Lucid Q3 2025 Earnings: Key Results and What They Mean for Investors

Imagine you’re baking a big cake for a party, but you keep running into problems—sometimes the oven breaks, sometimes you run out of sugar. That’s a bit like what’s happening with Lucid, the electric car company, right now. Investors are watching closely to see if Lucid can get things right before the party ends.

Why Lucid’s News Matters for Investors

Lucid is one of a few companies trying to challenge Tesla and Rivian in the electric vehicle (EV) world. When a company misses its goals or changes its plans, it can affect not just its own stock, but also how people feel about the whole EV sector. That could impact your portfolio if you own shares in EV makers or companies tied to this industry.

The Good News: Bullish Points

• Revenue Growth: Lucid’s revenue jumped 68% from last year, showing they’re selling more cars even during tough times.
• Big Backers: Saudi Arabia’s Public Investment Fund (PIF) increased its support, offering Lucid access to about $2 billion in loans. This gives Lucid a financial safety net until at least the first half of 2027.
• Exciting Partnerships: Lucid signed a $300 million deal with Uber to provide over 20,000 Gravity SUVs for autonomous rides and also teamed up with Nvidia for smart car technology.
• Industry Growth: Global EV sales are expected to reach 14 million units in 2024, up from 10 million in 2022, according to the International Energy Agency.

The Bad News: Bearish Points

• Missed Expectations: Lucid’s losses were bigger than Wall Street predicted, and its revenue was lower than expected.
• Lowered Goals: Lucid cut its production target for the year, now planning to make around 18,000 cars instead of the original goal of 20,000.
• Ongoing Losses: The company lost $978 million in just one quarter. While this is a bit less than last year, it’s still a big number.
• Production Problems: Lucid’s new Gravity SUV is having supply chain issues, and production is not ramping up as fast as hoped.
• Stock Performance: Lucid’s stock is down over 40% this year, including after a reverse stock split, while rival Rivian’s stock is up 16%.
• Industry Slowdown: Demand for EVs is cooling off in the U.S., making it tougher for all automakers, not just Lucid.

Comparisons and Context

Lucid’s struggles stand out even more when you look at competitors. Rivian, another EV maker, recently beat Wall Street’s expectations and saw its stock rise. This shows that while the whole EV market is challenging right now, some companies are finding ways to shine.

Historically, car companies often lose money for years before turning a profit. For example, Tesla didn’t make a yearly profit until 2020, almost two decades after it was founded. Investors need to be patient, but also realistic about the risks.

Investor Takeaway

• Watch the Cash: Lucid has enough money to keep going for a few years, but pay attention to cash burn and new funding announcements.
• Monitor Production Updates: Keep an eye on whether Lucid can actually ramp up Gravity SUV production as promised.
• Compare to Rivals: See how Lucid stacks up to Rivian, Tesla, and others. Outperforming rivals can boost confidence; lagging can hurt shares.
• Be Cautious with New Tech: Exciting partnerships are good, but they need to deliver real results before they matter to your bottom line.
• Know Your Risk: EV stocks can swing wildly. Consider if you’re comfortable with the ups and downs before adding Lucid to your portfolio.

Lucid’s journey is full of twists and turns, just like baking that big cake. If they can get the recipe right, investors could be rewarded—but there’s still a long road ahead.

For the full original report, see CNBC