Lucid Group, Inc. (LCID) is making a critical pivot from ultra-luxury sedans to something closer to reality: a midsize crossover priced under $50,000 that takes direct aim at Tesla, Inc. (TSLA) and its wildly popular Model Y.

The timing couldn't be more urgent. While Lucid tries to figure out this mass-market thing, its new Gravity SUV is experiencing what you might politely call a challenging launch.

Taking Aim at Tesla's Cash Cow

The upcoming vehicle, internally called "Project Midsize" and potentially branded as the Lucid Earth, represents something close to a survival strategy for the California automaker. Right now, Lucid sells the Air sedan and the Gravity SUV, both decidedly in the luxury category. The midsize crossover is their attempt to actually sell cars in volume.

During the company's Q2 earnings call, Lucid confirmed the crossover should hit production in late 2026. The pitch? Industry-leading efficiency that lets them deliver over 300 miles of range with a smaller, cheaper battery than competitors need. That's the kind of edge that could matter in a crowded field, assuming they can actually execute.

The Gravity Problem

Here's where things get uncomfortable. Despite earning solid reviews for its 440-mile range and roomy interior, the Gravity SUV has posted some genuinely rough early numbers:

Minimal Sales: Reports showed just nine registrations in the first half of 2025. Lucid pushed back, claiming "multiple hundreds" were in the delivery pipeline, but that's not exactly reassuring.

Production Troubles: Supply chain issues and tariff pressures forced the company to slash its 2025 production guidance to between 18,000 and 20,000 units.

"I feel that it is important to acknowledge that we are not where we want to be with Lucid Gravity production relative to our target at this point in the year," interim CEO Marc Winterhoff said on the Q2 call. That's corporate-speak for "things aren't going well."

Stock Collapse: Lucid shares have plummeted more than 60% in 2025, putting enormous pressure on management to demonstrate they can actually move volume.

Survive Now, Thrive Later

The $50,000 crossover offers a potential path toward mainstream relevance, but there's a pretty significant catch: Lucid needs to survive the next two years first.

With the Gravity still struggling to gain traction and the company continuing to burn through cash, the affordable midsize platform isn't just a nice-to-have. It's existential. In an EV market that's getting more competitive by the quarter, Lucid needs this launch to work.

LCID Price Action: Lucid Group shares were up 0.17% at $11.65 at the time of publication Wednesday.