Lucid Group Inc ( LCID ) reported record deliveries in the fourth quarter as the company prepares to grow in the electric vehicle sector.

The company enters 2025 with strong momentum and the launch of a second vehicle model.

What Happened: Lucid launched the highly anticipated Gravity three-row SUV in late 2024.

In January, Lucid sold 50 Lucid Gravity SUVs, according to data from Motor Intelligence reported by Electrek. The company had total sales of 665 units in January, consisting of the Gravity vehicles and 615 Lucid Air sedans.

The sales figure is among the highest monthly totals in Lucid history, falling shy of the record 780 deliveries in the month of December.

This represents a 51% year-over-year increase for Lucid for January, which could illustrate how important the launch of the Gravity was, giving the company a second model and important entry into the SUV sector.

Lucid reported deliveries of 3,099 vehicles in the fourth quarter, a company record at the time. Quarterly deliveries were up 79% year-over-year in the fourth quarter.

Read Also: Lucid Q3 Earnings: Revenue Beat, EPS Beat, On Track To Produce 9K Vehicles In 2024

Why It's Important: The Gravity SUV, which has a starting price of $94,900 will help Lucid compete with the Tesla Model X from Tesla Inc ( TSLA ) and the Rivian R1S from Rivian Automotive ( RIVN ) .

The company also plans to launch its lower-priced version of the Gravity later this year with a starting price of $79,900.

With the potential end of the federal EV tax credit, Tesla is expected to benefit from its lower prices. Lucid has not been among the sales leaders for EVs, but has received attention and praise for its technology.

The early success of the Gravity could go a long way to showing that Lucid has staying power in the electric vehicle sector.

Lucid reports fourth-quarter financial results Feb. 25, which could offer more commentary on how Gravity demand and momentum is fairing.

LCID Price Action: Lucid stock closed Wednesday at $2.91 versus a 52-week trading range of $1.93 to $4.43. The stock is up in the last several trading days, but shares remain down 10% over the past year. The stock is up over 40% from its year lows hit in December.

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Courtesy: Lucid