Lucid Stock Soars 16.6% in July: Here’s What Fueled the Rally
Lucid Motors left skeptics in the dust last month as its stock surged nearly 17%—proving once again that EV hype still moves markets faster than fundamentals.
The Short Squeeze Play: While legacy automakers grumbled about 'overvalued' competitors, Lucid bulls drove the price action with a classic pump-and-hold strategy. No major news? No problem when momentum traders smell blood.
Macro Tailwinds: July's risk-on sentiment gave speculative assets room to run, and Lucid—with its Saudi backers and luxury EV cachet—rode the wave better than most. Because nothing says 'hedge against inflation' like a pre-revenue automaker's stock.
Reality Check: The gain puts Lucid's YTD performance back in the green, but let's not confuse a dead-cat bounce with a turnaround. Until those Arizona factories start delivering more cars than promises, this remains a trader's playground—not an investor's safe haven.
Image source: Getty Images.
Investor interest in Lucid stock is rising
Lucid sells Air sedans and Gravity SUVs. From July 31, the EV Maker equipped all its Air sedans, regardless of model and year of make, with adapters that can work on's supercharger network. Gravity SUVs already had access to Tesla's superchargers.
Meanwhile, denser battery cells have boosted the EPA range estimate for Lucid's 2026 Air Touring model by over 6%, to 431 miles.
Lucid expects high EPA ratings, access to Tesla's extensive public charging network, and other recent enhancements such as advanced driver assistance systems to make its EVs more appealing in an intensely competitive market. In a bid to add to its brand appeal, Lucid also hired actor Timothée Chalamet as its first-ever global brand ambassador in July.
Lucid's robotaxi partnership with(UBER 0.84%), however, sent the stock into a tizzy. Uber will buy over 20,000 Lucid Gravity SUVs equipped with Nuro's Level 4 autonomy software and deploy them over six years, with an expected launch in late 2026. As part of the deal, Uber also plans to invest millions of dollars in Lucid.
Lucid stock could jump 10x if this happens
In July, Lucid proposed a 1-for-10 reverse stock split. A reverse stock split, if it happens, will 10x Lucid's stock price.
There are no real benefits for investors, though, as their investment value in Lucid shares, as well as the company's market capitalization, will remain unchanged. However, a reverse stock split can benefit Lucid in two ways: prevent delisting from the Nasdaq stock exchange, and make its stock more attractive to institutional investors who typically avoid penny stocks.
Lucid needs real catalysts to maintain stock momentum, though. While the Uber partnership will infuse millions in cash and marks Lucid's foray into the autonomous vehicles market, which is expected to hit trillions of dollars by 2030, Lucid's production woes are far from over yet.
Lucid just cut its full-year production guidance to 18,000 to 20,000 vehicles from its previous forecast of 20,000 vehicles. Other than supply bottlenecks, Lucid is struggling with high costs and manufacturing inefficiencies, all of which could impact demand and sales. Lucid is also DEEP in losses, with its net loss rising by 8% to $855 million in the second quarter.
These are just some of the factors that investors should keep in mind before buying Lucid, a stock that has all but wiped out investors' money from its IPO days.
