Lucid Group (NASDAQ:LCID) shares are trading volatile Tuesday following the company's announcement that deliveries of its electric Gravity SUV began over the weekend.

What To Know: The news signals Lucid's entry into the competitive electric SUV market, positioning Gravity as a direct rival to Tesla's Model X.

Lucid confirmed the initial deliveries of the Gravity SUV through a post on X, featuring a video of customers departing its Casa Grande, Arizona, factory. The Gravity, available in a Grand Touring trim starting at $94,900, aims to appeal to a broader market compared to Lucid's previous Air sedan. The company expects production of a lower-priced Touring trim, starting at $79,900, to begin in late 2025.

Lucid CEO Peter Rawlinson stated that the Gravity addresses a market six times larger than the company's previous offerings, describing the vehicle as a three-row SUV designed to compete with and surpass the capabilities of Tesla's Model X. Despite this milestone, Lucid continues to face challenges, reporting a third-quarter adjusted loss of 28 cents per share and remaining unprofitable. The company plans to expand further with a midsized platform priced at around $48,000, set for late 2026 production, to compete with Tesla's Model 3 and Model Y.

Lucid shares have dropped over 24% year-to-date, with a consensus price target of $5.04 among analysts. The stock has faced varying projections, from a high of $12 to a low of $2, reflecting ongoing uncertainty about the company's profitability and market traction.

LCID Price Action: Lucid Group shares were initially up 1.31% before reversing down 3.02% to $3.05, according to Benzinga Pro.

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