Lucid Group's Stock Faces Uncertainty Amid Analyst Upgrade

Lucid Group sees declining stock prices, but an analyst upgrade offers hope. The stock is 'well-positioned' for growth in the luxury EV market following a challenging period.

Date: 16-02-2025

AI Rating: 6

Stock Performance: Lucid Group (NASDAQ: LCID) has experienced a significant decline, dropping nearly 30% in 2024, and continues to fall in 2025. This persistent decline may create a bearish sentiment among investors.

Analyst Rating: Benchmark analyst Mickey Legg has initiated coverage with a 'buy' rating and a price target of $5, suggesting potential upside of approximately 80%. This positive endorsement could instill some confidence in the stock.

Market Position: The report mentions that Lucid is focused on the luxury EV market and has introduced the Gravity SUV to its lineup, although it has faced challenges due to an overall slowdown in EV sales growth. The upgrade indicates that while the company has struggled, it is expected to leverage its advanced technology, access to capital, and partnerships to capture market share.

Sales and Production: Lucid's delivery of around 10,000 EVs in 2024 signifies the need for improvement. The company's upcoming report on February 25 is crucial, as it may provide insights into early interest in the Gravity SUV and its potential to boost delivery volumes in 2025.

Investor Caution: Despite the positive rating, there is a recommendation for investors to wait for management's guidance before making investment decisions. This signals uncertainty in how the management will steer the company forward.

Stocks: LCID