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Investing.com - BofA Securities maintained its Underperform rating and $1.00 price target on Lucid Group Inc . (NASDAQ:LCID) following the company’s second-quarter 2025 earnings release. According to InvestingPro data, the electric vehicle maker maintains a strong balance sheet with more cash than debt, though it’s currently burning through cash rapidly.
Lucid reported adjusted earnings per share of ($0.28), missing both BofA’s estimate of ($0.18) and Bloomberg consensus of ($0.22). Revenue came in at $259 million, below BofA’s projection of $267 million and consensus expectations of $262 million. Despite these misses, the company has maintained year-over-year revenue growth of 39%, though InvestingPro analysis indicates persistent profitability challenges.
The electric vehicle maker delivered 3,309 vehicles during the quarter, slightly below initial expectations. Adjusted EBITDA was ($632 million), worse than BofA’s forecast of ($617 million) and consensus of ($605 million), primarily due to negative gross margins of 105.0% compared to BofA’s estimate of 85.0%. The company’s trailing twelve-month gross margin stands at -99.26%, reflecting significant operational challenges.
Management attributed a 21 percentage point impact to gross margin (approximately $55 million) from tariffs, which exceeded the previously guided range of 8%-15%. Lucid’s cash position declined to $2.8 billion at quarter-end, down from $3.6 billion at the end of the first quarter.
BofA reduced its valuation multiple to 1.5x EV/Sales from 2x, citing incremental challenges including tariffs, IRA incentives, and regulatory credits that will likely negatively impact sales and production ramps for both the Gravity and the mid-size vehicle planned for late 2026. Based on InvestingPro’s comprehensive Fair Value analysis, which considers multiple valuation metrics and growth factors, Lucid appears to be trading near its Fair Value. Discover more detailed insights and 8 additional ProTips about Lucid in the exclusive Pro Research Report.
In other recent news, Lucid Group Inc. reported second-quarter 2025 revenue of $259 million, slightly below the consensus estimate of $260 million and Benchmark’s projection of $300 million. The company 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, including one-time inventory write-downs. Stifel noted that Lucid’s revenue of $259.4 million exceeded its own estimate of $254 million by 2.1%, mainly due to higher average selling prices. Analysts from Baird lowered their price target for Lucid from $3.00 to $2.00, maintaining a Neutral rating, citing that the Q2 results aligned with revenue estimates but did not meet expectations for EBITDA and EPS. Cantor Fitzgerald reiterated a Neutral rating and highlighted Lucid’s technical advantages, including higher battery efficiency and longer range. Demand for Lucid’s Gravity model is reportedly strong, with daily orders nearly doubling since its display. Additionally, Needham maintained a Hold rating, acknowledging execution challenges but noting positive demand trends and a partnership with Uber (NYSE:UBER) and Nuro.
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