Benchmark maintains Buy rating on Lucid stock with $5 target

On Friday, Benchmark analysts maintained their Buy rating and $5.00 price target for Lucid Group Inc . (NASDAQ:LCID), following the company’s first-quarter vehicle deliveries report. Lucid reported delivering 3,109 vehicles, which aligned with the market consensus of approximately 3,000 vehicles but fell slightly short of Benchmark’s expectation of 3,212 vehicles. According to InvestingPro data, the company has achieved revenue growth of 35.7% over the last twelve months, though it maintains a challenging gross profit margin of -114%.

Lucid’s guidance for first-quarter revenues ranged from $232,000 to $236,000, closely matching Benchmark’s projection of $233,000 but coming in under the consensus estimate of $246,000, according to data from FactSet. Management highlighted that half of the orders in the past two months were from individuals who previously owned Tesla (NASDAQ:TSLA) vehicles, indicating a shift in consumer preference that may benefit Lucid. InvestingPro analysis shows the company maintains a strong current ratio of 4.18, with more cash than debt on its balance sheet, though it’s currently trading slightly above its Fair Value.

The company’s management sees the recent dip in Tesla’s sales in certain markets as an opportunity for Lucid to capture more market share and enhance brand recognition. The analysts at Benchmark believe that Lucid’s domestic manufacturing operations will likely lessen the impact of newly announced tariffs compared to traditional automotive manufacturers. For deeper insights into Lucid’s competitive position and financial health, InvestingPro subscribers can access 12 additional key ProTips and a comprehensive Pro Research Report, part of the platform’s coverage of over 1,400 US stocks.

Looking ahead to the rest of 2025, Benchmark views the introduction and sales growth of Lucid’s Gravity SUV as a promising opportunity for the company to expand its market share. The firm also suggests that Lucid could see additional gains from potential licensing or partnership agreements. The analysts have reiterated their Buy rating and $5.00 price target on Lucid stock, expressing confidence in the company’s prospects for the year, despite the stock’s 30.5% decline over the past six months and current market capitalization of $7 billion.

In other recent news, Lucid Group announced its preliminary first-quarter results, revealing the delivery of 3,109 vehicles, which slightly exceeded analyst projections. However, the company produced only 2,212 vehicles, falling short of Cantor Fitzgerald’s estimate of 3,600. Despite this production shortfall, Cantor Fitzgerald maintained its Overweight rating on Lucid with a price target of $3.00. Additionally, Lucid plans a $1 billion convertible note offering, aiming to use the proceeds for strategic financial maneuvers, including repurchasing existing notes and engaging in capped call transactions.

Furthermore, Lucid is facing challenges with its Gravity SUV, as unconfirmed reports suggest delays due to safety issues, particularly with the third-row seating. These delays have raised concerns about Lucid’s production timeline, with higher-volume production not expected until June or July. Meanwhile, Benchmark has noted that Lucid, along with Tesla and Rivian (NASDAQ:RIVN), may face limited impact from newly imposed tariffs due to their U.S.-based manufacturing operations. This insight comes amid a backdrop of increasing U.S. EV sales, which saw a 28% rise in early 2025 according to Rho Motion data.

Lucid’s strategy to expand globally includes sending over 600 vehicles to Saudi Arabia for final assembly, reflecting its commitment to international market growth. As the company navigates these operational and strategic developments, investors remain keenly focused on its ability to meet production targets and manage supply chain challenges.

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