Lucid Is Down More Than 50% in the Past Year, but Here's Why the Stock Could Turn Things Around

Electric vehicle (EV) company **Lucid Group **(LCID +3.49%) hasn’t been a good buy in recent years, and that’s putting it lightly. Its valuation today is a fraction of what it was when it first went public, nearly five years ago. And even over the past 12 months, the stock has still incurred massive losses of more than 50%.

But the good news is that there can potentially be a contrarian case to be made at this stage for investing in the company. While it’s still a risky investment, here’s why the automotive stock might have the potential to turn things around in the future.

Image source: Getty Images.

The company plans to scale and diversify its business

EVs have typically catered to higher-income consumers, but Lucid is looking at making them more affordable, which will help the business scale its operations. The company is launching a new midsize vehicle that will cost around $50,000, in line with competitors’ pricing for entry-level vehicles.

The company is also diversifying its revenue stream and is turning to robotaxis to drive further growth. It recently unveiled a concept for a two-seat robotaxi, although it didn’t specify when it might be available. Lucid has also partnered with Uber and Nuro on an autonomous robotaxi program centered around its Gravity SUV, which is expected to launch later this year.

Plus, in the near future, Lucid plans to generate around $1 billion in annual revenue from software subscriptions and other services, in a further attempt to diversify its cash flow.

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NASDAQ: LCID

Lucid Group

Today’s Change

(3.49%) $0.34

Current Price

$10.23

Key Data Points

Market Cap

$3.2B

Day’s Range

$9.91 - $10.31

52wk Range

$9.12 - $33.70

Volume

3.7M

Avg Vol

7.4M

Gross Margin

-9280.51%

Lucid is risky, but it may be moving in the right direction

Last year, Lucid incurred an operating loss of $3.5 billion, on revenue of a little under $1.4 billion. While the company has experienced strong growth as sales rose by 68% in 2025, the big concern is the feasibility of its operations. With losses such as these, it can be difficult for investors to want to take a chance on the company.

There is a potential path for Lucid to improve its financials and become a better investment down the road through its diversification strategy. However, it won’t be easy, and it’s definitely not a guarantee. But with management focused on diversifying, scaling, and generating more revenue, there’s reason for some optimism.

For most growth investors, Lucid is probably too risky a stock to own, and you may be better off just keeping it on your watch list. But if you have a high risk tolerance and can stand the volatility that comes with it, it could make for an intriguing contrarian buy.