Lucid Group (LCID) shares extended gains on Tuesday after ride-hailing giant Uber Technologies (UBER) more than doubled its stake in electric vehicle (EV) maker to 11.5%.
The announcement arrives only days after UBER signed an agreement to purchase 35,000 Lucid vehicles and raised its overall capital commitment to the company to $500 million.
Lucid stock nonetheless remains down nearly 40% versus its year-to-date high.
Lucid Stock Still Isn’t Worth Buying in 2026
Despite the headline excitement, Lucid continues to grapple with significant financial challenges that warrant playing the EV stock with caution at current levels.
The firm’s cost of revenue continues to exceed its actual revenue, and that too by a massive margin. In Q4, for example, the cost of sales came in at $945 million against total revenue of roughly $523 million.
Lucid has pre-announced its first-quarter revenue as well, which missed consensus estimates by an alarming 35%.
Even from a technical perspective, LCID shares are just as unattractive. As of writing, they remain decisively below their major moving averages (MAs), reinforcing that bears are firmly in control across multiple timeframes.
Dilution Risks Continue to Haunt LCID Shares
Shareholder dilution remains a central concern for LCID investors as well.
The Newark-headquartered firm’s shares outstanding have grown at roughly twice the rate of rival Rivian Automotive (RIVN) over the past three years.
And unlike RIVN, which achieved its first full year of positive gross profit in 2025, Lucid has yet to achieve the profitability milestone.
Note that Lucid shares have a history of closing April nearly 12% in the red and gaining just 0.61% in May — a seasonal pattern that makes them even less attractive to own in the near term.
More importantly, prediction markets have priced the probability of LCID declaring bankruptcy before 2027 at a concerning 44.5%.
How Wall Street Recommends Playing Lucid Group
Despite the aforementioned risks, however, Wall Street continues to view Lucid Group as undervalued at current levels.
According to Barchart, while the consensus rating on LCID stock sits at a “Hold” only, the average price target of about $13 signals potential upside of a whopping 85% from here.
This article was created with the support of automated content tools from our partners at Sigma.AI. Together, our financial data and AI solutions help us to deliver more informed market headline analysis to readers faster than ever.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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