Lucid Group Inc (LCID) shares surged 5.37% in Tuesday's trading session, demonstrating a remarkable rebound despite the company's ongoing challenges. The electric vehicle maker, which has seen its stock plummet by over 95% from its post-merger high, is showing signs of renewed investor interest as the market weighs its potential for a turnaround.

The rally comes as Lucid faces several critical challenges in 2025. The company is currently searching for a new permanent CEO following Peter Rawlinson's unexpected departure in February. This leadership transition is occurring at a crucial time, as Lucid ramps up production of its new Gravity SUV and plans to launch a cheaper mid-size SUV in 2026. Investors are closely watching how the company will reset expectations and navigate its ambitious growth plans, given its history of missing production targets.

Despite these hurdles, Lucid maintains a strong liquidity position of $6.14 billion, which it claims will provide a financial runway into the second half of 2026. However, the company's heavy reliance on Saudi Arabian backing and ongoing share dilution remain concerns for some investors. As Lucid works to overcome these challenges, including reducing its dependence on a single major investor and slowing down dilution, today's stock movement suggests that some market participants are betting on the company's potential to right the ship and capitalize on the growing electric vehicle market.