EV startup Lucid Group Inc. (NASDAQ:LCID) said on Thursday that it has commenced production of its second offering – the Gravity SUV – at its factory in Arizona.
What Happened: “Today marks an exciting landmark for our company. Production of the Lucid Gravity is now underway at our factory in Arizona!,” Lucid said in a post on social media platform X.
The post was accompanied by a short video of Lucid CEO Peter Rawlinson driving the vehicle in the factory.
Lucid started taking orders for Gravity last month. Orders are now being taken for the Grand Touring trim of the SUV starting from $94,900. Production of the lower-priced Touring trim of the vehicle, starting at $79,900, will start only in late 2025, the company previously said.
Lucid, which entered the EV market with its premium Air sedan, is looking to expand its total addressable market with the Gravity. Rawlinson previously said that with Gravity, the company has now entered a “market that’s about 6 times larger than our addressable market last year with Air.”
Why It Matters: The Gravity is expected to rival Tesla Inc.’s (NASDAQ:TSLA) Model X SUV which starts at $79,990 for the base version and at $94,990 for the more premium Plaid version.
During Lucid’s first-quarter earnings call in May, the CEO said that Gravity has a "significant opportunity" that the Model X did not capture. While the Model X is a bit car-like, the Gravity is a proper three-row SUV and is on track to become the "world's best SUV," he said.
Lucid is also looking forward to starting production of a high-volume midsized platform priced at around $48,000 in late 2026 as a direct competitor to Tesla’s mass-market offerings Model 3 and Model Y.
The company, however, is yet to make a profit. For the third quarter, the EV company reported an adjusted quarterly loss of 28 cents per share.
Price Action: Lucid shares closed down by about 0.5% on Tuesday at $2.09. The stock is down by nearly 50% year-to-date, according to data from Benzinga Pro.
Overall, analysts have a consensus rating of “Neutral” on Lucid stock, with the highest price target being $12 and the lowest being $2. The most recent analyst ratings by RBC Capital, RF Lafferty, and Cantor Fitzgerald have an average price target of $3.33, implying a 59% upside.
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Photo courtesy: Lucid
