TLDR:
- Lucid stock fell 6.3% on Monday amid concerns over a new Saudi partnership
- Trump administration’s tariff policies could potentially impact Lucid given its Saudi backing
- Q1 earnings report coming Tuesday with expected delivery of 3,109 vehicles
- Cantor Fitzgerald maintained Neutral rating with $3 price target
- Gravity SUV performance and midsize SUV progress will be key topics in earnings call
Lucid Group’s stock dropped 6.3% on Monday as investors reacted to news about a Saudi supercomputing partnership and potential tariff implications. The EV maker is set to report first-quarter earnings on Tuesday.
Lucid announced a new collaboration with King Abdullah University of Science and Technology (KAUST) in Saudi Arabia. The partnership will give Lucid access to supercomputing systems for developing new components and autonomous driving technologies.
The timing of this Saudi partnership has raised concerns among investors due to the Trump administration’s recent tariff announcements. While the latest 100% tariff targeted foreign movies, some worry this could signal potential expansion to non-physical products or foreign-originated designs.
Saudi Partnership Raises Questions
The Saudi Arabia connection is both a strength and potential vulnerability for Lucid. The Public Investment Fund (PIF) is Lucid’s majority stakeholder and has been its main financing source.
This relationship has provided Lucid with regular capital injections. The latest partnership with KAUST allows the company to use supercomputing systems for development work.
However, the Trump administration’s weekend announcement of a 100% tariff on foreign movies has sparked concerns. While previous tariffs focused on physical goods, this move signals possible expansion to non-physical products.
Investors worry this could eventually affect foreign-originated designs like those potentially coming from Saudi collaborations.
Q1 Earnings Preview
Lucid will report its first-quarter results after market close on Tuesday. The company has already shared some preliminary numbers.
In Q1, Lucid delivered 3,109 vehicles, up from 1,967 in the first quarter of 2024. The company produced 2,212 vehicles and sent an additional 600 to Saudi Arabia for final assembly.
Lucid has provided revenue guidance between $232 million and $236 million for Q1. The company maintains its full-year 2025 production guidance at 20,000 vehicles.
Analysts will be watching closely for updates on gross margins. Lucid is working to improve from previous negative figures, with analysts expecting negative gross margins of approximately 95% for Q1.
The earnings call will likely address the initial sales performance of the new Gravity SUV. Updates on the progress of the high-volume midsize SUV are also expected.
This midsize model has a targeted production start in late 2026 and a starting price below $50,000. It represents an important step into more affordable market segments.
Lucid’s financial position shows a strong current ratio of 4.18. Cash holdings exceed debt, though the company continues to burn through cash at a high rate.
In 2024, Lucid delivered 10,241 vehicles and produced 9,029 vehicles. The company is looking to build on this foundation in 2025.
Cantor Fitzgerald reiterated a Neutral rating on Lucid with a $3 price target. The stock currently trades around $2.53, with analyst targets ranging from $1 to $5.
The firm noted that Lucid’s Q1 delivery numbers aligned with their estimates and showed improvement over the previous year.
Lucid’s domestic operations may help it avoid some tariff impacts that could affect other automakers. The company’s U.S.-based manufacturing provides some insulation from potential trade policy changes.
The upcoming earnings call will also likely address the recent $1.1 billion raised through convertible senior notes. These funds are aimed at supporting growth and general corporate purposes.
The 2026 Lucid Gravity SUV promises a driving range of up to 450 miles and rapid charging capabilities. Its performance in the market will be crucial for the company’s expansion plans.
Some analysts see potential for Lucid to capture more market share, particularly as recent Tesla sales have shown signs of slowing.
