Benchmark on Thursday released a new research note on Lucid Motors, saying that the stock could more than double, citing confidence in the EV maker’s path to scale despite a slight miss in second-quarter deliveries.
The new research note followed a meeting with Lucid’s chief financial officer, Taoufiq Boussaid.
On the Gravity SUV, Lucid’s second model, the analyst said demand “remains strong” and noted that deliveries are expected to “accelerate in the second half of the year as production stabilises.”
In May, interim CEO Marc Winterhoff acknowledged that the model’s production ramp had been delayed by supply chain issues but said Lucid remained on track to meet its 2025 production targets.
The model was first unveiled in November 2023 at the Los Angeles Auto Show. Pre-production units rolled off the line eight months later, while final production units were completed eleven months after the initial debut.
As reported by EV earlier this week, a recent drone flyover of Lucid Motors’ Casa Grande facility in Arizona indicated an acceleration in Gravity SUV production, with approximately 600 units observed across multiple parking areas.
On Thursday, Lucid’s Middle East chief Faisal Sultan said on the Arab News podcast that the first deliveries in the region will begin “very soon,” adding that they are “just around the corner.”
Without disclosing a forecast for Gravity deliveries this year, the analyst said Benchmark estimates Lucid to deliver 16,776 vehicles this year, up 63.8% when compared to the 9,029 units recorded in 2024.
Legg says the upcoming mid-size platform will allow a “meaningful volume growth beyond current levels.”
“We believe the upcoming Midsize platform, with SOP targeted for late 2026, will support meaningful volume growth beyond current levels,” Benchmark’s analyst said in the note while adding that the firm doesn’t expect gross profitability to arrive before 2027.
“While we do not expect LCID to reach gross profitability before 2027, requiring sustained quarterly deliveries above 12,000 units,” Legg wrote.
Based on its reported first-half production of 6,675 vehicles — combining 2,812 units in Q1 and 3,863 in Q2 — the company would need to manufacture 13,325 additional units in the second half to reach its guidance, implying a near-doubling of output in H2.
As of the end of March, Lucid reported an accumulated deficit of $13.3 billion, according to its most recent filing with the U.S. Securities and Exchange Commission.
The company has been recently increasing headcount in key areas, listing over 740 open positions as it gears up for full-scale production in Saudi Arabia. Lucid is also developing a new mid-size EV platform to support three upcoming models.
