Lucid Stock Crashes 8% as EV Sector Takes a Political Hit

Washington’s latest regulatory salvo sends shockwaves through the EV market—and Lucid investors are feeling the burn.

Another day, another government-induced market tremor. This time it’s luxury EV maker Lucid Group taking an 8% nosedive as policymakers sharpen their knives for the electric vehicle sector. Wall Street’s usual suspects will no doubt spin this as a ’buying opportunity’—right after they finish dumping their own shares.

The EV revolution hits a speed bump. Lucid’s stock plunge mirrors broader sector jitters as DC regulators shift gears. Suddenly, those ambitious production targets look even more... aspirational.

Funny how political headwinds always seem to blow hardest at the worst possible time for shareholders. Almost like someone’s playing a different game entirely.

TLDR

• Lucid Group stock fell 8% Thursday, continuing a week-long decline with 12.3% drop over five sessions
• Trading volume spiked to 237.4 million shares, more than double the 100-day average of 109.7 million
• New legislation eliminates $7,500 EV tax credit for automakers exceeding 200,000 U.S. sales by end of 2025
• The company carries a 45.4% short float, indicating strong bearish sentiment among investors
• Analyst consensus remains “Hold” with average target price of $2.68, ranging from $1.13 to $3.00

Lucid Group shares tumbled 8.17% to $2.41 Thursday, extending a brutal week that has seen the stock lose 12.3% over five trading sessions. The electric vehicle maker’s decline mirrors broader weakness across the EV sector as new legislation threatens industry growth.

Trading activity exploded Thursday with 237.4 million shares changing hands. This volume represents more than double Lucid’s 100-day average of 109.7 million shares, signaling heightened investor concern.

The selloff comes without company-specific news. Instead, the decline appears tied to political developments affecting the entire EV manufacturing space.

President Trump’s “Big Beautiful Bill” passed the Republican-controlled House this week. The legislation targets key EV incentives that have supported industry growth since their introduction.

The bill eliminates the $7,500 EV tax credit for automakers that exceed 200,000 U.S. vehicle sales by the end of 2025. It also introduces annual fees for EV owners and removes various clean energy incentives.

These changes create uncertainty for EV demand going forward. While Tesla may see short-term benefits from a demand spike before the credit expires, analysts expect a sharp drop in 2026.

The regulatory shift has dragged down shares across the sector. Rivian and other EV stocks have also declined as investors reassess growth prospects.

Market Sentiment Turns Bearish

Lucid carries a short float of 45.4%, according to Benzinga Pro data. This high percentage indicates substantial bearish sentiment among traders betting against the stock.

The company’s institutional ownership stands at 75.17%. Recent quarters have seen various hedge funds and institutional investors adjust their positions in both directions.

Analyst coverage remains mixed but leans cautious. The consensus rating sits at “Hold” with an average price target of $2.68.

Recent analyst actions show divided opinions. Redburn Atlantic downgraded shares from neutral to sell in February, slashing their target from $3.50 to $1.13.

Financial Performance Under Pressure

Lucid reported quarterly earnings on May 6th. The company posted a loss of $0.24 per share, missing analyst estimates by one cent.

Solid earnings for $LCID:

– Reiterated 20k cars this year!
– Produced 2,212 vehicles in Q1, excluding over 600 vehicles in transit to Saudi Arabia
– Delivered 3,109 vehicles in Q1; up 58.1% compared to Q1 2024
– $5.76 billion in total liquidity getting them to Atlas…

— BRETT Haynes (@brettdoesstocks) May 6, 2025

Revenue came in at $235.05 million for the quarter. This figure fell short of the $250.50 million that analysts had expected.

Despite the revenue miss, the company did show year-over-year growth. Quarterly revenue increased 36.1% compared to the same period last year.

The company maintains a debt-to-equity ratio of 0.77. Its current ratio of 3.71 and quick ratio of 3.26 suggest adequate liquidity for near-term operations.

Lucid’s market capitalization currently stands at $7.37 billion. The stock trades with a beta of 0.88, indicating slightly lower volatility than the broader market.

The company’s 50-day moving average sits at $2.49, while the 200-day average is $2.58. Current trading levels have pushed the stock below both technical indicators.

Research analysts forecast Lucid will post -1.25 earnings per share for the current fiscal year. The company continues to operate at a loss as it scales production and builds market share.

Thursday’s trading session saw the stock hit a low of $2.54 before closing at $2.41, representing the day’s largest decline in the EV sector.