Lucid Group Inc (LCID) shares plummeted 5.32% during intraday trading, as investors express concerns over the electric vehicle maker's production goals and financial challenges. The stock's sharp decline comes amid growing skepticism about the company's ability to compete in the increasingly crowded EV market.

Despite Lucid's plans to double its production to approximately 20,000 vehicles in 2025, analysts and investors remain cautious. This production target, while ambitious for the company, still falls significantly short of established competitors. For context, industry leader Tesla produced nearly 1.8 million EVs in 2024, while fellow EV startup Rivian Automotive manufactured around 49,500 vehicles.

Adding to the pressure on Lucid's stock is the company's precarious financial position. The EV maker reported a staggering loss of over $3 billion in 2024, up from $2.8 billion the previous year. More alarmingly, Lucid has openly stated that it only has enough liquidity to operate through the latter half of 2026. This financial forecast has raised serious concerns about potential dilution of shareholder value through future stock issuances or the possibility of taking on significant debt to fund operations.

As Lucid grapples with these challenges, investors are closely watching the company's balance sheet and its ability to secure additional funding. The EV sector's competitive landscape and Lucid's struggle to scale production efficiently have cast doubt on its long-term viability, contributing to today's sharp stock decline.