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News  ›  Benzinga

Lucid Takes On Tesla: $50K Crossover Is Coming For The Model Y

Benzinga Logo Benzinga By Erica Kollmann
Lucid Takes On Tesla: $50K Crossover Is Coming For The Model Y

Lucid Group is shifting from ultra-luxury to mass market with a new $50K midsize crossover (Project Midsize/Lucid Earth) scheduled for late 2026 production to compete with Tesla's Model Y. However, the company faces significant challenges as its Gravity SUV has experienced a sluggish rollout with minimal early sales, production issues, and a 60% stock decline in 2025. The affordable crossover represents a critical survival moment for the cash-burning automaker in an increasingly competitive EV landscape.

Insights
SNPS   neutral

Only briefly mentioned with no substantive details about performance


LCID   negative

Despite the upcoming $50K crossover offering potential upside, Lucid faces severe near-term headwinds: Gravity SUV has failed to gain traction with minimal registrations, production guidance was trimmed, the stock dropped 60% in 2025, and the company is burning cash. The new crossover is positioned as a 'do-or-die' necessity for survival rather than a growth catalyst, indicating fundamental operational challenges.