Everyone wants to discover the next Tesla. Now one of the most valuable companies in the world, long-term Tesla investors have been extremely happy with their portfolios. For good reason, many investors believe that Lucid (LCID 1.34%) is set to become the next Tesla. The company's sales grew heavily in 2024, and analysts expect sales to grow by another 118% in 2025, pushing revenue well past the $1 billion mark.
Think it's too late to jump in? Think again. There's still time to buy this electric car stock for one important reason.
The electric vehicle (EV) craze is just getting started
Lucid is ramping up its electric vehicle sales at the right time. Whereas scores of EV makers in the past were attempting to sell into a market where less than 1% of all vehicles sold were electric, Lucid is operating in a market where nearly one in 10 vehicles sold is electric. According to S&P Global, 2026 should prove to be a "tipping" point for EV sales, with a staggering 25% of all vehicles sold in the U.S. projected to be electric by 2030. Despite a difficult 2024, S&P Global believes that the "auto industry's transition to EVs is accelerating."
Last quarter, Lucid began production of its Gravity SUV platform, which analysts believe will help sales more than double in 2025. Importantly, Lucid's two models currently in production are priced as luxury vehicles, costing between $70,000 and $100,000 depending on options. Most of the future EV demand will come from cheaper mass market models, not luxury models that only a few can afford.
Fortunately, Lucid management revealed last year that three new mass market models are in the works, with production slated to begin in late 2026 -- just as the EV market is expected to reach an inflection point. Sure, Lucid's sales base is already growing quickly. However, the company is well-placed to capitalize on a long-term growth trend, and is building the product range needed for strong competition.
