Why Lucid Motors Shares Soared This Week

This year has been a struggle for many early-stage electric vehicle (EV) companies. Competition has increased, giving consumers more choices in more vehicle segments. The Lucid Group (LCID 4.22%) is one that has struggled to achieve high-volume sales as overall EV sales growth has slowed globally.

This has sent the stock down 33% over the past year. But Lucid is about to launch its first offering outside of the luxury sedan segment. That helped the stock rebound 9.5% this week as of Friday morning, according to data from S&P Global Market Intelligence.

Lucid prides itself on engineering and technology

Lucid operates at the top level of the automotive sector. Its 2025 Air model sedans range in price from nearly $70,000 to $249,000 for the fully equipped Sapphire trim, which can deliver more than 1,200 horsepower.

Lucid has focused on developing leading-edge EV technologies for those vehicles in the early stages of its development. Its battery technology, for example, offers a range of over 500 miles. Now it plans to apply that knowledge to its new all-electric SUV, which it highlighted at a technology presentation and production day this week. The Gravity SUV is slated to go into production next year, giving Lucid a new market to tap into.

But its SUV platform will also be priced in the luxury category, somewhat limiting its market reach. However, at this week’s presentation, the company also revealed a smaller, mid-size crossover vehicle platform. It claims the new offering will arrive in late 2026, with a price tag starting below $50,000.

A vehicle outside the luxury category is what Lucid will need to survive and thrive. Investors now see a path to that with an upcoming mid-sized platform. The Gravity SUV itself will be a big step towards a mass-market offering. But investors this week liked what they saw with the launch of Gravity and the plan for a lower-priced EV coming from Lucid.