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Investing.com - Baird has lowered its price target on Lucid Group Inc . (NASDAQ:LCID) to $2.00 from $3.00 while maintaining a Neutral rating following the company’s second-quarter results. The stock, currently trading at $2.42, has seen a -21.7% return over the past year, with InvestingPro data showing significant price volatility.
The electric vehicle maker reported Q2 results that aligned with revenue estimates but fell short of Baird’s and consensus expectations for EBITDA and EPS. While revenue growth reached 40.7% in the last twelve months, the company faces challenges with a concerning -105.7% gross profit margin and significant cash burn rate.
Lucid identified permanent magnets as a supply constraint during Q2, which nearly caused a production pause. The company has since secured sufficient supply to meet its full-year production targets.
Baird views Lucid’s recent announcements regarding increased brand awareness efforts and entry into the robotaxi market as positive developments for the company.
The research firm believes the true catalysts for Lucid will be cost reductions to improve vehicle profitability and a potential technology licensing deal.
In other recent news, Lucid Group reported its Q2 2025 earnings, which did not meet analysts’ expectations. The company announced an earnings per share of -0.24, which fell short of the anticipated -0.22. Additionally, Lucid Group’s revenue for the quarter was $259.4 million, missing the forecasted $283.19 million by 8.4%. Meanwhile, Needham has reiterated its Hold rating on Lucid Group, citing near-term execution challenges that may hinder the company’s growth potential. Despite these challenges, Needham noted positive demand trends for Lucid’s Gravity model. The firm also acknowledged Lucid’s recent partnership with Uber (NYSE:UBER) and Nuro, which highlights the strength and scalability of its technology platform. These developments are part of the ongoing updates regarding Lucid Group’s business activities.
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