Lucid Group (LCID, Financial) shares climbed more than 4% on Tuesday, to $2.49, as investors reacted to upbeat Q1 delivery numbers and optimism that new U.S. tariffs might play in favor of domestic electric vehicle makers. While the stock remains down over 20% this year, the latest move signals growing interest in the EV underdog.

The shift comes after the Trump administration rolled out new 25% auto import tariffs. While the announcement rattled global automakers, Lucid may be insulated. The company builds its vehicles in Arizona and sources much of its components locally, giving it a potential cost advantage over rivals like BMW and Hyundai, which depend more on overseas manufacturing.

Benchmark analyst Mickey Legg maintained a Buy rating on Lucid and kept his $5 price target. He said Lucid's U.S.-based production puts it in a strong position to weather trade-related volatility in the near term.

Lucid also reported 3,109 vehicle deliveries for the first quarter — a 58% increase from a year ago. Production totaled 2,212 units, and the company said another 600 vehicles are currently being shipped to Saudi Arabia for final assembly. The update came in an investor note published April 2.

Still, not all analysts are bullish. Bank of America Securities' John Murphy lowered his target to $1 from $3, pointing to Lucid's ongoing cash burn and a recent $1 billion convertible note offering. The company said proceeds will go toward repaying 2026 debt and general expenses.

Lucid's recent performance may be encouraging, but the road ahead remains complex. The company still faces pressure to scale effectively while conserving capital. However, if the current tariff dynamics hold and the upcoming Gravity SUV launch goes smoothly, the outlook could shift further in Lucid's favor.

It's important to note that Lucid's stock climbed 0.62% in the past week and 13.26% for the month, outpacing the S&P 500's declines of -8.58% and -11.09%, respectively. However, its six-month drop of -28.80% is notably steeper than the index's -9.93%, and its YTD loss of -19.37% also surpasses the broader market's -12.78% decline.