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The announcement was made in early January, but CES was the first time consumers and investors got to see the partnership in action. SoundHound technology will allow Lucid Assistant to respond to the “Hey Lucid” prompt in the same way consumers interact with Google. Alexa or Siri from Apple.

Lucid Group today

$3.04 +0.08 (+2.70%)

As of 01/15/2025 16:00 Eastern

52 week range

US$1.93

▼

$4.43

Target price

$3.04

In addition to controlling critical functions, the technology will contain all the information contained in the owner’s manual, which can provide drivers with information on virtually every aspect of the vehicle’s functionality.

The announcement, coming on the heels of the company’s launch of the Gravity SUV, its first offering in the space, was enough to send LCID shares up 17.4% in the 30 days ended Jan. 14. against analysts’ top estimates, investors may have to wait until the company’s upcoming earnings report in February to find better direction.

Lucid has passed a major milestone with the launch of its electric vehicles. The company stands out among automotive companies with its combination of luxury and sustainability. The company expects to achieve record sales and delivery levels during the first three quarters of fiscal 2024. Deliveries ahead of production can be seen as a sign of growing demand.

However, the next hurdle is proving an audience that allows for scalability. It won’t be that easy to clean up. In 2024, Lucid will produce a total of about 9,000 vehicles. The good news is that the company will beat its forecast. The caveat is that this number suggests a premium price and the narrow niche that the Lucid car occupies.

Lucid operates in the luxury electric vehicle sector. According to Mordor IntelligenceThe luxury electric vehicle market will be valued at $249.91 billion in 2025 and is expected to grow at a compound annual growth rate (CAGR) of 19.5%. Thus, the estimated market size by 2030 will be $609.1 billion.

For context, if Lucid’s fourth-quarter revenue is roughly the same $200 million it generated in the third quarter, the company’s full-year revenue will be about $775 million. That’s about 3% of the entire market at a time when Lucid is still unprofitable. However, analysts forecast the company’s revenue to be around $1.6 billion in 2025, underscoring the company’s strong position in the luxury electric vehicle market.

Lucid may have a tough road to profitability ahead, but there are some reasons for optimism. Firstly, the company enjoys strong support from major investors such as the Saudi Arabian Public Investment Fund (PIF).

This helped Lucid increase its total liquidity to more than $5.16 billion. And with capital expenditures expected to be around $1 billion in 2024, the company should be on solid footing through 2026. By this time, Lucid plans to release a mid-size SUV, which the company estimates will cost about $50,000.

In the meantime, the company will have to prove it can improve its operating margins. To clarify, the company may not be turning a profit anytime soon, but it should convince investors that profitability matters without further diluting LCID shares as it did in October 2024 when the stock hit a 52-week low.

The electric vehicle revolution is real: the number of vehicles will grow as battery technology and infrastructure improve. However, bullish forecasts alone do not justify owning LCID stock.

To do this, you’ll need to be convinced that this $8.9 billion company can become profitable, or perhaps license some of its technology to generate more revenue, as is the case with Rivian Automotive company NASDAQ: RIVN. The company has openly expressed its willingness to do this, but it needs to find an interested partner.