Prediction: Lucid Group Will Soar in 2026. Here's 1 Reason Why.

Source The Motley Fool

It's been a mixed year for Lucid Group (NASDAQ: LCID). Shares of this electric vehicle (EV) stock have fallen alongside competitors including Tesla and Rivian Automotive, yet analyst expectations for Lucid's sales growth have surged. Right now, Wall Street experts expect the company to nearly double sales in 2025.

This could be your opportunity to buy into a high-growth stock at a discount. But if you're really looking for big growth potential, pay attention to Lucid's growth prospects starting in 2026.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

This one thing will put Lucid's growth on steroids

Lucid stock is down 17% so far in 2025, and shares are trading at just 7.4 times trailing sales. That's a discount to competitors like Tesla, but a premium to other EV makers like Rivian. Lucid's relative premium to Rivian makes a lot of sense. The recent introduction of Lucid's Gravity SUV platform is expected to help sales nearly double this year. Rivian, meanwhile, isn't expected to release any new models this year.

Thanks to this expected sales growth, Lucid stock trades at just 5 times forward sales. But looking even further ahead, there's reason to believe that Lucid will hit another sales inflection point in 2026 due to one major event.

RIVN PS Ratio Chart

RIVN PS Ratio data by YCharts

Last year, it was revealed that Lucid expects to begin production on three new more affordable models, all of which should cost under $50,000. At the time, this timeline seemed aggressive, especially considering its Gravity SUV had yet to be released. Last week, however, Derek Jenkins, a senior vice president at Lucid, confirmed that the company is currently "on track" to begin production of an affordable SUV model in 2026, though he noted that there are "a lot of crazy things going on in the world that can affect that [timeline]."

This new Lucid model is expected to compete with Tesla's existing Model Y and Rivian's anticipated R2 midsize SUV. If the company's timeline remains intact, it could see another huge spike in sales growth next year.

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

Before you buy stock in Lucid Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $680,390!*

Now, it’s worth noting Stock Advisor’s total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Nasdaq Index Rises for 10 Straight Days, Why Has Tesla Barely Risen?On April 14, the Nasdaq notched its tenth consecutive session of gains, marking its longest winning streak since 2023. It has risen nearly 14% from its recent lows, as the 'Magnificent Se
Author  TradingKey
9 hours ago
On April 14, the Nasdaq notched its tenth consecutive session of gains, marking its longest winning streak since 2023. It has risen nearly 14% from its recent lows, as the 'Magnificent Se
placeholder
Gold eases from four-week top as Hormuz risks temper USD weaknessGold (XAU/USD) hits a nearly four-week high during the Asian session on Wednesday, though it lacks follow-through buying and currently trades just below the $4,850 level, nearly unchanged for the day.
Author  FXStreet
12 hours ago
Gold (XAU/USD) hits a nearly four-week high during the Asian session on Wednesday, though it lacks follow-through buying and currently trades just below the $4,850 level, nearly unchanged for the day.
placeholder
Silver Price Forecasts: XAG/USD approaches $78.00 boosted by Iran peace hopesSilver (XAG/USD) is rushing higher on Tuesday, reaching fresh two-week highs right below $78.00 at the time of writing, after bouncing from lows around $72.60 on Monday.
Author  TradingKey
Yesterday 10: 01
Silver (XAG/USD) is rushing higher on Tuesday, reaching fresh two-week highs right below $78.00 at the time of writing, after bouncing from lows around $72.60 on Monday.
placeholder
Trump Blockade of Strait of Hormuz Drives Oil Price Surge, Will This Be Another TACO? On Sunday (April 13), Trump announced following the breakdown of U.S.-Iran negotiations that the U.S. Navy would impose a maritime blockade on Iranian ports starting Monday.Following the
Author  TradingKey
Apr 13, Mon
On Sunday (April 13), Trump announced following the breakdown of U.S.-Iran negotiations that the U.S. Navy would impose a maritime blockade on Iranian ports starting Monday.Following the
placeholder
U.S.-Iran Standoff in the Strait of Hormuz. Iranian-Controlled Strait Has Not Resumed Passage; Why Does Trump Still Want a Military Blockade?Following the failure of U.S.-Iran peace talks, President Trump announced on Sunday that the U.S. Navy will immediately blockade the Strait of Hormuz and prevent any vessels that have pai
Author  TradingKey
Apr 13, Mon
Following the failure of U.S.-Iran peace talks, President Trump announced on Sunday that the U.S. Navy will immediately blockade the Strait of Hormuz and prevent any vessels that have pai
goTop
quote