Tesla drivers are switching to Lucid in big numbers

Lucid Group Inc (NASDAQ: LCID) is seeing a sharp increase in orders as “negative feelings about Elon Musk” continue to make people “look for an option to not continue having a Tesla.”

In fact, former Tesla owners have accounted for about half of the orders the EV maker has received over the past two months, its chief executive, Marc Winterhoff, revealed in a recent interview with Fox Business.

Still, Lucid shares are down some 30% versus their year-to-date high at the time of writing.

Why are Tesla drivers looking for alternative EV brands

Musk’s role in politics has dragged Tesla’s good name through the mud in 2025.

There have been protests, incidents of vandalism, and even arson at Tesla stores as the billionaire continues to lay off federal employees and cut government costs as the head of President Trump’s DOGE.

His ties with the US president have already resulted in a big hit to TSLA sales in recent months, and Lucid’s update today suggests the weakness could continue moving forward.  

Lucid has recently launched its first electric SUV that’s also helping increase its appeal for Tesla owners currently on the lookout for an alternative EV brand.  

While Lucid stock remains in the red for the year, it has rallied about 20% over the past three weeks.

Lucid is well insulated from Trump tariffs

Lucid may be equally appealing for investors this year as it’s exceptionally insulated from a 25% tariff the US recently announced on all imported vehicles.

Why? Because LCID assembles all of its vehicles in Arizona.

From battery modules to e-motors, Lucid currently makes everything in the United States, Winterhoff added in his interview with Fox Business.  

His comments of a “dramatic uptick” in orders in recent months are particularly significant since Lucid already delivered a record 3,099 vehicles in its latest reported quarter.

However, Lucid shares do not currently pay a dividend and, therefore, remain unattractive for income investors in 2025.

Is it worth buying LCID shares in 2025?

While Lucid stock hasn’t had a particularly great start in 2025, the story moving forward could be different, according to analysts at Cantor Fitzgerald.

The investment firm reiterated its $3 price target on LCID shares this morning, indicating potential for another 25% upside from current levels.

Cantor experts remain believers of Lucid’s ability to deliver EVs with more efficient batteries, longer range, and faster charging times compared to rivals.   

Plus, the company’s management is committed to producing a total of 20,000 vehicles this year, which would mean a more than 100% increase on a year-over-year basis.

However, Cantor Fitzgerald still rates the EV stock at “neutral” only due to concerns of negative gross margin and the fact that Lucid may have to raise more capital moving forward.

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