There are plenty of different sport utility vehicles (SUVs) out there. For Lucid Group (LCID), an electric vehicle startup, to join in the fray might seem a bit like whistling in the dark, trying desperately to look brave and nonchalant when you are secretly terrified. But the new Gravity SUV is coming out for orders nonetheless, and investors did not take it well, sending shares down over 2.5% in Tuesday afternoon’s trading.
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The Gravity SUV almost sounds like a “bet-the-company” strategy in the making, as Lucid is—according to a CNBC report—looking for a “significant increase” in sales volumes from it to cut the company’s overall losses. This is the second release from Lucid, the first being the Air sedan, which has not been a major seller for Lucid ever since its release back in 2021.
Lucid hopes to turn that around with the Lucid Grand Touring, which will start taking orders on November 7, with a price tag of—brace yourself for this one—$94,900. If that is too rich for your blood, don’t fret: an entry-level model, the Gravity Touring, will be out in late 2025 and sell for a comparatively meager $79,900. Lucid believes there is a “six to one ratio” of demand for the SUV against the sedan, and if that turns out to be the case, this could be at least a comparative winner.
But At Least The Air Is Safe
While people may be about as interested in the nearly six-figure new SUV as they are in extended oral surgery, there is one development that should be more helpful to Lucid than it seems to be. The National Highway Traffic Safety Administration (NHTSA) recently revealed the Lucid Air line—including the Pure, the Touring, the Grand Touring and the Sapphire—are all recipients of five-star safety ratings.
The NHTSA measures for frontal crashes, side crashes, and rollover safety, and the Lucid line landed top marks in every case. Therefore, those who do have a Lucid can rest easy knowing that it is about as safe as any car on the road can be.
Is Lucid Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on LCID stock based on seven Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 39.68% loss in its share price over the past year, the average LCID price target of $3.05 per share implies 23.73% upside potential.
