Lucid Group (NASDAQ: LCID) currently has a market capitalization of under $7 billion, representing less than 1% of Tesla’s market size. Sales are projected to grow by 78% this year and another 96% next year. However, analysts from Bank of America warn of a significant risk following the unexpected resignation of CEO Peter Rawlinson after a Q4 loss of $397 million, which may hinder product development and consumer demand.
Despite having $1.9 billion in cash, Lucid reported a loss of $2.4 billion over the past year. The company has raised $1.75 billion recently but continues to face high cash burn and share dilution. Analysts speculate that Lucid may need around $500 million quarterly to remain operational, though substantial funds will be required for the production of mass-market vehicles set to start in late 2026.
Lucid has accelerated share sales by roughly 30% in six months to cover funding needs, but the stock’s future remains uncertain if capital access continues to dwindle, potentially jeopardizing its survival within the next year.
