Good news for Lucid investors. Buy this stock now?

Electric Vehicles (EVs) have been tossed around faster than you can turn a pillow into a cold noodle. The industry has gone from potentially overhyped and full of optimism that EVs were about to go mainstream, to stagnant sales growth, struggling charging infrastructure, and a lack of affordable options to drive demand.

As much as possible, there was doom and gloom all around her.Lucid Group (NASDAQ: LCID)investors still got some good news when the young electric-car startup released its first-quarter delivery numbers. Let's take a closer look at that news and whether it makes the stock a buy now.

Looking at the data

For EV investors, there hasn't been much good news to digest lately. However, Lucid reports that deliveries in the first quarter of 2024 jumped 40% compared to the same period a year ago, and Lucid even cleared out some inventory, delivering 1,967 Air sedans in the first quarter, compared to 1,728 in production.

First quarter deliveries also increased sequentially by 131 TP3T compared to 1,734 in the fourth quarter of 2023.According to Bloomberg, Lucid's first-quarter industry deliveries were well above the 1,800 deliveries estimated by Wall Street.

Lucid's surge in deliveries is partly due to its February price cuts.In mid-February, Lucid slashed the price of its Air Pure model by $7,500, which puts its starting price at about $70,000.Lucid also slashed the price of the Air sedan's higher trim levels, and even offered a lease deal in April to entice consumers.

In addition, Lucid is offering a $5,000 discount on certain inventory vehicles and a $1,000 discount on charging equipment. As the High-B耑 EV market has saturated, the company is determined to counteract weak demand with more competitive pricing.

Buy Lucid now?

Lucid's 40% year-over-year jump in deliveries is good news for investors, but it's not the only reason to buy shares of the young electric-car maker. However, delivering more vehicles and generating more revenue could give investors confidence that the company can differentiate itself from the competition in the next quarter.

Things could get even more interesting for investors as Lucid plans to launch its Gravity crossover this year, potentially opening the door to a broader new consumer base. And that's a very important point. The company's plans to launch a new "mid-size" platform that will offer models that can compete with the Tesla Model Y and Model 3 - the best-selling electric vehicles on the U.S. market - will be another part of the competition.

Lucid's first-quarter delivery surge doesn't mean it's time to take a position in the stock, as this will be a challenging year for the cash-strapped young EV maker. But if Lucid can continue to be competitive on pricing, increase sales as the overall EV industry slows, and perfect the launch of its Gravity crossover, it could be a better-than-expected year for Lucid investors.

Should you invest $1,000 in Lucid now?

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Daniel Miller does not own any of the shares listed above.The Motley Fool does not own any of the shares listed above.The Motley Fool has a disclosure policy.

Good News for Lucid Investors. Is the Stock Worth Buying Now? This post was originally published by The Motley Fool.