Lucid Stock Is Cheap, but Does That Make It a Buy Now?

By Reuben Gregg Brewer – Mar 16, 2026 at 11:15PM ESTKey PointsLucid is an electric vehicle start-up with award-winning technology.The company's production is still very small, and capital investment will remain high for years to come.The electric vehicle market has grown rapidly over the last few years, with Tesla (TSLA +1.16%) going head-to-head with Chinese EV giant BYD Auto. Hidden beneath these two giants are a collection of smaller companies, such as Rivian (RIVN +3.13%) and Lucid (LCID +0.10%), which are still in start-up mode. Lucid, in particular, has seen its stock price fall 98% from its peak, making it look very cheap. But is it worth buying? Lucid is moving forward The good news is that Lucid is making material strides in its production levels. In 2025, the company nearly doubled its production volume and increased deliveries by over 70% in the fourth quarter. Lucid's electric vehicles also continue to win awards, suggesting its products are well respected. And the company continues to build out its business. Image source: Getty Images. The downside is that building an auto business is a capital-intensive, time-consuming effort. So while it is a huge success for Lucid to have produced 8,412 EVs in the fourth quarter of 2025, Tesla produced 434,358. Lucid is still far behind the industry leaders on the production front. Lucid is also far behind Rivian in an important way What's interesting is that Lucid's production is much closer to that of fellow start-up Rivian. Rivian produced 10,974 vehicles in the final quarter of 2025. Both companies have a lot of spending to do as they build out their respective automotive businesses. But there's a very important difference that you shouldn't ignore. ExpandNASDAQ: LCIDLucid GroupToday's Change(0.10%) $0.01Current Price$9.91Key Data PointsMarket Cap$3.2BDay's Range$9.79 - $10.2252wk Range$9.12 - $33.70Volume134KAvg Vol7.4MGross Margin-9280.51% Rivian generated a gross profit in 2025. That's not the same as earnings, but it means that Rivian is generating more revenue from selling its cars than it costs to produce them. Lucid is still losing money on every vehicle it sells, with revenues of $1.35 billion in 2025 compared to cost of goods sold of $2.61 billion. While the company is planning to be cash flow positive by the end of the decade, it still has a material amount of work to do before it is anywhere near that point. Lucid is cheap, but it is cheap for a reason Lucid is only appropriate for aggressive investors. And even then, you will need to tread with caution. It operates in a highly competitive industry and, at this point, it is little more than a rounding error relative to its more established competitors on the production front. Despite building award-winning EVs, it is still far from clear that it will become a sustainably profitable business.Read NextMar 12, 2026 •By Ryan VanzoWhy I Wouldn't Touch Lucid Stock With a 10-Foot PoleMar 11, 2026 •By Ryan VanzoWhy I'm Avoiding Lucid Stock Like the PlagueMar 8, 2026 •By Daniel MillerFinally, a Little Good News for Lucid InvestorsMar 6, 2026 •By Leo SunLucid (LCID) Stock Is Trading Near Its Lows.

Is It Finally Time to Buy?Mar 5, 2026 •By Chris NeigerDespite Production Guidance, Lucid Still Has a Long Road AheadMar 1, 2026 •By Ryan VanzoLucid's Former Chief Engineer Sold $4 Million of LCID StockAbout the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedLucid GroupNASDAQ: LCID$9.91(+0.10%)+$0.01TeslaNASDAQ: TSLA$395.74(+1.16%)+$4.54Rivian AutomotiveNASDAQ: RIVN$15.33(+3.13%)+$0.47*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.