Should You Buy Lucid While It's Below $10?

Lucid (NASDAQ: LCID) stock is down 90% over the past three years, as the electric vehicle market has come under immense pressure from slowing sales and the company's own financial hurdles. As of this writing, its shares are trading for just under $10.

If you're hoping to scoop up Lucid stock in the hopes that it'll rebound, I understand the temptation. But it's probably not a good idea.

Image source: Lucid.

Why Lucid stock seems appealing

Lucid has one of the most impressive electric vehicles on the market. Not only is its Air sedan a great-looking luxury EV, but it also holds the world record for the longest distance driven on a single charge, at a stunning 749 miles.

You don't achieve something like that without impressive tech under the hood, and Lucid deserves credit for it. What's more, Lucid doubled its vehicle production in 2025 to 18,378 vehicles, and deliveries rose 55% to 15,800. The company is clearly making some progress.

Lucid is also working on a cheaper EV model that will start around $50,000 -- right around the average cost of a new car -- which could help the company appeal to more buyers. The vehicle is expected to begin production later this year and is significantly cheaper than the starting price of about $70,000 for its Air sedan.

Why investors should still avoid Lucid

All of the above being said, Lucid stock probably isn't the good deal it seems at first blush. The first, and probably most significant, problem with Lucid right now is the company's losses. They reached $1 billion in the third quarter (which ended Sept. 30), a significant gap from the company's $337 million in sales.

I wouldn't be surprised if Lucid continues to have a difficult time narrowing its losses as the company prepares for the launch of its lower-priced EV. Launching a new vehicle and ramping up production is expensive, and Lucid is already burning through cash.

Making matters worse for Lucid and the entire EV industry is that sales of electric vehicles are falling. Cox Automotive reports that EV sales in the U.S. fell 36% in the fourth quarter of 2025, year over year. Electric vehicle sales could certainly rebound, but the EV tax credit program was terminated prematurely by the Trump administration, and vehicle costs are on the rise. All of this means EV automakers have their work cut out for them when it comes to convincing American consumers.

Lucid's vehicle sales are rising, but the big problem is that they're still very low. Selling just over 18,000 vehicles in a year isn't going to make Lucid a success, and it's unclear at this point what that catalyst could be. A cheaper EV might help, but it's a risky bet given the company's mounting losses.

Chris Neiger 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.