Lucid (LCID) stock gains after the electric vehicle (EV) maker reported an increase in deliveries. Ronald Jewsikow, Guggenheim Securities director of automotive equity research, joins Seana Smith and Brad Smith on Morning Brief to discuss what’s next for Lucid and EV demand.

“I think Lucid has some catalysts on the horizon in terms of the gravity launch, which does unlock some [Total Addressable Market] TAM, but we've seen that the high-end electric SUV market is not as big as I think investors would have expected a few years ago. We've seen Rivian (RIVN) sales kind of stall out here, as well as Tesla's (TSLA) Model S and X sales,” Jewsikow tells Yahoo Finance.

He says, “I think that until we get to the mass-market car, which for Lucid is 2026 and beyond, it's kind of there is a lack of catalyst to really drive growth and see that step function change, improvement in unit economics and profitability, which is tough for investors to underwrite.”

“We've seen the same pressure on Rivian, which we're berated on just that this view that until 2026, there's no real catalyst to change EV demand if you don't have a mass-market product,” Jewsikow adds.

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This post was written by Naomi Buchanan.