Lucid Group, Inc. ( LCID ) shares are trading higher Friday after the company announced that commenced production of its second vehicle, the Gravity SUV.

What To Know: On social media, Lucid Group ( LCID ) posted a video of CEO Peter Rawlinson driving the Gravity SUV within the factory. Lucid described the start of production as a significant milestone and noted the efforts of its team in bringing the vehicle to market.

Lucid recently began taking orders for the Gravity, starting with the Grand Touring trim priced at $94,900. Production for the lower-priced Touring trim, starting at $79,900, is scheduled to begin in late 2025. The Gravity is positioned to compete directly with Tesla Inc ( TSLA ).'s Model X, which is similarly priced at $79,990 for the base model and $94,990 for the premium Plaid trim.

According to Rawlinson, the Gravity enters a market six times larger than Lucid's first vehicle, the Air sedan. Rawlinson has stated that the SUV is designed to offer a more traditional three-row SUV experience compared to the Model X, which he described as “car-like.”

Lucid has also indicated plans to produce a midsized platform priced at approximately $48,000 by late 2026, targeting Tesla's mass-market offerings, the Model 3 and Model Y. Despite these expansion efforts, Lucid continues to operate at a loss. The company reported an adjusted loss of 28 cents per share for the third quarter of 2024.

Lucid shares have declined nearly 50% year-to-date. Analysts have given the stock a consensus "Neutral" rating, with price targets ranging from $2 to $12. The average price target from recent analyst ratings stands at $3.33, implying a potential 59% upside from current levels.

LCID Price Action: Lucid Group ( LCID ) shares were up 7.89% at $2.255 at the time of writing, according to Benzinga Pro.

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