Lucid Group (LCID) Stock: Trump Tariffs Could Be a Blessing for This American EV Producer

Lucid Group (LCID) Stock: Trump Tariffs Could Be a Blessing for This American EV Producer

TLDR:

• Lucid Group (LCID) stock dropped 1.18% to $2.52, performing better than the broader S&P 500’s 3.46% decline
• LCID gained 18.06% in the past month while its sector lost 3.56%
• Analysts expect improved financials with EPS of -$0.22 and revenue of $235.75 million in upcoming earnings
• Lucid won auction for bankrupt Nikola’s Arizona facilities, gaining 884,000 square feet of manufacturing space
• The acquisition includes plans to hire 300 former Nikola employees and could help Lucid under Trump’s tariff policies

Lucid Group (LCID) stock ended its most recent trading session at $2.52, showing a 1.18% decrease from the previous day. This drop was smaller than the S&P 500’s daily loss of 3.46%, the Dow’s 2.5% decline, and the tech-heavy Nasdaq’s 4.31% fall.

Despite the daily dip, Lucid shares have performed well recently. The electric vehicle maker gained 18.06% over the past month, outperforming both its Auto-Tires-Trucks sector (which lost 3.56%) and the S&P 500 (which lost 5.27%).

Investors are now looking ahead to Lucid’s upcoming earnings announcement scheduled for May 6, 2025. Analysts project the company’s earnings per share (EPS) to be -$0.22, which would represent a 26.67% improvement from the same quarter last year.

Revenue forecasts are also optimistic. The latest consensus estimate calls for revenue of $235.75 million, up 36.48% from the prior-year quarter.

For the full year, Zacks Consensus Estimates predict earnings of -$0.94 per share and revenue of $1.28 billion. These figures would represent year-over-year improvements of 24.8% and 57.84%, respectively.

Strategic Acquisition

In a major development, Lucid has won the auction bid for bankrupt electric truck maker Nikola’s manufacturing facilities and assets in Arizona. This news caused Lucid’s stock to gain approximately 3% in pre-market trading.

The deal includes Nikola’s Coolidge manufacturing facility and Phoenix headquarters, expanding Lucid’s footprint in Arizona by over 884,000 square feet. These facilities come equipped with advanced manufacturing and testing equipment, including battery testing chambers and machining tools.

This acquisition aligns with Lucid’s plans to increase production of its upcoming midsize platform vehicles. The company aims to integrate these facilities into its existing operations to enhance manufacturing capabilities.

Lucid also intends to offer jobs to more than 300 former Nikola employees. This move will bring valuable EV technology expertise into Lucid’s workforce as the company continues to grow.

It’s worth noting that the acquisition doesn’t include Nikola’s core business, customer base, or hydrogen fuel cell technology. The deal still requires approval from the U.S. Bankruptcy Court for the District of Delaware before being finalized.

Tariff Advantages

The current administration’s tariff policies may actually benefit Lucid compared to some competitors. President Trump’s tariffs have increased costs for imported EVs and parts, creating higher expenses for international rivals like Volkswagen and BYD to compete in the U.S. market.

This situation gives Lucid an advantage since it manufactures its vehicles domestically in Arizona. The company’s U.S.-based manufacturing strategy aligns well with the current administration’s focus on domestic production.

Lucid is also working to shift its battery cell production to the U.S. to reduce dependence on imports. This effort further positions the company to potentially benefit from current trade policies.

From an analyst perspective, Lucid currently holds a mixed position on Wall Street. The stock has a Hold consensus rating based on one Buy, six Holds, and three Sells assigned in the last three months.

The average price target for Lucid stock is $2.30, which implies an 8.73% downside potential from current levels. This suggests analysts remain cautious about the company’s near-term prospects despite recent positive developments.

Market participants should continue monitoring analyst revisions as they can often signal changing business trends. The Zacks Rank system currently rates Lucid Group as a #3 (Hold), placing it in a neutral position.

Within its industry classification, the Automotive – Domestic industry currently has a Zacks Industry Rank of 197, putting it in the bottom 21% of all 250+ tracked industries. This ranking indicates that Lucid’s broader industry faces some challenges compared to other sectors.

The company’s recent acquisition move, however, demonstrates its commitment to expanding manufacturing capacity and potentially improving its market position. This strategic decision could help support Lucid’s planned production increases in the coming years.

As Lucid prepares to announce its quarterly earnings next month, investors will be watching closely to see if the company can meet or exceed the projected improvements in both revenue and earnings per share.

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