Lucid Group Inc (LCID) saw its stock price plummet 5.21% in pre-market trading on Tuesday, as investors grappled with concerns over the company's future in a challenging electric vehicle (EV) market. The sharp decline comes amid a broader slowdown in U.S. EV sales growth and persistent profitability issues for the luxury EV maker.

The U.S. EV market has experienced a significant deceleration, with sales growth dropping from 40% in 2023-2024 to just 10% in 2024-2025. This slowdown, coupled with Lucid's substantial losses per vehicle, has raised investor concerns. Despite recent growth, Lucid is losing approximately $222,000 per vehicle sold, with operational costs of $927 million against just $235 million in revenue last quarter.

Adding to the pressure, Lucid's new Gravity SUV is viewed as a potential make-or-break product rollout. While the company expects to deliver 20,000 total vehicles in 2025, more than doubling its 2024 figures, investors remain cautious about Lucid's ability to achieve profitability in the highly competitive EV market. The stock's sharp decline reflects these ongoing challenges and uncertainties surrounding Lucid's future performance.