12 Small Cap EV Stocks to Buy Now

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7. Lucid Group, Inc. (NASDAQ:LCID)

Market Capitalization: $6.86 Billion

Number of Hedge Fund Holders: 24

Lucid Group, Inc. (NASDAQ:LCID) is an American automotive and technology company that manufactures luxury electric vehicles. Currently, it offers the Lucid Air, its flagship model, and the new Lucid Gravity, for which the company opened orders in November 2024. Lucid Group, Inc. (NASDAQ:LCID) is one of the best EV stocks to invest in according to hedge funds.

On May 5, Needham analyst Chris Pierce reiterated a neutral “Hold” rating on Lucid Group, Inc. (NASDAQ:LCID). The analyst highlighted the promising start of the Gravity SUV, which gives the company an opportunity to attract new customers as production scales up. However, there are still concerns about Lucid Group, Inc.’s  (NASDAQ:LCID) financial health due to the capital-intensive nature of its growth plans and ongoing losses. The valuation of Lucid Group, Inc. (NASDAQ:LCID) is under pressure because investors are not sure if the company will be able to scale operations, improve its margins, and succeed with future models that will be aimed at increasing the company’s total addressable market. Pierce also noted that LCID’s stock is trading at about 12.5 times the firm’s estimated adjusted EBITDA for 2029, discounted back to present value.

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