Lucid Group Inc. (LCID), an emerging player in the electric vehicle (EV) market, has announced the commencement of production for its much-anticipated second vehicle, the Gravity SUV. The production milestone was celebrated at the company’s state-of-the-art factory in Arizona, underscoring Lucid’s ambitious plans to expand its reach in the EV space.
The news was shared by Lucid via its official handle on the social media platform X, accompanied by a video featuring CEO Peter Rawlinson test-driving the Gravity SUV inside the Arizona facility. “Today marks an exciting landmark for our company. Production of the Lucid Gravity is now underway at our factory in Arizona!” the post read, highlighting the dedication of the Lucid team in bringing this groundbreaking SUV to life.
Pricing and Availability
Lucid opened reservations for the Gravity SUV last month, offering two trims to customers. The Grand Touring version starts at $94,900, with production already underway. A more affordable Touring trim, priced at $79,900, will enter production in late 2025.
The Gravity SUV is expected to broaden Lucid’s customer base significantly. Compared to its first model, the luxury Air sedan, Lucid estimates that the market for the Gravity is six times larger.
Competing with Tesla’s Model X
The Lucid Gravity is set to challenge Tesla Inc.’s Model X, a popular SUV in the EV segment. While the Model X starts at $79,990 for the base model and $94,990 for the premium Plaid version, Lucid is positioning the Gravity as a more spacious alternative with a proper three-row design.
CEO Rawlinson emphasized this during the company’s first-quarter earnings call, describing Gravity as a vehicle with “significant opportunity” in a market niche that the Model X has not fully captured. He confidently called it “the world’s best SUV.”
Future Plans and Challenges
Looking ahead, Lucid is planning to launch a high-volume midsized EV priced at $48,000 by late 2026. This model aims to directly compete with Tesla’s mass-market offerings, the Model 3 and Model Y.
Despite its ambitious growth strategy, Lucid faces financial challenges. The company reported an adjusted loss of 28 cents per share for the third quarter of 2024. Lucid’s stock performance also reflects investor caution, closing at $2.09 on Tuesday, a nearly 50% decline year-to-date.
Market analysts have a consensus “Neutral” rating for Lucid’s stock. Price targets range from a low of $2 to a high of $12, with recent analyses by RBC Capital, RF Lafferty, and Cantor Fitzgerald averaging a target of $3.33, implying a potential upside of 59%.
The start of production for the Gravity SUV marks a significant step forward for Lucid Motors as it seeks to solidify its position in the competitive EV market. By focusing on a larger addressable market and offering innovative designs, the company hopes to capture the interest of both premium and mass-market consumers, despite current financial hurdles.
