Lucid (LCID) Valuation Check as Gravity SUV Production, Nvidia Deal and Forecast Cut Reshape the Story

Lucid Group (LCID) is back in the spotlight after kicking off production of its Gravity electric SUV, opening Gravity Touring orders across North America and Canada, and unveiling a fresh AI partnership with Nvidia.

See our latest analysis for Lucid Group.

Despite the buzz around Gravity production and the Nvidia tie up, Lucid’s 1 month share price return of around negative 23 percent and deeply negative multi year total shareholder returns show momentum is still fading as investors reassess execution and funding risks.

If Lucid’s story has you watching the EV space more closely, this could be a good moment to scan other auto innovators via auto manufacturers and compare how they stack up.

So with Gravity now rolling off the line, Nvidia in the mix, and the stock still deeply in the red, are markets overlooking a long term rebound or already pricing in all of Lucid’s future growth?

Most Popular Narrative Narrative: 30.1% Undervalued

With Lucid Group last closing at $12.88 versus a narrative fair value of $18.43, the valuation case leans on aggressive growth and scaling assumptions.

The newly announced Uber and Nuro partnership, including a planned $300 million Uber investment and a commitment to deploy at least 20,000 Lucid Gravity vehicles as robotaxis over six years, is expected to open a large and fast-growing autonomous fleet market to Lucid, driving significant revenue expansion and potential margin improvement via technology licensing and high-volume fleet sales.

Read the complete narrative.

Curious how a fast ramp in autonomous fleets, steep revenue growth, and a richer margin profile are combined, then discounted at 12.5 percent to justify that upside?

Result: Fair Value of $18.43 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent negative gross margins, along with heavy reliance on external capital and potential shareholder dilution, could quickly undermine this upbeat long term valuation story.

Find out about the key risks to this Lucid Group narrative.

Another View: Multiples Point To Rich Pricing

While the narrative fair value suggests upside, Lucid trades at about 3.9 times sales versus roughly 0.9 times for the broader US auto group and 1.3 times for peers, far above the fair ratio of 0 times. That gap implies meaningful valuation risk if sentiment or growth expectations slip.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Lucid Group Narrative

If the conclusions here do not quite match your own thinking, dive into the numbers yourself and build a fresh Lucid thesis in minutes, Do it your way.

A great starting point for your Lucid Group research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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