Benchmark maintains Lucid stock Buy rating despite Q2 revenue miss

Investing.com - Lucid Group Inc . (NASDAQ:LCID), currently valued at $6.8 billion, reported second-quarter 2025 revenue of $259 million, slightly below the consensus estimate of $260 million and falling short of Benchmark’s projection of $300 million. Despite missing estimates, the company maintains strong year-over-year revenue growth of 39%.

The luxury electric vehicle manufacturer delivered 3,309 vehicles during the quarter, fewer than Benchmark’s estimate of 3,694 units. Gross margin remained negative at -105%, primarily due to approximately $55 million in tariff impacts, which included one-time inventory write-downs.

Lucid’s management stated these tariff effects are now largely behind them and expects full-year tariff-related margin pressure to fall at the low end of their previous 8-15% guidance range. The company revised its 2025 vehicle production guidance downward to approximately 18,000-20,000 units from the previous target of 20,000.

Capital expenditure guidance for 2025 was also reduced to $1.1-$1.2 billion from the previous $1.4 billion. Benchmark analyst Mickey Legg maintained a Buy rating on Lucid with a $7.00 price target following the earnings report.

Benchmark noted that Lucid remains focused on scaling its Gravity SUV, driving cost efficiencies, and building brand awareness as part of its path toward profitability.

In other recent news, Lucid Group reported its second-quarter 2025 financial results, revealing revenue of $259.4 million. This figure exceeded Stifel’s estimate of $254.0 million by 2.1% but fell short of the broader market expectations of $283.19 million by 8.4%. The company also reported an earnings per share (EPS) of -0.24, missing the forecasted -0.22. Following these results, Baird lowered its price target for Lucid Group to $2.00 from $3.00 while maintaining a Neutral rating, citing the company’s underperformance in EBITDA and EPS expectations. Stifel, on the other hand, reiterated its Hold rating and $3.00 price target, noting the revenue alignment with market consensus. Cantor Fitzgerald maintained its Neutral rating, highlighting Lucid’s technical advantages and the increased demand for its Gravity model. Needham also reiterated a Hold rating, mentioning near-term execution challenges but acknowledging positive developments, such as a partnership with Uber (NYSE:UBER) and Nuro. These developments reflect the mixed outlook and ongoing challenges for Lucid Group in the electric vehicle market.

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