Lucid Group: A Critical Juncture for the Electric Vehicle Maker

Lucid Group's stock is facing a severe test of investor confidence. Although shares saw a modest 2.5% uptick to $13.72 on Friday, the broader picture remains stark. Since the start of the year, the electric vehicle manufacturer has shed a staggering 59% of its market value. The company is pinning its hopes on a more affordable SUV model, but substantial capital-raising activities and a record level of short-selling continue to exert downward pressure.

The company's third-quarter 2025 results laid bare its significant challenges. A net loss of $2.65 per share fell well short of market expectations. While revenue showed strong growth, climbing 68.3% to $336.6 million, persistently high operating costs are consuming those gains. The financial landscape is further complicated by several critical metrics:

• Current Capital Measure: An $875 million convertible note offering.
• Market Capitalization: Now standing at just $4.4 billion.
• Short Interest: A threatening 33% of the freely tradable float.
• Key Technical Level: A crucial support mark at $13.30.

The Gravity SUV's Make-or-Break Role

Central to Lucid's turnaround strategy is the new Gravity SUV, with a starting price of $79,900. The question for investors is whether this lower-priced vehicle can gain traction in an increasingly competitive EV sector. Recent market activity suggests skepticism; Friday's trading volume was a mere 3.2 million shares, significantly below the average, indicating that institutional investors are largely staying on the sidelines.

Should investors sell immediately? Or is it worth buying Lucid Group?

Navigating the Short Seller Onslaught

With one-third of its free float sold short, Lucid is a prime target for bearish bets. This extreme positioning, however, carries inherent risk for those short sellers. Should the Gravity SUV launch exceed expectations, it could trigger a violent short squeeze, forcing a rapid covering of positions and a sharp upward move in the stock price.

From a technical perspective, the immediate focus is on the $13.30 support level. A sustained break below this point could catalyze a new wave of selling. Conversely, for any meaningful bullish reversal to gain credibility, the equity would need to establish a firm footing above $14.00. The market is now weighing whether Lucid can execute this pivotal recovery or if the company's prospects have already dimmed beyond repair.