Morgan Stanley again adjusts its Fed forecast, now sees 4 cuts in 2026
On Monday, Cantor Fitzgerald maintained its Neutral rating and $3.00 price target for Lucid Group Inc . (NASDAQ:LCID), following remarks made by the company’s Head of Investor Relations, Maynard Um, at a recent conference. Currently trading at $2.32, InvestingPro analysis suggests the stock is fairly valued based on its proprietary Fair Value model. Lucid, an electric vehicle manufacturer, has set its vehicle production guidance for FY25 at 20,000 units, aligning with Cantor Fitzgerald’s preliminary estimates and surpassing the consensus.
The company achieved a production of 9,029 vehicles and delivered 10,241 vehicles in FY24, contributing to a significant 35.71% revenue growth over the last twelve months. Despite these production numbers, Cantor Fitzgerald’s analyst pointed out that Lucid’s former CEO and CTO, Peter Rawlinson, had stepped down on February 25, transitioning to a new role as Strategic Technical Advisor and Chairman. Rawlinson’s absence from the earnings call was noted as unusual by the analyst, given his 12-year tenure as CEO.
Cantor Fitzgerald recognizes Lucid’s ability to deliver electric vehicles with superior battery efficiency, longer range, better performance, and faster charging times compared to competitors. However, the firm’s stance remains neutral. This decision is influenced by Lucid’s continued high negative gross margin of -114.27%, the need for additional capital, the introduction of a new management team, and deteriorating macroeconomic conditions. InvestingPro data reveals 12 additional key insights about Lucid’s financial health and market position, available exclusively to subscribers through detailed Pro Research Reports.
The analyst’s comments reflect a cautious outlook on Lucid’s financial health and leadership transitions, despite acknowledging the company’s technological advancements in the electric vehicle sector. Lucid’s stock price target and rating remain unchanged as the company navigates through these challenges.
In other recent news, Lucid Group Inc. reported production of 9,029 vehicles and deliveries of 10,241 in fiscal year 2024. The company has set an ambitious production target of 20,000 vehicles for fiscal year 2025, aligning with Cantor Fitzgerald’s projections. Despite this, CFRA has adjusted its rating to Sell, maintaining a $1 target, citing Lucid’s significant financial challenges, including a gross loss of over $90,000 per vehicle and a negative free cash flow of $2.9 billion. Stifel has also revised its price target for Lucid to $3.00 from $3.50, maintaining a Hold rating as they await further margin improvements.
Cantor Fitzgerald reiterated a Neutral rating with a $3.00 target, noting Lucid’s technological strengths but expressing concerns over high negative gross margins and the need for additional capital. Benchmark, however, maintained a Buy rating and a $5.00 target, optimistic about Lucid’s growth prospects under its new leadership and strategic plans. The firm highlighted Lucid’s focus on scaling sales and manufacturing capabilities, as well as potential technology licensing agreements with OEMs.
Lucid’s leadership changes, including the transition of Peter Rawlinson to a Strategic Technical Advisor role, have also been a focal point. The company anticipates the launch of its Air Gravity SUV and a midsize vehicle platform by late 2026, which analysts believe could expand its market and improve cost efficiencies. These developments are being closely watched by investors as Lucid navigates its financial and operational challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.