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On Wednesday, Cantor Fitzgerald maintained its Neutral stance on Lucid Group Inc. (NASDAQ:LCID) shares, with a steady price target of $3.00, above the current trading price of $2.44. With a market capitalization of $7.4 billion, InvestingPro analysis indicates the company’s overall financial health score is weak at 1.62 out of 5. The firm’s analyst highlighted Lucid’s achievements in electric vehicle (EV) technology, noting the brand’s superior battery efficiency, range, performance, and charging capabilities compared to competitors. Lucid’s production forecast for fiscal year 2025 is set at around 20,000 vehicles, aligning with Cantor Fitzgerald’s projections and marking a significant year-over-year growth.
The production of Lucid’s Air Gravity, an SUV model, commenced in the fourth quarter of 2024, with the first deliveries expected in 2025. This new model, with a starting price of $94,900, is anticipated to attract more customers and bolster demand. The entry into the SUV market, with a price eventually falling below $80,000, is seen as a competitive move given the vehicle’s performance.
Cantor Fitzgerald also recognized the potential impact of Lucid’s upcoming midsize platform as a significant catalyst for the company’s growth. Despite these positive developments, the firm’s neutral position is influenced by concerns over Lucid’s continuous high negative gross margin (-132.4% in the last twelve months), the need for additional capital, a newly formed management team, and challenging macroeconomic conditions. InvestingPro analysis reveals 12 additional key insights about Lucid’s financial position, including its cash burn rate and valuation metrics, available in the comprehensive Pro Research Report. These factors contribute to the cautious outlook maintained by Cantor Fitzgerald on Lucid Group’s shares.
In other recent news, Lucid Group Inc. reported its fourth-quarter 2024 earnings, revealing a revenue of $234.5 million, which surpassed the forecasted $200.5 million. Despite a loss per share of $0.22, this was better than the anticipated loss of $0.25. The company also noted a significant improvement in its gross margin from the previous year. Lucid produced 3,386 vehicles, marking a 42% increase year-over-year, and delivered 3,099 vehicles, up 79% from the same quarter last year. Additionally, Lucid launched the Lucid Gravity SUV, expanding its product lineup, and plans to produce 20,000 vehicles in 2025, doubling its 2024 output.
Meanwhile, BofA Securities downgraded Lucid’s stock from Neutral to Underperform, reducing the price target from $3.00 to $1.00. This change reflects concerns over the company’s ability to deliver future products, which could impact its longer-term volume projections. The analyst noted potential delays or cancellations in upcoming projects, particularly the mid-size platform called the Space, anticipated for a 2026 launch. These uncertainties pose risks to Lucid’s ability to scale effectively and achieve positive gross profit. The downgrade indicates significant headwinds for Lucid in achieving its production and sales goals amid a competitive environment.
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