Fed’s Powell opens door to potential rate cuts at Jackson Hole
On Wednesday, Cantor Fitzgerald analysts maintained a Neutral rating on Lucid Group Inc . (NASDAQ:LCID) with a steady price target of $3.00. The firm’s analysts highlighted Lucid’s confirmation of its fiscal year 2025 (FY25) vehicle production guidance of 20,000 units, aligning with their estimates. Lucid Group had previously reported delivering 10,241 vehicles and producing 9,029 vehicles in fiscal year 2024 (FY24). According to InvestingPro data, the company achieved impressive revenue growth of 35.71% in the last twelve months, though its market capitalization stands at $6.87 billion.
The analysts noted that Lucid’s capital expenditure (capex) guidance for FY25 remains unchanged at approximately $1.4 billion. They acknowledged Lucid’s strong partnership with the Public Investment Fund (PIF) and its advanced technology, which they believe allows Lucid vehicles to offer higher battery efficiency, longer range, better performance, and faster charging compared to other electric vehicles (EVs). InvestingPro analysis reveals the company is quickly burning through cash, though it maintains strong liquidity with a current ratio of 4.18.
For FY25, Lucid has maintained its production guidance of around 20,000 vehicles. The company commenced production of its Air Gravity SUV in the fourth quarter of 2024 and began initial deliveries in the first half of 2025. Lucid is also aiming to launch the Gravity Touring, starting at $79,900, in the second half of 2025. Cantor Fitzgerald analysts are optimistic that the Gravity model will boost customer demand due to its performance and competitive pricing.
Additionally, the analysts are positive about the impact of the upcoming launch of Lucid’s midsize platform, which they believe will be a significant catalyst for the company. This new platform is expected to help Lucid scale its operations and improve customer demand.
Despite these positive factors, the analysts have chosen to maintain a neutral stance on Lucid stock. Their caution stems from concerns over the company’s continued high negative gross margin (-114.27% according to InvestingPro), potential need for additional capital, a new management team that has yet to prove itself, uncertain macroeconomic conditions, and the unpredictability of tariffs. While InvestingPro’s Fair Value analysis suggests the stock is slightly undervalued, investors should note that comprehensive analysis, including 8 additional ProTips and detailed financial metrics, is available through InvestingPro’s detailed research reports.
In other recent news, Lucid Group Inc. reported its first-quarter financial results for 2025, revealing an adjusted EBITDA loss of $263.5 million, which aligned with Stifel’s projections. The company managed to reduce its cash burn to $589.5 million, down from $824.8 million in the previous quarter, despite flat revenues. Lucid’s revenue for the quarter was $235 million, falling short of both BofA Securities’ forecast of $245 million and the consensus estimate of $249 million. The company delivered 3,109 vehicles, marking a 58% year-over-year increase, yet this figure did not meet initial expectations.
Analysts at Stifel maintained a Hold rating with a $3.00 price target for Lucid, while Cantor Fitzgerald also held a Neutral stance with the same price target, citing revised delivery estimates. Cantor reduced its vehicle delivery forecast for fiscal year 2025 to 17,000 units, impacting projected revenues. BofA Securities reiterated an Underperform rating with a $1.00 price target, noting Lucid’s adjusted EPS loss of $0.20 was better than expected but revenue fell short of forecasts.
Lucid’s Gravity SUV is anticipated to significantly contribute to the company’s unit growth this year, according to Needham, who maintained a Hold rating. The company plans to produce 20,000 vehicles in 2025 and is preparing to launch a mid-sized platform by late 2026. Lucid’s management has expressed confidence in its liquidity, projecting it will support operations into the second half of 2026.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.