Lucid Group's stock dropped 6.3%

Lucid Group's (NASDAQ:LCID) stock slid 6.3% in pre-market trading on Monday as investors digested news of a Saudi supercomputing partnership and potential tariff implications. The EV maker is set to report first-quarter earnings on Tuesday.

Lucid is known for its high-priced electric sedans, beginning at $108,803. The company's partnership with King Abdullah University of Science and Technology (KAUST) in Saudi Arabia will give Lucid access to supercomputing systems for developing new components and autonomous driving technologies.

However, the timing of this Saudi partnership has raised concerns among investors.

Recently, the Trump administration announced 100% tariffs on foreign movies. While the latest round of tariffs are on non-physical products, investors are keeping an eye on whether this could signal potential expansion to foreign-originated designs.

This is relevant to Lucid as its majority stakeholder is the Public Investment Fund (PIF) from Saudi Arabia, which has been the main source of financing for Lucid.

This relationship has provided Lucid with regular capital injections.

The latest partnership with KAUST allows the company to use supercomputing systems for development work.

Some analysts at Cantor Fitzgerald (NYSE:CFR) noted that Lucid's Q1 delivery numbers aligned with their estimates and showed improvement over the previous year.

They also noted that Lucid's domestic operations may help it avoid some tariff impacts that could affect other automakers. The company's U.S.-based manufacturing provides some insulation from potential trade policy changes.

The upcoming earnings call will also likely address the recent $1.1 billion raised by Lucid through convertible senior notes. These funds are aimed at supporting growth and general corporate purposes.

For the first quarter, Lucid provided revenue guidance between $232 million and $236 million. The company maintains its full-year 2025 production guidance at 20,000 vehicles.

Analysts will be watching closely for updates on gross margins. Lucid is working to improve from previous negative figures, with analysts expecting negative gross margins of approximately 95% for Q1.

The earnings call will likely address the initial sales performance of the new Gravity SUV. Updates on the progress of the high-volume midsize SUV are also expected.

This midsize model has a targeted production start in late 2026 and a starting price below $50,000, representing an important step into more affordable market segments.

In 2024, Lucid delivered 10,241 vehicles and produced 9,029 vehicles. The company is looking to build on this foundation in 2025.

Cantor Fitzgerald maintained a Neutral rating on Lucid with a price target of $3. The stock opened at $2.53 on Monday, with analyst price targets ranging from $1 to $5.

This midsize model has a targeted production start in late 2026 and a starting price below $50,000, representing an important step into more affordable market segments.

Some analysts, like those at Cantor Fitzgerald, noted that Lucid's Q1 delivery numbers aligned with their estimates and showed improvement over the previous year.

The upcoming earnings call will also likely address the recent $1.1 billion raised by Lucid through convertible senior notes. These funds are aimed at supporting growth and general corporate purposes.

The 2026 Lucid Gravity SUV promises a driving range of up to 450 miles and rapid charging capabilities. Its performance in the market will be crucial for the company's expansion plans.

Some analysts see potential for Lucid to capture more market share, particularly as recent Tesla (NASDAQ:TSLA) sales have shown signs of slowing. However, it remains to be seen how quickly Lucid can ramp up production to meet the rising demand.