Everyone wants to invest in the next Tesla (TSLA -0.32%), and an examination of analyst predictions suggests Lucid Group (LCID -1.16%) has the potential to be it. Sales are expected to grow by 73% this year, with another 96% growth expected in 2026.

There's just one problem with buying the stock at the moment: Lucid shares trade at 6.7 times sales, a pricey valuation for a business that might be unprofitable for at least the next several years. If you dig deeper, however, Lucid shares might be wildly undervalued despite the high price-to-sales ratio (P/S).

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This chart shows Lucid Group's true potential

Despite generating less than 1% of Tesla's revenue, Lucid Group still trades at roughly half the valuation of Tesla on a price-to-sales basis. That could all change when the company releases its "mass market" vehicles. Management has previously teased three new vehicle models that will all sell for less than $50,000 a piece.

While these vehicles are still a year or two away from production, they should eventually put Lucid's growth in overdrive. Tesla released its Model 3 in 2017, with the Model Y following in 2020. These two affordable vehicles now account for more than 90% of Tesla's sales -- the primary reason that Tesla's sales have gone from a few billion dollars to more than $95 billion today.

Data by YCharts.

Lucid has a very long way to go before matching Tesla's revenue numbers. But releasing more affordable models is the key to closing the gap. If management is to be believed, the first of several mass market models will arrive sometime in 2026, with more on the way in 2027 and beyond.

It should be stressed that Lucid's financial position isn't incredibly strong right now. It has less than $1.9 billion in cash on the balance sheet, yet it lost nearly $2.4 billion over the last 12 months.

More cash will need to be raised to get these new models to market. However, Tesla's success shows Lucid's true potential.