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On Monday, Cantor Fitzgerald reaffirmed a Neutral rating for Lucid Group Inc . (NASDAQ:LCID) shares. The research firm’s analysis acknowledges Lucid’s strong partnership with the Public Investment Fund (PIF) and its advanced technology. Lucid’s electric vehicles (EVs) are recognized for superior battery efficiency, extended range, enhanced performance, and quicker charging capabilities compared to competitors. According to InvestingPro data, the company maintains a "Weak" overall financial health score, though it holds more cash than debt on its balance sheet.
Lucid has maintained its production forecast for fiscal year 2025, aiming to produce approximately 20,000 vehicles. This projection aligns with Cantor Fitzgerald’s expectations. The company began manufacturing its Air Gravity SUV in the fourth quarter of 2024, with initial deliveries commencing in the first half of 2025. Furthermore, Lucid plans to launch the Gravity Touring model, starting at $79,900, in the second half of 2025. Analysts believe that the Gravity model will likely increase customer demand due to its performance features and competitive pricing. InvestingPro data shows revenue growth of over 40% in the last twelve months, with analysts anticipating continued sales growth this year.
The anticipated introduction of a midsize platform is seen as a significant opportunity for Lucid to expand and enhance consumer interest. However, the firm’s neutral stance persists due to several concerns. These include Lucid’s continued high negative gross margin (currently at -105.68% according to InvestingPro), the potential need for additional capital, a newly formed management team that has yet to prove itself, deteriorating macroeconomic conditions, and the uncertainty surrounding tariffs. While the company maintains a healthy current ratio of 3.32, indicating strong short-term liquidity, investors should note that comprehensive analysis and additional insights are available in the Pro Research Report, covering this and 1,400+ other top US stocks.
In other recent news, Lucid Group Inc. reported its first-quarter financial results for 2025, showing an adjusted EBITDA loss of $263.5 million, which was in line with analyst projections. Despite flat revenues, the company managed to reduce its cash burn to $589.5 million, down from $824.8 million in the previous quarter, thanks to increased regulatory credit sales. Analysts from Cantor Fitzgerald and Stifel have maintained their Neutral and Hold ratings, respectively, with a consistent price target of $3.00, citing concerns over Lucid’s high negative gross margins and capital-intensive growth strategies. Meanwhile, Lucid has opened a new Studio and Service Center in Rutherford, New Jersey, expanding its presence in North America as part of its strategy to meet rising demand for electric vehicles.
Cantor Fitzgerald highlighted a reduction in Lucid’s FY25 vehicle delivery estimates to 17,000 units and revised revenue projections to $1,432.2 million, down from initial estimates. The firm also adjusted its FY26 vehicle delivery forecast to 34,160 units, resulting in a lowered revenue expectation of $2,963.5 million. Stifel noted that Lucid’s management anticipates an increase in operating expenses throughout the year due to higher marketing expenditures, while maintaining a production target of 20,000 units for 2025. Needham analysts reiterated a Hold rating, pointing out liquidity concerns and the company’s relatively protected tariff position. Lucid’s new Gravity SUV is expected to be a significant contributor to growth, with initial deliveries commencing in the first half of 2025.
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