Think It's Too Late to Buy Lucid Group? Here's the Biggest Reason Why There's Still Time.

Key Points

• Lucid Group's sales are forecast to spike in the coming year.

• The company's shares remain cheap for one reason.

• 10 stocks we like better than Lucid Group ›

Electric-vehicle (EV) maker Lucid Group (NASDAQ: LCID) is forecast to see a massive boost in sales. Analysts believe revenue will grow by more than 70% this year, with another 97% growth expected in 2026.

Think the market is already pricing in this growth? Think again. Lucid stock remains surprisingly cheap for one obvious reason.

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Lucid Group stock is cheap, but there's a catch

Why is Lucid's sales base expected to skyrocket in 2026 and 2027? Earlier this year, the company started production of its Gravity SUV platform. As a category, SUVs have outsold sedans for years in the U.S.

More than half of all vehicles sold domestically are now SUVs. Because Lucid only had a single vehicle in its previous lineup -- a sedan called the Lucid Air -- the introduction of its new Gravity SUV model essentially doubled its lineup while adding an arguably more attractive option for buyers.

Image source: Getty Images.

Lucid's near-term growth rate is expected to trounce other EV stocks like Rivian (NASDAQ: RIVN) and Tesla (NASDAQ: TSLA). Yet its valuation is stuck somewhere between the two.

Excitingly, Lucid could potentially sustain its high growth rates for years to come. In 2026, the automaker expects to start production of three new models. All are expected to be priced under $50,000 apiece, making its vehicles more affordable to millions of new potential buyers.

Data by YCharts.

Why is Lucid stock still trading with a market cap of just $6.4 billion? There's one obvious reason.

Lucid remains significantly smaller than Tesla. It's also less than half the size of Rivian on a market-cap basis. This limits its access to capital -- a critical disadvantage in a capital-intensive industry.

Lucid has big plans for growth. However, over the past decade alone, at least 30 EV makers have gone under.

Execution risk is a real concern. Shares are cheap for a reason, but they're still a reasonable bet for patient and aggressive growth investors.

Should you invest $1,000 in Lucid Group right now?

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Ryan Vanzo 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.