Lousid group ,Lymph -1.13%, One appears to be one of the beneficiaries of TeslaRecently stumble and decline. Lucid management mentioned the trading for a less politically charged ride in trading customers in its Teslas. And while the comprehensive American electric vehicle (EV) industry is struggling to grow severally anticipated, Lucid has established itself very well for development in the coming year.

But does it all finally buy it? Let’s know.

Set the record

The comprehensive EV industry can now be sputter, and investors may be struggling with the effect of tariff, but lucids have caught fire, in a good way. Lucid distributed 3,109 vehicles during the first quarter, which jumps a solid 58% compared to the previous year.

It marked the sixth straight quarters for record delivery, and it comes correct on its most recent launch, Luusid Quick Production and delivery for The Gravity SUV. Lucids were satisfied only by producing all the inventory required for employees, studios and test driving only recently, and can now accelerate production for mainstream consumers.

For those investors who have become accustomed to strong distribution of lucid after years of disappointments, the good news is that Gravity SUVs should easily proceed with company results. In fact, the gravity SUV estimates that the size of the market of the air sedan of lucid is the size of the market. Analysts expect the sales of lucids to increase by 73% in 2025 and another 96% in 2026 than earlier years.

It is also not taking into account the upcoming midsize platforms that will outline many models on the more economical value tag.

The growth of lucid also comes at a good time as once prominent EV player Tesla is facing consumer backlash due to a brief tenure in CEO Elone Musk’s politics, resulting in a downwards of sales in major markets. In fact, Mark Winterhoff, the interim CEO of Luusid, also stated that in recent months the orders of former Tesla drivers were dramatically provoked.

Is Luusid a purchase now?

Despite a stable American EV market, with speed in the corner of lousid in the near period, it may seem like a good time for long -term investors to jump. But some things are to consider.

The first red flag came after reporting a loss of approximately $ 400 million fourth quarter when the EV manufacturer announced that CEO Peter Rallinson, who led the company for 12 years, would be stepped down. Lucid tried his best to reduce the situation, but analysts were not buying it, as far as the product development stall could be, consumer demand can be reduced, and additional funds may be at risk.

It is also true that one of the biggest risks facing lousid investors has access to the company’s funding. The youth company is rapidly burning through cash; Its shareholder weakening is accelerating; And Saudi Arabia’s Public Investment Fund (PIF) owns about 60% lucids through several investments in the life of the company.

On one hand, it is a well -funded companion that gives attractive access to very essential capital. On the other hand, it is never a good thing to be so dependent on an investor. Should Saudi’s PIF support, it will be a large -scale overhang on the stock and funding will have to reach more challenging and expensive.

Finally, for the higher speed and capacity as lousid, most investors right now have a lot of uncertainty in front of the company. The company needs to find the correct leadership to lead the company and assure investors.

It also needs to reduce its cash burning while improving the scale and margin. In addition, it needs to navigate potential price increase due to disruption in potential industry supply, declining in broad EV demand and tariffs. The lousid needs to execute the production ramp of gravity SUV and is a hit with consumers.

If lucid does all those things, then there may be time to buy in front of the company. Goes to its next development stage Powered by a new midsize platform and more affordable price tags of approximately $ 50,000.