Why Lucid Stock Plummeted 65% Last Year and has Continued to Move Lower in 2026
Key Points
Lucid launched its Gravity SUV last year, which helped boost vehicle production and delivery numbers.
The business continued to post huge losses.
The company's reverse stock split and new stock sales also pushed Lucid's share price lower.
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Lucid (NASDAQ: LCID) stock got hit with a big valuation pullback across 2025. The electric vehicle (EV) specialist's share price fell 65% in the year, according to data from S&P Global Market Intelligence. The S&P 500 gained 16.4% over the period, and the Nasdaq Composite surged 20.4% over the stretch.
Lucid's valuation lost ground as the business continued to post large losses. The company's reverse stock split and new fundraising initiatives also pushed its share price lower.
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Lucid's new SUV wasn't enough to lift the stock in 2025
The launch of Lucid's Gravity SUV helped the company post substantial growth for vehicle production and deliveries. Reviews for the Gravity were also generally quite strong, and the vehicle has pushed the company into a valuable new product category.
On the other hand, Lucid continued to rack up big losses last year. The fourth-quarter 2024 report the company published in February arrived with a net loss of $636.9 million, and the business recorded a net loss of approximately $2.62 billion across the first three quarters of 2025.
Lucid stock also moved lower in conjunction with a 1-for-10 reverse stock split carried out by the company. In August, shareholders received 10 shares for each share of Lucid stock that they owned. The reverse stock split removed the risk that the company could be delisted from the Nasdaq exchange for falling below the $1 per share minimum pricing requirement, but it was also followed by a substantial valuation pullback for the stock. While a higher share price can sometimes be attractive from a psychological standpoint for some investors, reverse stock splits are often followed by big sell-offs.
Lucid stock also lost ground following fundraising moves. In November, the company announced that it had completed sales of new stock. The company generated roughly $962.4 million in proceeds from the sale to Saudi Arabia's Public Investment Fund (PIF) and other institutional investors, and it used roughly $752.2 million to repurchase outstanding 1.25% convertible senior notes due to mature this year. While the share sale gave the company some extra flexibility, it once again had a dilutive impact for shareholders.
Why Lucid stock has continued to stall in 2026
At the beginning of 2026, Lucid published its Q4 and full-year production and delivery numbers for 2025. The company produced 18,378 vehicles last year and delivered 15,841 vehicles -- good for growth of 104% and 55%, respectively. While production has gone up dramatically, growth for deliveries appears to be decelerating.
On Jan. 6, Baird published new coverage on Lucid and maintained a neutral rating on the stock. On the other hand, the investment firm lowered its one-year price target on the stock from $17 per share to $14 per share.
Lucid stock has continued to lose ground in response to the underwhelming deliveries data and new analyst coverage. The stock has fallen 1.8% year to date despite the Nasdaq Composite index climbing 1.9% across the stretch.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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