Rivian Automotive, Inc.

U.S. President Donald Trump’s unfriendly stance on electric vehicles (EVs) is set to reshape the auto industry. His “Big Beautiful Bill,” passed in July, will end the federal EV tax credits on Sept. 30.
Until then, eligible buyers can still knock $7,500 off the sticker price—on top of other incentives— but once the deadline is here, the perk disappears. Additionally, the bill has scrapped the penalties for automakers who fail to meet Corporate Average Fuel Economy (CAFE) standards.
Just a few years ago, under the Biden administration, automakers were doubling down on EVs. Tax breaks, supportive policies and stricter emissions rules pushed companies to speed up their e-mobility efforts.
But things have changed now. Trump’s rollback of incentives and regulations, along with new tariffs on imported vehicles and parts, is changing the economics of EVs in the United States. The shift is forcing legacy automakers to rethink their electrification plans.
Detroit’s Legacy Carmakers Welcome the Shift
For traditional automakers like General Motors GM and Ford F, the policy change comes as a financial breather. Bloomberg recently reported that this rollback could unlock billions of dollars for Detroit carmakers to reinvest in gasoline-powered and hybrid vehicles.
Ford CEO Jim Farley even called the policy shift a “multibillion-dollar opportunity” for its gas and hybrid business. GM CFO Paul Jacobson echoed the sentiment, saying the removal of fines will start saving the company money as early as 2026.
The reason is simple— without fuel economy fines, Ford and General Motors no longer need to buy regulatory credits from EV-only players. GM has spent $3.5 billion on credits since 2022, while Ford has cut $1.5 billion in similar purchases this year. They can now redirect the money into profitable gas-powered trucks and SUVs.
GM and F currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GM and Ford Scale Back EV Ambitions
This policy reset is showing up in production plans. GM recently announced it will temporarily cut one shift each for the GMC Hummer EV and Cadillac Escalade IQ between Sept. 2 and Oct. 6. While the Silverado EV and Sierra EV pickups remain in production, GM has delayed its second electric truck plant and Buick’s first EV by six months. Instead, the automaker revealed $4 billion in spending for mostly gasoline-powered vehicles—clear evidence it’s not betting everything on EVs anymore.
Ford is making similar adjustments. The company cut its Rouge Electric Vehicle Center in Dearborn—where the F-150 Lightning is built—to a single shift. It also scrapped plans for an all-electric three-row SUV in Ontario. Instead, Ford is leaning into hybrids, especially in its best-selling truck lineup. Farley has said the Ford Blue division, which builds gas and hybrid vehicles, had been shouldering most of the compliance burden under stricter rules. With Trump’s rollback, that division stands to benefit the most. In fact, Ford is retooling its Oakville plant to make Super Duty F-Series pickups starting next year, reversing its earlier plan to build EVs there.
While Detroit’s legacy automakers view the rollback as a relief, the story looks very different for pure play EV companies like Tesla TSLA, Lucid Group LCID and Rivian Automotive RIVN, which relied heavily on incentives and credits to fuel demand and profits.
EV Pure Plays Lose a Safety Net
Tesla, Rivian and Lucid are losing a major source of revenues. That’s because Trump’s rollback not only ends consumer tax credits but also kills the market for regulatory credits.
Under the old rules, automakers that fell short of fuel-economy targets had to either pay fines or buy credits from companies that exceeded the standards—mostly EV makers. Tesla, Rivian and Lucid were prime beneficiaries of this system. Now that the fines are gone, so is the need for credits. And the impact is beginning to show.
Rivian said regulatory credits made up 6.5% of its total revenues in the first half of 2025, but it doesn’t expect any credit sales for the rest of the year. Last year, Rivian earned more than $400 million from these sales. Losing that cushion makes its path to profitability even steeper.
Lucid is facing a similar squeeze. It is already battling demand and profitability challenges, so the loss of this income stream just adds to the hurdles.
Tesla, meanwhile, is taking the biggest hit in absolute dollars. Since 2019, Tesla has generated over $10.6 billion from credit sales—profits that often made the difference during lean quarters. In the last reported quarter alone, Tesla booked $439 million from credits. While that sounds strong, it’s down nearly 50% from the $890 million it earned a year earlier. The decline has been steady, quarter after quarter, and Trump’s rollback threatens to accelerate the slide.
Final Thoughts
GM and Ford, with their deep gas and hybrid portfolios, are among the winners from the EV policy changes. They would gain flexibility, save billions in compliance costs, and push forward with vehicles that still deliver strong margins.
On the losing side are Rivian and Lucid, whose business models counted on credit revenues to partially offset losses from selling EVs. Without that extra income, their road to profitability looks longer and riskier. Tesla, too, faces margin pressure as one of its reliable profit levers disappears.
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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.

Trump's EV Moves: Tax Credits Ending, Fines Gone - Winners and Losers

Below is Validea's guru fundamental report for RIVIAN AUTOMOTIVE INC (RIVN). Of the 22 guru strategies we follow, RIVN rates highest using our Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
RIVIAN AUTOMOTIVE INC (RIVN) is a large-cap growth stock in the Auto & Truck Manufacturers industry. The rating using this strategy is 57% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of RIVIAN AUTOMOTIVE INC
More Information on Benjamin Graham
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
Additional Research Links
Harry Browne Permanent Portfolio
High Shareholder Yield Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

RIVN Quantitative Stock Analysis - Benjamin Graham

I've written often about Rivian Automotive (NASDAQ: RIVN) in recent months. For investors who are hoping to pick the electric vehicle (EV) maker that could be the next Tesla, Rivian looks like the best bet. Based on the numbers, it's not hard to come up with scenarios where its shares soar by several times in value over the next few years.
But if you want to profit from Rivian stock, you would be smart to follow this time-tested investing strategy: patience.
3 Reasons I love this EV stock
The main thing I love about Rivian is how it's executing Tesla's proven playbook for growth. The first step is to produce a high-quality vehicle with no compromises, even if that prices out the mass market. Rivian achieved that with its R1T and R1S models. Yes, these vehicles start in the $70,000s, and in the luxury trims, they can climb above $100,000.
But Rivian's goal with them was to prove to consumers that it could make great vehicles that they could rely on. A recent Consumer Reports survey found that Rivian owners had the highest levels of customer satisfaction and loyalty among both EV-only brands and conventional automakers. That should tell you everything you need to know about Rivian's ability to sway people's opinions in a positive way.
Step two in the old Tesla playbook is to release a vehicle that is priced to be accessible to the masses. This brings us to the second reason I love Rivian right now: Its biggest days of growth are just ahead. Earlier this year, the company announced plans to produce three new models. All three -- the R2, R3, and R3X -- are expected to be available for under $50,000. When Tesla launched its first mass-market models -- the Model 3 and Model Y -- it more than doubled its revenue base, then tripled it again. The same potential is available to Rivian with its new models.
The final reason I love Rivian right now is that it's about to achieve another major milestone: gross profitability. Last quarter, the company lost around $32,000 for every vehicle it sold. Over the next few months, however, the company could reduce that loss to zero, and potentially even post a profit. On its latest conference call, executives predicted "a modest gross profit" by the fourth quarter, adding that it expects to produce roughly 57,000 vehicles this year -- right around what it produced last year.
There have certainly been sales growth headwinds, but Rivian isn't alone in facing them. Tesla's sales numbers shrank in early 2024. But if you believe in the long-term potential of the EV market, Rivian -- which is doing everything necessary to become the next Tesla -- looks like a good bet.
This is how you make money with Rivian
There's clearly huge potential for Rivian's stock price to rise over the next several years. But it won't always be easy to remain invested. As mentioned, Rivian is still losing money on every car it sells. Its current lineup is limited to just two high-priced luxury models. And its capital needs will be gigantic as it attempts to build out manufacturing facilities for its new mass-market models and ramp up their production -- models, it should be stressed, that only exist as prototypes today.
It's no wonder the stock has slumped over 90% from its initial public offering levels in 2021 -- and the risks remain very real. Yet, the current price may provide a good entry point for new investors today.
Today, Tesla shares are worth around $240 apiece. You might wish you had invested in it back in 2017, when shares were priced at just $20, right? Well, according to CEO Elon Musk, the company back then was about a month away from bankruptcy. It's hard to imagine now, but the market was very skeptical of the company's ability to sustainably and profitably scale up production of its Model 3 -- a model that looked to have great potential, but only on paper.
In 2017, Tesla's valuation was around 5 times sales. Rivian's current price-to-sales ratio is about 1.9. Could Rivian follow in Tesla's footsteps? I think the depressed valuation -- Rivian's market cap right now is just $11 billion -- is attractive enough to warrant the attention of investors.
Assuming a sales ramp similar to Tesla's, it's possible that Rivian is generating annual revenue of around $30 billion by 2030. Even at its depressed valuation multiple, that would imply a total valuation of nearly $60 billion -- more than 5 times its current value. So to be a millionaire market stock, you'll need to invest a hefty sum right off the bat.
But if Rivian can execute, expect its valuation multiple to rebound closer to Tesla's 5 times sales valuation. At that multiple, a $40,000 investment today could become $1 million or more over the next six years.
Should you invest $1,000 in Rivian Automotive right now?
Before you buy stock in Rivian Automotive, consider this:
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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.

Is Rivian Stock a Millionaire Maker?

Electric vehicle (EV) manufacturer Lucid Group (NASDAQ: LCID) closed at $2.11 on Monday, gaining $0.03 or 1.4%. Trading volume reached 85.9 million shares, below its three-month average of 138.7 million. The company's market cap stood at $6.33 billion, with the stock trading between $2.08 and $2.19 during the session. Over the past year, shares have ranged from $1.93 to $4.40.
Broad market strength supported the move. The S&P 500 (SNPINDEX: ^GSPC) rose 26.62 points, or 0.4%, to 6,465.94, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 94.98 points, or 0.4%, to 21,544.27.
Among its peers, Rivian Automotive (NASDAQ: RIVN) finished at $13.21, up $0.10 or 0.8%, while Tesla (NASDAQ: TSLA) advanced to $351.67, up $5.07 or 1.5%.
The stock's modest rebound follows Lucid's 1-for-10 reverse stock split earlier this month, aimed at maintaining Nasdaq listing compliance. However, the company continues to contend with weaker-than-expected EV deliveries and uncertainty in leadership after its CEO stepped down in February. Investors will be watching for progress on production and the appointment of a permanent chief executive as potential catalysts ahead.
Market data sourced from Google Finance and Yahoo! Finance on Tuesday, Aug. 26, 2025.
Should you invest $1,000 in Lucid Group right now?
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Daily Stock News has no position in any of the stocks mentioned. This article was generated with GPT-5, OpenAI's large-scale language generation model and has been reviewed by The Motley Fool's AI quality control systems. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Nasdaq. 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.

Stock Market Today: Lucid Group Ends Higher Amid Light Volume

Electric vehicle (EV) maker Rivian Automotive (NASDAQ: RIVN) has big plans in 2025. It could, in fact, become a make-or-break year for the young EV company, and there are reasons to be optimistic about its prospects.
Rivian is carrying momentum into the new year from several sources. Investors have been noting its accomplishments and potential by driving its stock up by about 35% over the last three months. Whether that will continue depends on how the company executes on its expansion plans on several fronts in the coming months.
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Rivian's growing opportunities
Interest in electric vehicles continued to grow in 2024, but the rate of growth has slowed. EV sales rose by 7.3% to 1.3 million units in the U.S. last year. Rivian's R1S SUV was the No. 10 best-selling domestic EV in 2024. The company delivered about 51,500 units for the year, consisting of its R1S, R1T pickup truck, and electric commercial van.
One new growth opportunity is its commercial van. The EV maker has been delivering on an existing 100,000-vehicle order for early investor Amazon. Earlier this month, the company renamed it the Rivian Commercial Van (RCV), making it available to any fleet operator. It was previously exclusive to Amazon.
Management said inquiries are coming in from many different business operators, including plumbers and electricians, floral and food-service providers, dry cleaners, and even dog groomers.
A focus on EV tech
Rivian is also working to grow through a focus on EV technology. CEO R.J. Scaringe is the public face of this drive. Last month, he announced plans to launch advanced hands-free assist capabilities this year, with "eyes off" systems due in 2026.
It seems to be taking a page out of Tesla's playbook here. Consumers are looking for more autonomous vehicle capabilities, even if that doesn't mean a fully driverless robotaxi. Scaringe stated that technology is "something we're hyper-focused on."
The CEO will also be leading a "fireside chat" at the upcoming Nvidia GTC (GPU Technology Conference) in March along with Nvidia's vice president for automotive business. The topic will be "The New Role of AI in Electric Vehicles." That tie to the leading AI company should be an encouraging sign for Rivian investors. Its Gen 2 vehicles already feature the Rivian Autonomy Platform, and the company looks to differentiate itself by building on that technology.
Here's what's ahead for Rivian
The company achieved its goal of reaching a positive gross profit for the first time in the fourth quarter. The $170 million gross profit came through cost reductions engineered into its second-generation R1 vehicles as well as supply chain and commodity cost savings. That was well ahead of Wall Street predictions for $64 million. The company also expects a modest full-year gross profit for 2025.
That's an important first step as it prepares to begin production of its next-generation R2 SUV, set to be launched in early 2026. The investment thesis in Rivian is really dependent on the success of the R2. This year will be relatively flat for sales volume. Management has only guided for sales of between 46,000 and 51,000 units for the year, a slight decrease versus 2024.
Record revenue in the fourth quarter was also aided by the sale of regulatory credits. Investors shouldn't look at that as a fundamental part of the underlying business, but Rivian ended the fourth quarter with $7.7 billion in cash and equivalents along with more liquidity available from its revolving credit facility. It also reported positive free cash flow of $856 million on an adjusted basis in the fourth quarter.
The stock remains speculative, but Rivian is in a position to succeed if its upcoming R2 attracts mass-market interest. That makes now a good time to buy shares as long as investors recognize the aggressive nature of this stock position.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Howard Smith has positions in Amazon, Nvidia, Rivian Automotive, and Tesla. The Motley Fool has positions in and recommends Amazon, Nvidia, and 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.

Is Rivian Stock a Buy Now?

Key Points
Lawsuits continue to mount for Tesla and Elon Musk.
There has been a flurry of executive departures from the company.
Losing revenue from zero-emission credit sales is a big blow to EV makers.
It's been a bumpy ride for Tesla (NASDAQ: TSLA) investors in 2025. The EV maker is feeling the heat from all angles: media, consumers, analysts, you name it.
But for all the consumers leaving the brand, and the media frustrated with Elon Musk's political antics, there are a few problems that have gone unnoticed. Let's take a look at recent lawsuits, the talent exodus, and the loss of valuable zero-emissions credit sales.
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1. Lawsuits keep mounting
Just earlier this month, Elon Musk and Tesla were sued by shareholders who accused them of securities fraud for hiding the serious risk its self-driving vehicles posed. The proposed class action lawsuit was filed earlier this month and was a black eye after the automaker's first public test of its robotaxis in late June in Austin, Texas.
These lawsuits have a wide range of driving forces, many seemingly from the actions of Musk himself. In fact, as of August 2023, Tesla was already party to over 1,750 lawsuits, a big chunk of them in China, where the company is already struggling to protect market share and profits amid a brutal price war and increased competition from domestic Chinese automakers.
Also earlier this month, a federal jury found Tesla partly liable in a 2019 car crash that killed a pedestrian and left another badly injured while the automobile was on Autopilot. The jury awarded the plaintiffs $43 million in compensatory damages for pain and suffering, plus another $200 million in punitive damages.
These lawsuits are certainly difficult to keep track of, but investors would be wise to remember that these lawsuits are adding up, and some can be very costly in brand image or directly through damages.
2. A concerning talent exodus
Amid the flurry of negative news facing Tesla, many investors brushed off the peppering of executive departures throughout the year. But this is a talent exodus that has become, and should be, concerning to investors.
Here's a look at key departures, to name a few:
Omead Afshar (VP/Head of Sales and Manufacturing, North America/Europe)
Milan Kovac (Head of Optimus Humanoid Robot Team)
Vineet Mehta (Head of Battery Architecture)
Troy Jones (VP of Sales, Service, and Delivery, North America)
Pete Bannon (VP of Hardware Engineering, Chip Tech, and Dojo Supercomputer)
Piero Landolfi (Director of Service, North America)
Those were just a handful of high-profile executives and key personnel departing, and its leaders in key areas such as service, sales, engineering, and even the robotics team. The departures raise concerns about Tesla's leadership, operational challenges, and its current ability to remain competitive.
3. Companies in this space are losing valuable revenue
To say that Tesla and some of its EV competitors are about to lose a significant revenue source is putting it lightly. That's right: Tesla, Lucid, and Rivian, among others, are about to see billions of dollars in revenue disappear seemingly overnight as U.S. policy essentially ends the zero-emission credit market.
Essentially, the government formerly penalized automakers with lower average fuel economy, or those that produced more gasoline-guzzling vehicles and fewer EVs, but that is no longer. Without penalties being enforced, those companies failing to meet emissions standards are no longer incentivized to purchase zero-emission credits from EV makers to meet standards. And as the market for those zero-emission credits dried up, so too did a significant chunk of revenue for EV makers with a surplus of such credits. The National Highway Traffic Safety Administration (NHTSA) has already stopped issuing compliance letters to automakers that violate the fuel economy standards.
What it all means
When it rains, it pours -- at least that's how it seemed for most of Tesla's developments this year. But savvy investors would be wise to keep abreast of developments with Tesla lawsuits and its massive talent exodus, in addition to losing valuable revenue from zero-emission credits. These haven't been covered enough and raise uncertainty surrounding the EV maker.
Long-term investors should try and weather the storm and stay focused on the company's business long term. But it's also fair to say Tesla is at a crossroads with its future strategy, and investors will have to revisit their investment thesis to see if they are still aligned.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $472,031!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,882!*
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*Stock Advisor returns as of August 18, 2025
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.

3 Serious Tesla Problems Investors Aren't Talking Enough About

Below is Validea's guru fundamental report for RIVIAN AUTOMOTIVE INC (RIVN). Of the 22 guru strategies we follow, RIVN rates highest using our Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
RIVIAN AUTOMOTIVE INC (RIVN) is a large-cap growth stock in the Auto & Truck Manufacturers industry. The rating using this strategy is 57% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of RIVIAN AUTOMOTIVE INC
More Information on Benjamin Graham
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
Additional Research Links
Harry Browne Permanent Portfolio
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
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, Inc. LCID shares have been trending lower over the past month. Shares of the electric vehicle (EV) startup have plunged 22.7% over the past month, underperforming the Zacks Automotive - Domestic industry’s growth of 0.8%.
Lucid has also underperformed industry peers, including Rivian Automotive, Inc. RIVN and Tesla, Inc. TSLA. Rivian’s shares have lost 10.7%, while Tesla’s shares have returned 0.6%.
One-Month Price Return Performance
Image Source: Zacks Investment Research
LCID’s Q2 Results
Lucid reported a quarterly loss of 28 cents per share in the second quarter of 2025, narrower than the loss of 29 cents per share incurred in the year-ago period. It posted revenues of $259.4 million in the quarter, which rose from $201 million posted in the year-ago period.
The automaker delivered 3,309 vehicles in the second quarter of 2025, which rose 38% year over year, marking its sixth consecutive quarter of record deliveries. However, in the second quarter of 2025, Lucid’s rivals, Rivian and Tesla, reported a year-over-year decline in deliveries. Rivian delivered 10,661 vehicles, down from 13,790 units in the same period last year, marking two consecutive quarters of year-over-year decline, while Tesla recorded a 13.4% decline in deliveries.
Factors Favoring Lucid’s Outlook
Lucid expects deliveries to ramp up throughout 2027, driven by the production of the midsize platform scheduled to begin in late 2026. The midsize platform, which is designed to underpin a more affordable line of vehicles compared to its luxury-centric models like the Air and Gravity, presents a key opportunity for the company to expand its addressable market.
The company is actively pursuing partnerships that go beyond selling or licensing its leading EV technology. On July 17, the company announced a major collaboration with Uber Technologies, Inc. UBER and Nuro to develop a next-generation premium robotaxi for Uber’s ride-hailing platform. The project combines Lucid Gravity’s advanced software-defined vehicle architecture, Nuro’s proven Level 4 autonomous driving system, and Uber’s global network and fleet management to create a fully integrated service designed for comfort, safety and scalability. Per the deal, Uber will invest $300 million in Lucid, which is subject to regulatory approval, and deploy at least 20,000 Lucid Gravity vehicles with Nuro autonomy over six years in multiple global markets, starting late next year.
Encouragingly, LCID reaffirmed its commitment to U.S.-based manufacturing to counter the tariff impact and other geopolitical issues. For instance, a couple of months back, it announced a preliminary agreement with Graphite One to source natural and synthetic graphite domestically starting in 2028, which complemented its existing nonbinding supply agreement signed in April 2024.
Lucid has also partnered with Alaska Energy Metals, Electric Metals USA and RecycLiCo to enhance its supply chain. The company will obtain nickel from Alaska Energy Metals to boost vehicle range, extend battery life and reduce dependence on metals like cobalt. Manganese from Electric Metals will support the development of long-range, high-performance EVs while maintaining battery and passenger safety. Collaboration with RecycLiCo, a critical minerals refining firm, will aid Lucid’s energy storage efforts, promote responsible supply chains and advance the push for increased domestic sourcing of essential materials.
LCID’s Valuation & Estimates
From a valuation standpoint, Lucid appears relatively overvalued. The stock trades at a forward price-to-sales (P/S) ratio of 2.89, above the industry’s 2.68.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LCID’s 2025 sales and earnings indicates year-over-year growth of 67.8% and 25.6%, respectively. The Zacks Consensus Estimate for 2025 and 2026 EPS has moved down a penny each in the past 30 days.
Image Source: Zacks Investment Research
Should You Buy the Stock Now?
Despite all the positives, its stretched balance sheet and lowered output forecast are raising concerns. As of June 30, 2025, Lucid had long-term debt of $2.04 billion, which rose from $2 billion as of Dec. 31, 2024. Its long-term debt to capital ratio is 0.63, higher than the industry’s 0.4.
The company lowered its annual production forecast for 2025 from 20,000 units to a range of 18,000-20,000 units amid tariff-related headwind. Also, despite significant cost-cutting and supply chain adjustments, the company still expects tariff-related headwinds to hurt full-year 2025 profit margins.
Given this mix of factors, new investors shouldn’t rush into buying shares; existing shareholders might retain their holdings.
LCID carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Lucid Stock Plunges 22.7% in a Month: Should You Buy, Sell or Hold?

Lucid Group, Inc. LCID maintained positive momentum toward its volume targets despite persistent challenges in the EV sector, particularly within the supply chain. In the second quarter, Lucid produced 3,863 vehicles, up from 2,110 units in the corresponding quarter of 2024. In light of ongoing market volatility, the company revised its 2025 production outlook to a range of 18,000-20,000 vehicles, down from the prior guidance of 20,000.
The company reaffirmed its commitment to U.S.-based manufacturing to counter the tariff impact and other geopolitical issues and highlighted several recent initiatives. In June, it announced a preliminary agreement with Graphite One to source natural and synthetic graphite domestically starting in 2028, which complemented its existing nonbinding supply agreement signed in April 2024.
Lucid has also partnered with Alaska Energy Metals, Electric Metals USA and RecycLiCo to enhance its supply chain. The company will obtain nickel from Alaska Energy Metals to boost vehicle range, extend battery life and reduce dependence on metals like cobalt. Manganese from Electric Metals will support the development of long-range, high-performance EVs while maintaining battery and passenger safety.
Collaboration with RecycLiCo, a critical minerals refining firm, will aid Lucid’s energy storage efforts, promote responsible supply chains and advance the push for increased domestic sourcing of essential materials. LCID carries a Zacks Rank #3 (Hold) at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Automakers Tackling Supply Chain Snarls
Rivian Automotive, Inc. RIVN produced 5,979 vehicles in the second quarter of 2025, down from 9,612 units in the same period of 2024, as supply chain complexities due to shifts in trade policy impacted operations. Lower production volumes negatively affected Rivian’s automotive gross profit, with approximately $137 million in fixed costs included in cost of revenues compared to more normalized volumes. Rivian expects the launch of the R2 to improve fixed cost absorption, a benefit that will extend beyond the R2 to the R1 lineup.
General Motors Company GM has entered into a multi-year agreement with Texas-based Noveon Magnetics to source neodymium magnets for its full-size trucks and SUVs. The partnership secures a consistent source of rare earth magnets for General Motors, while strengthening its domestic supply chain and reducing dependence on imported critical materials. The magnet deliveries to General Motors began in July.
Lucid’s Price Performance, Valuation and Estimates
LCID has underperformed the Zacks Automotive - Domestic industry year to date. CVNA shares have lost 24.8% compared with the industry’s decline of 14.4%.
YTD Price Performance
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From a valuation perspective, Lucid appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 3.02, higher than its industry’s 2.72.
Image Source: Zacks Investment Research
EPS Estimates Revision
The Zacks Consensus Estimate for 2025 EPS has moved down 4 cents in the past seven days. The Zacks Consensus Estimate for 2026 EPS has moved down a penny in the past 30 days.
Image Source: Zacks Investment Research
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Will Domestic Partnerships Secure Lucid's Supply Chain Future?

Lucid Group’s LCID midsize platform, which is designed to underpin a more affordable line of vehicles compared to its luxury-centric models like the Air and Gravity, presents a key opportunity for the company to expand its addressable market, strengthen manufacturing leverage and deliver a broader value proposition to customers without compromising performance or efficiency. The company is planning to bring the midsize platform to market with greater agility, reduced unit costs and shorter lead times.
Production of the midsize platform is scheduled to begin in late 2026, and the official unveiling is planned for next year. Deliveries are expected to ramp up throughout 2027. While recently acquired Nikola facilities have enhanced Lucid’s capabilities, these additions will not affect the production timeline for the company’s midsize vehicles.
Lucid’s next-generation Atlas Powertrain is designed to match or surpass current efficiency levels at a significantly lower cost, and the company plans to debut it in the midsize platform’s first vehicle. Lucid concluded the second quarter with $4.86 billion in total liquidity, which it anticipates will sustain funding until the second half of 2026, when production of its midsize platform is slated to begin. The platform will feature at least three top hats, including a midsize SUV and a sedan, with starting prices around $50,000. LCID carries a Zacks Rank #3 (Hold) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Affordable Models by Other Automakers
Tesla TSLA recently confirmed that its upcoming affordable electric car will simply be a lower-cost version of the Model Y. The first unit was built in June, and the official launch is planned for later this year. Aimed at broadening the vehicle’s appeal, the more budget-friendly Tesla Model Y is intended to reach a wider customer base and is set to hit the market in the fourth quarter.
Rivian Automotive, Inc. RIVN introduced its R2 model in March 2024. R2 is a compact electric SUV comparable in size to the Tesla Model Y and has a target starting price of about $45,000 before incentives. Designed to be smaller, more pedestrian-friendly and more affordable, the Rivian R2 also features a right-rear charging door optimized for curbside charging. Production R2 is scheduled to begin in the first half of 2026, initially taking place at Rivian’s existing plant in Normal, IL.
Lucid’s Price Performance, Valuation and Estimates
LCID has underperformed the Zacks Automotive - Domestic industry year to date. CVNA shares have lost 24.8% compared with the industry’s decline of 14.4%.
YTD Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, Lucid appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 3.02, higher than its industry’s 2.72.
Image Source: Zacks Investment Research
EPS Estimates Revision
The Zacks Consensus Estimate for 2025 EPS has moved down 4 cents in the past seven days. The Zacks Consensus Estimate for 2026 EPS has moved down a penny in the past 30 days.
Image Source: Zacks Investment Research
See our %%CTA_TEXT%% report – free today!
7 Best Stocks for the Next 30 Days
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Rivian Automotive, Inc.

Price history and volume

Shares 360

Investment risk — medium

Investment potential — medium

Security parameters