Lucid Group Stock Crashes: What’s Driving the Selloff on August 7, 2025?

Lucid Group shares are getting hammered today—here's why the EV darling is bleeding red.

Production woes or demand drought? The luxury EV maker's stock is taking a nosedive as whispers of supply chain snags and softening reservations swirl. No official numbers yet, but the market's voting with its wallet.

Short sellers smell blood. Bears are piling on as Lucid's cash burn rate raises eyebrows. 'Another Tesla wannabe learning the hard way,' quips one Wall Street analyst—because nothing says 'innovation' like betting against the underdog.

Macro shockwaves hit hard. Rising interest rates are crushing growth stocks, and Lucid's premium pricing looks increasingly vulnerable. The Fed giveth, and the Fed taketh away.

One thing's clear: today's plunge proves that in the EV game, you're either charging ahead or getting left in the dust. No coasting allowed.

Lucid's Gravity SUV sales aren't where they need to be

The company's quarterly report revealed soft sales of its new Gravity SUV, a critical product for Lucid's turnaround efforts. The less-than-hoped-for SUV sales meant the company missed Wall Street's targets on its top and bottom lines. Lucid reported a loss of $0.24 per share on $259 million in sales when a loss of $0.21 per share on $280 million was expected.

Image source: Lucid Group.

CEO Marc Winterhoff addressed his frustrations with the performance, telling Yahoo! Finance: "This is something I've said before, and I say it again, we're not where we want to be with the Gravity at this time of the year. We actually wanted to be ahead, making significant ... progress every day," He said that the company's SUV sales WOULD ramp up "drastically" in the second half of the year and help improve the lackluster numbers.

Challenges remain

Expectations for Lucid's early sales of Gravity weren't out of reach by any means. The fact that the company wasn't able to hit them speaks to the difficulty of selling high-priced EVs in this market. Demand for EVs and luxury goods isn't particularly strong at the moment, and competition continues to heat up from Chinese operators. I have serious doubts Lucid can execute a turnaround.