The electric vehicle (EV) market has long been dominated by sedans and compact SUVs, but a new frontier is emerging: the off-road EV segment. Lucid Motors, a company once criticized for its overambitious luxury sedan, is now pivoting to this high-growth niche with the Gravity X, a rugged, high-performance electric SUV designed to redefine adventure. With the global off-road EV market projected to grow at a 14.7% CAGR through 2034, Lucid’s strategic move into this segment could be the key to unlocking profitability and long-term relevance.
The Gravity X: A Rugged Revolution in Luxury
The Lucid Gravity X is more than a concept—it’s a calculated response to the growing demand for vehicles that combine luxury with off-road capability. Unveiled at the 2025 Pebble Beach Concours d’Élégance, the Gravity X boasts an EPA-estimated 450-mile range, 828 horsepower, and 350-kW fast charging, making it one of the most capable electric SUVs on the market. Its redesigned chassis includes protective skid plates, 21/22” all-terrain tires, and tow hooks, while the interior retains Lucid’s signature luxury with premium leather, microsuede, and water-resistant upholstery.
What sets the Gravity X apart is its strategic positioning. It targets eco-conscious adventurers and luxury EV enthusiasts, a demographic willing to pay a premium for vehicles that don’t compromise on performance or sustainability. By etching topographical references to Big Sur and Death Valley on the hood and embedding geographic coordinates of Pebble Beach into the sill plates, Lucid has created a product that resonates with the spirit of exploration.
Market Dynamics: A $772M Opportunity by 2034
The off-road EV segment is being driven by three forces: environmental awareness, technological innovation, and infrastructure development. According to market research, the global off-road EV market is expected to grow from $190.5 million in 2024 to $772.4 million by 2034, a nearly fourfold increase. The U.S. alone accounts for 80% of 2024 revenue, fueled by advancements in battery technology and a surge in eco-tourism.
Lucid’s entry into this segment is timely. The Gravity X competes directly with the Rivian R1S and the upcoming Tesla Cybertruck, but its 450-mile range and luxury-centric design give it a unique edge. While Rivian and Tesla focus on rugged utility, Lucid is betting on refined ruggedness—a blend of adventure-ready engineering and high-end aesthetics.
Lucid’s Strategic Moves: Partnerships, Production, and Profitability
Lucid’s path to profitability hinges on three pillars: production scalability, strategic partnerships, and cost efficiency.
-
Production Ramp-Up:
Lucid has faced production bottlenecks, delivering only 3,309 Gravity units in Q2 2025. However, the company has secured alternative supplies for rare earth magnets and expects to ramp up to 18,000–20,000 units in 2025. A midsize SUV priced around $50,000, set to launch in 2026, will further expand Lucid’s addressable market. -
Partnerships for Growth:
Lucid’s partnership with Uber and Nuro to deploy 20,000 Gravity robotaxis over six years is a game-changer. This collaboration not only diversifies revenue streams but also positions Lucid in the autonomous ride-sharing market, a sector projected to grow exponentially. Additionally, a multiyear deal with actor Timothée Chalamet aims to elevate the brand’s cultural relevance. -
Cost Efficiency and Vertical Integration:
Lucid’s proprietary Atlas Drive Unit and ultra-compact powertrain technology reduce battery costs while maintaining performance. The company’s Arizona factory, which delivered more cars in 2024 than all of 2023, is a testament to its vertical integration strategy. By controlling key components, Lucid aims to lower production costs and improve margins.
Risks and Realities
Despite its strengths, Lucid faces challenges. The Gravity X is still a concept, and transitioning it to production requires significant capital. The elimination of the $7,500 federal EV tax credit could also impact sales. Moreover, competitors like Tesla and Rivian are rapidly innovating, and the off-road EV market remains unproven in terms of consumer adoption.
However, Lucid’s $4.86 billion liquidity and 60% ownership by the Saudi Sovereign Wealth Fund provide a financial safety net. The company’s focus on cash flow positivity and disciplined cost management suggests a long-term strategy to weather short-term volatility.
Investment Thesis: A High-Risk, High-Reward Play
For investors, Lucid’s Gravity X represents a high-risk, high-reward opportunity. The off-road EV segment is nascent but growing rapidly, and Lucid’s blend of luxury, performance, and strategic partnerships positions it to capture a significant share. However, success depends on executing production targets, scaling the robotaxi initiative, and differentiating the Gravity X in a competitive market.
Key metrics to watch:
– Production ramp-up to 20,000 units in 2025.
– Robotaxi deployment with Uber/Nuro.
– Midsize SUV launch in 2026.
– Gross margin improvement as production scales.
Final Verdict
Lucid’s Gravity X is a bold bet on the future of adventure-driven EVs. While the company’s financials remain unprofitable, its strategic positioning in a high-growth segment, coupled with innovative partnerships and cost-efficient technology, offers a compelling long-term story. For investors with a 3–5 year horizon and a tolerance for volatility, Lucid could be a transformative play—if it executes.
Investment Advice: Consider a small, speculative position in Lucid, hedged against broader EV market risks. Monitor production milestones and robotaxi progress closely. If the Gravity X transitions to production and the midsize SUV gains traction, Lucid could become a cornerstone of the premium off-road EV market.
