2 weeks ago
10
Will Ebiefung, The Motley Fool
Fri, February 20, 2026 astatine 10:20 AM CST 4 min read
Long-term investing is the cardinal to epic returns successful the banal market. But this strategy tin besides exposure your portfolio to staggering losses if you stake connected the incorrect institution astatine the incorrect time.
Early investors successful Lucid Group (NASDAQ: LCID) cognize this acquisition well. Shares successful the electrical conveyance (EV) start-up person shed an eye-popping 90% of their worth since their special intent acquisition company (SPAC) was listed successful 2020.
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The embattled automaker continues to conflict with lackluster maturation and spiraling losses. That said, determination mightiness yet beryllium airy astatine the extremity of the tunnel. Let's research however Lucid's breathtaking semipermanent maturation catalysts could play retired implicit the adjacent decennary and beyond.
Lucid is inactive successful a hard position, but determination are aboriginal signs that its turnaround whitethorn already beryllium starting. Third-quarter gross jumped 68% twelvemonth implicit twelvemonth to $336.6 million, driven by grounds accumulation and transportation figures. And portion the remainder of the EV manufacture is buckling nether the Trump administration's withdrawal of EV taxation credits, Lucid hasn't missed a beat.
Lucid's fourth-quarter deliveries jumped 72% compared to the anterior twelvemonth play and 31% compared to the 3rd quarter. For comparison, Tesla and Rivian Automotive saw fourth-quarter deliveries diminution by 16% and 26%, respectively, chiefly due to the fact that of the nonaccomplishment of U.S. EV taxation credits successful October. Lucid's request whitethorn beryllium immune to this situation due to the fact that its high-end vehicles were mostly excessively costly to suffice for the incentive.
Despite the bully news, Lucid isn't retired of the woods yet. The institution inactive faces challenges from utmost currency burn, with third-quarter operating losses surging 22% to $942 million. This is an astounding magnitude of wealth for a institution with a marketplace cap of $3.3 cardinal to suffer successful a three-month period. And it puts investors successful a precise uncomfortable presumption arsenic they hold for the turnaround to prime up steam.
Lucid's currency pain makes its equity unattractive for ample backstage assemblage investors. But the company's narration with Saudi Arabia's Public Investment Fund (PIF) could springiness it an important lifeline. The oil-rich kingdom is trying to diversify its system distant from fossil fuels, and it sees Lucid arsenic an important instrumentality toward achieving this goal.
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