I don't think investors should expect that to translate into profit any time soon. Lucid reported a loss of $0.24 per share in Q2, up from a loss of $0.34 in the year-ago quarter.
While that was an improvement, the company is still far from profitable, and investments for its upcoming vehicle models mean the company likely has many more years of increased spending. Additionally, Lucid has had to receive several cash injections from its largest shareholder, the Saudi Arabia Public Investment Fund (PIF), to keep it going.
It's unclear whether or not Lucid will need more cash from the PIF, or if it would get it even if it needed it. But investors should know that Lucid is far from standing on its own two feet, financially speaking. Some of Lucid's moves to raise capital have already resulted in some share dilution for investors, and it's possible it could happen again if Lucid needs to raise more money over the next three years.
Lucid's stock will likely continue to disappoint
I think potential investors and current Lucid shareholders shouldn't expect much from the stock in the near future. The company is still trying to expand its model lineup, and its losses are significant. At the same time, the EV industry is suffering from a loss of federal tax credits, and consumers are showing an increasing focus on hybrids and less on electric vehicles. A recent AAA survey found that just 16% of car buyers say they're "likely" or "very likely" to buy an EV as their next purchase, the lowest percentage since 2019.
Additionally, the company may need to raise more capital. This has been bad for its share price in the past, both because of dilution and because it doesn't give investors much confidence that Lucid is on the right path.
I think EVs will eventually regain their momentum, but it's already looking like it's going to take many more years before the industry is out of the woods. With Lucid already reeling, the company could feel the brunt of these difficult times.
Should you invest $1,000 in Lucid Group right now?
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Chris Neiger has positions in Rivian Automotive. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Where Will Lucid Be in 3 Years?

Key Points
EV makers just lost a key government subsidy.
One EV stock stands to lose the most.
Experts are sounding the alarm for electric vehicle stocks like Rivian (NASDAQ: RIVN), Lucid Group (NASDAQ: LCID), and Tesla (NASDAQ: TSLA). I've written recently about how all of these companies will lose a critical profit source in 2026. Automotive regulatory credits -- which previously brought in billions in "free" profit industrywide -- now have essentially zero value due to regulatory changes. But there's another challenge that Rivian, Lucid, and Tesla will soon face that could be even more damaging.
Demand for electric vehicles could be "dreadful" in 2026
According to research published in The New York Times, electric vehicle sales are expected to be "dreadful" next year. The demise won't wait until 2026 to begin, however. "Sales of electric models are expected to plummet in the last three months of the year and then remain sluggish for some time," the article concludes.
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The primary cause is clear: Earlier this year, the U.S. government eliminated tax credits for EV purchases. Because the tax credits expired at the end of September, many consumers raced to buy their vehicles before the deadline in order to lock in their financial incentives.
Previously, tax credits effectively reduced the cost of buying an EV by up to $7,500. A $55,000 vehicle, therefore, would essentially cost just $47,500. That's a big deal. Recent polling suggests that nearly 70% of American consumers want their next car to cost under $50,000.
When tax credits and other subsidies were reduced or eliminated in other countries, demand promptly fell off a cliff. That was the case for Germany in 2023, as well as Canada in 2025. Much of this demand slump will simply be due to a lumpy order book. Buyers who would have purchased in January 2026, for instance, may have accelerated their purchase to September 2025.
Investors should, therefore, be very skeptical about improving demand figures posted this upcoming quarter. The quarter that follows may, as the New York Times warns, generate "dreadful" sales growth rates.
Don't give up on Rivian, Tesla, or Lucid just yet
EV makers like Rivian, Tesla, and Lucid may have a rocky few quarters ahead. But that doesn't mean investors should ditch these stocks en masse. Long term, EV adoption is still expected to rise.
You may, however, want to conduct some asset reallocation based on this information. The company that will arguably be hit the least when it comes to eliminated tax credits for EV purchases is Tesla. It may see pressure on sales growth, but it has reliable access to capital. This will allow it to continue to invest in high-growth opportunities like robotaxis, as well as push to get a long-awaited $30,000 model to market. At that price point, these models will likely be cheap enough to see robust demand despite the absence of federal tax credits.
Rivian, meanwhile, is set to get its first affordable model to market: the R2. Two cheaper models -- the R3 and R3X -- are set to follow the R2, which is expected to begin production early next year. The R2 is expected to debut at $45,000. Even without incentives, that's below the $50,000 price point most buyers are targeting.
Lucid faces the most difficult road. The company has teased more affordable models for years, but the most aggressive timeline calls for production to begin by December 2026. Due to financial constraints and ancillary investment in other opportunities like robotaxis, it may take several more years to bring more affordable models to market. In a world where buyers are increasingly cost conscious, Lucid may struggle in a competitive landscape bereft of tax credits.
EV makers face a difficult road ahead. But opportunities remain. Instead of ditching the industry altogether, investors may be wise to simply reallocate their bets to the companies best positioned to succeed in new conditions.
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Warning: 1 Reason Experts Think Sales Will Plummet for Rivian, Tesla, and Lucid Group in 2026

Key Points
The future of the automotive industry is almost certainly electric vehicles.
With the removal of the $7,500 federal tax credit automakers are reaching into their own pockets for incentives.
EV incentives of ATPs were roughly twice the level of overall U.S. light vehicles.
On the one hand, the world is driving toward mass-adoption of electric vehicles (EVs) as they slowly but surely take over global roads. On the other hand, the U.S. is grappling with whipsaw effects from slower-than-anticipated adoption, the loss of the $7,500 federal tax credit for EV purchases, implementation of tariffs on import vehicles and auto parts, and the rollback of emissions and other environmental standards.
If you're an auto investor who doesn't look fondly upon those developments, just wait a few minutes and it'll probably change, for better or worse. Here's the latest issue facing investors and the EV industry.
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Profit-eroding incentives
With the federal $7,500 tax credit ending with the month of September, automakers trying to move EV inventory are digging into their own pockets to drive demand. General Motors (NYSE: GM) and Ford Motor Company (NYSE: F) had previously found an intriguing loophole to use their finance arms to place down payments on EVs with intentions to pass that along to the consumer later. But both quickly ended those programs after pressure from politicians claimed the workarounds were "nefarious." Now the two Detroit auto icons are offering competitive lease payments and other costly incentives to make EV purchases compelling.
Hyundai Motor decided to push a $7,500 cash incentive on its 2025 Ioniq 5 for October, while also cutting the small crossover's price by nearly $10,000 for 2026. Similarly, Ford and GM's crosstown rival, Stellantis, began offering generous incentives to offset the loss of the federal tax credit immediately following its end. Those are just a handful of examples of how incentives are on the rise, but let's dig a little deeper as the issue spans the industry.
EV incentives peaked in July at 16% of average transaction prices (ATPs), according to Stephanie Valdez Streaty, Cox Automotive's director of industry insights, and at $8,900 during September the incentives remained above 15% of ATPs. That's more than twice the level for overall U.S. light vehicles that reached 7.4% in September, and still significantly above pre-pandemic levels that were typically around 10% of ATPs.
Unfortunately for automakers and investors alike, these profit-eroding incentives are a necessary evil due to the price gap between combustion engine vehicles and EVs. The average price for a new U.S. light vehicle was $47,962 in March 2025, according to Kelley Blue Book data cited by Experian, which remains near record highs. Meanwhile, the ATP for an EV in September reached $58,124, according to data from Cox.
What's the solution?
For automakers and investors, reducing these profit-killing incentives is important, and the arrival of truly affordable models is imperative. On that front, there's a bit of good news. One example is none other than General Motors' unveiling of the new Chevrolet Bolt.
The Chevy Bolt was released for the 2017 model year and was the automaker's first legitimate attempt at a modern EV. It was lauded as a great car in an ideal size and segment at a compelling price -- but due to an extended recall GM retired the vehicle in 2023 despite the Bolt posting its best sales year.
Now the Chevrolet Bolt is coming back in the early months of 2026 for round two.
The look and design of the two Bolts are very similar, especially viewing the exterior. The new Bolt offers about the same horsepower and will charge about three times faster than the previous generation. But the real kicker, especially for investors, is the price tag -- it ranges from $28,995 for the LT trim up to $32,000 for an RS trim, with an LT trim package between the two at $29,990. If you're keeping track, that makes the upcoming Bolt the cheapest EV announced across the U.S. market. The only problem is that currently the upcoming Bolt is allegedly only available for a limited time.
What it all means
While GM is preparing to launch the new Bolt at a compelling price point, the ever-changing EV industry dynamics aren't as pleasant for other automakers. That's true even for EV juggernaut Tesla, which has recently launched "Standard" and more affordable trims of its popular Model 3 and Model Y.
However, Tesla's strategy wasn't to start from the ground up for a truly compelling new affordable EV. Rather, the automaker opted to slash features and pinch pennies. All in all, Tesla was able to drop the Model Y Standard price down to $39,990 without shipping, about $5,000 less than the previous base price, and the Model 3 Standard down to $38,630, roughly $5,500 in savings. The problem is that due to the removal of features, the value proposition may not be compelling, and the lower-priced models could end up cannibalizing sales of more profitable trims and eroding margins themselves.
Further, for investors of pure-play EV makers such as Rivian and Lucid, the pain will be more drastic. These EV makers don't have a line of combustion engine vehicles to fall back on while the markets work through all the EV industry changes, policy rollbacks, and incentive spend.
The solution is as it's always been: produce a compelling EV at a comparable price to combustion engine counterparts. But the industry simply isn't quite there yet. Long-term investors would be wise to prepare for a few bumpy quarters and more hefty EV losses while incentives and high costs take a toll. The future is bright, but patience is required.
Should you invest $1,000 in General Motors right now?
Before you buy stock in General Motors, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and General Motors wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $638,300!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,114,470!*
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*Stock Advisor returns as of October 13, 2025
Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors and Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.