Lucid Group stock rises 8.66% after Q1 2025 earnings beat and new studio expansion in New Jersey

Why Did Lucid Group Stock Surge 8.66% on May 9, 2025?

Lucid Group, Inc. (NASDAQ: LCID) closed at $2.51 on May 9, 2025, up 8.66% in regular trading on surging investor interest following the company’s Q1 2025 earnings report and the launch of a new retail and service location in New Jersey. The uptick in share price was driven by a combination of improving delivery metrics, reaffirmed production guidance, a strong liquidity buffer, and technical indicators that signaled a potential bullish breakout.

The session recorded unusually high volume at 160.65 million shares, significantly above the average daily trading volume of 103.37 million. Technical analysis further supported bullish momentum, with the price climbing above its 50-day moving average ($2.34) and inching closer to the 200-day average ($2.83), which now presents as a moderate resistance level. Lucid’s Relative Strength Index (RSI) stood at 61, suggesting positive sentiment without yet entering overbought territory.

How Did Lucid Perform in Q1 2025 Financially?

Lucid delivered 3,109 vehicles during the first quarter of 2025, reflecting a 58.1% year-over-year increase, compared to 1,967 units in Q1 2024. Production totaled 2,212 units, excluding over 600 vehicles in transit to Saudi Arabia. The company reported revenue of $235.0 million, falling slightly below analyst expectations of $243 million but still representing notable growth over the prior year’s $172.7 million.

GAAP net loss stood at $366.2 million, or $(0.24) per share, while non-GAAP adjusted net loss per share improved to $(0.20). Lucid’s adjusted EBITDA loss narrowed modestly to $563.5 million from $598.4 million a year ago. The company burned $428.6 million in operating cash and $161.2 million in capital expenditures, resulting in negative free cash flow of $589.9 million. Despite these losses, Lucid ended the quarter with $5.76 billion in total liquidity, which it believes is sufficient to fund operations into mid-2026.

Research and development expenses decreased to $251.2 million, down from $284.6 million in Q1 2024, signaling continued cost management efforts. Selling, general, and administrative (SG&A) expenses remained largely flat at $212.2 million. The margin profile remains challenging with cost of revenue exceeding sales at $463.6 million, but efficiency initiatives are beginning to show incremental impact.

How Did the Market React to Lucid’s Strategic Execution?

Market sentiment following the earnings release has turned moderately positive, largely due to operational improvements and signs that the Lucid Gravity SUV is gaining commercial traction. Interim CEO Marc Winterhoff stated that Lucid was “building momentum” as Gravity deliveries ramped and brand presence expanded. CFO Taoufiq Boussaid added that Lucid was “executing against near-term goals” while positioning the company for long-term value creation.

Institutional interest has remained robust. As of the latest filings, Lucid Group has approximately 75.17% institutional ownership. Notable institutional holders include the Saudi Public Investment Fund and Vanguard Group Inc. Net institutional inflows totaled $1.53 billion over the past 12 months, with minimal outflows of just $30.72 million. The concentrated nature of this institutional backing provides a degree of confidence despite persistent financial losses.

What Is the Strategic Significance of the New Jersey Studio Opening?

On May 8, Lucid opened its latest Studio, Service, and Delivery Center in Rutherford, New Jersey—its 43rd location in North America and 58th globally. Located at the junction of highways 17 and 3, the facility is strategically placed to serve the Tri-State area, which includes lucrative EV markets in New Jersey, New York, and Pennsylvania.

Erwin Raphael, Lucid’s Vice President of Revenue, emphasized the role of the Rutherford site in delivering exceptional customer experiences and servicing a rapidly expanding owner base in the region. With existing Studios in Short Hills, White Plains, Manhattan, Plainview, and King of Prussia, Lucid continues to reinforce its direct-to-consumer model—a key differentiator in the luxury EV market.

Lucid Studios are designed not only to showcase vehicle features but also to deepen customer engagement, blending in-person consultations with digital configurator tools. This hybrid approach plays a crucial role in scaling brand presence while keeping overhead lower than traditional dealerships.

What Are Analysts Saying About LCID Stock Now?

Wall Street analysts remain mixed in their outlook. Two analysts currently rate Lucid as a “sell”, eight as “hold”, and two as a “buy”, with a consensus average target price of $2.68. While this price target indicates a modest 7% upside from current levels, recent delivery acceleration and operational milestones may prompt upward revisions if Lucid can demonstrate continued momentum through Q2.

From a technical standpoint, the recent surge past the 50-day moving average has reignited interest from short-term traders. The RSI reading of 61 suggests that the stock is in bullish territory but not yet overextended. If Lucid can breach the 200-day moving average resistance at $2.83, a technical breakout could invite fresh momentum-driven inflows.

Fundamentally, the company’s $5.76 billion in liquidity and continued capital support from key investors are viewed as mitigating factors against the sustained operating losses. Investor focus remains on execution of the Gravity SUV ramp-up, margins, and product diversification into mid-size platforms expected in late 2025 and 2026.

What Are the Buy/Sell/Hold Signals Based on Current Data?

Buy:

Investors with a high-risk appetite and long-term growth horizon may consider building a position in LCID based on improving delivery trends, Gravity SUV traction, and robust institutional backing. The company’s extensive liquidity and technology edge in powertrain and battery systems are longer-term positives.

Hold:

For existing shareholders, holding the stock appears prudent. The company is meeting key milestones on production and delivery while managing costs effectively. Near-term upside may be limited, but improving sentiment and studio expansion support a stabilizing narrative.

Sell:

Investors sensitive to cash burn and negative free cash flow might opt to reduce exposure, particularly if Lucid fails to meet Q2 delivery expectations or if Gravity sales plateau. While liquidity is strong, profitability remains distant, and external risks such as pricing pressure from Tesla and legacy OEMs persist.

What’s the Forward Outlook for Lucid Group?

Lucid has maintained its full-year 2025 production target of 20,000 vehicles, more than doubling the 9,029 units delivered in 2024. The next few quarters will be crucial in validating its ability to scale the Gravity SUV platform and reduce cost per vehicle. Management also hinted at broader initiatives including a mid-size vehicle program and potential new market entries, possibly in Europe and the Middle East.

Investors will closely monitor capital discipline, international expansion strategy (especially the AMP-2 facility in Saudi Arabia), and updates on technology licensing opportunities. As the EV market faces macroeconomic pressure and tightening credit conditions, Lucid’s success will depend on its ability to execute flawlessly on operational and financial metrics.