Lucid Motors, an electric vehicle (EV) specialist known for its luxury sedans, is facing a challenging road ahead as its stock price plummets by approximately 95% from its post-merger peak. While the company showcases impressive performance and accolades surpassing Tesla in some areas, its shaky financials and struggles to meet production targets raise concerns about its long-term viability.

Lucid made its market debut in July 2021 through a merger with a special purpose acquisition company. Initially, the company's share price soared due to promising production and strong demand for its upscale EVs, which boasted a travel range of 520 miles per charge, outperforming Tesla's Model S Long Range by 115 miles.

Despite positive reviews and industry recognition, including top honors in the luxury category from sources like Car and Driver and MotorTrend, Lucid's share price has since tumbled, resulting in a market capitalization of around $6.9 billion. To turn a $15,000 investment into $1 million, the stock would need to climb approximately 67 times above its current levels, reaching a market capitalization of approximately $462 billion.

To drive profitability, Lucid must significantly expand its vehicle production and delivery volume. Unfortunately, the company has fallen short of its growth expectations, with recent figures showing production of only 8,428 vehicles, a meager 17.4% increase compared to the previous year. While deliveries exhibited a more impressive 37.4% growth, signs of weakening demand present a cause for concern.

Furthermore, Lucid's financials depict a challenging picture. The company reported an operating loss of $2.36 billion on revenue of approximately $438.1 million across the first three quarters of 2023. With the need for capital injections, Lucid has sold shares to Saudi Arabia's Public Investment Fund, leading to potential stock dilution and the erosion of ownership value.

Investors considering Lucid as a potential "millionaire-maker" should approach the stock with caution. Despite the possibility of significant gains if production and profitability show improvement, the company's volatile stock price and uncertain financial foundation present risks. Massive sell-offs could further depress the stock's value, making a path to generating substantial returns challenging.

In conclusion, while Lucid Motors offers impressive EVs with superior performance in certain areas compared to Tesla, its stock's steep decline and ongoing challenges signal a risky investment. Without substantial growth, achieving profitability will remain uncertain, and stock dilution may leave investors with a smaller piece of the ownership pie. Potential investors should carefully evaluate the company's financial health and market dynamics before considering an investment in Lucid.

Disclaimer: This article presents opinions and analysis that may differ from The Motley Fool's Premium Investing Services. The author has no position in any of the stocks mentioned, and The Motley Fool has positions in and recommends Tesla.