Stifel maintains Hold rating on Lucid stock amid Q2 challenges

Published 06/08/2025, 15:20
Stifel maintains Hold rating on Lucid stock amid Q2 challenges

Investing.com - Stifel has reiterated its Hold rating and $3.00 price target on Lucid Group Inc . (NASDAQ:LCID) following the electric vehicle maker’s second-quarter 2025 financial results. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 3.32, though it faces profitability challenges with a concerning gross margin of -105.68%.

Lucid reported revenue of $259.4 million for Q2 2025, exceeding Stifel’s estimate of $254.0 million by 2.1%, primarily due to higher average selling prices. The revenue figure aligned with broader market consensus expectations.

The company posted a gross loss of $272.4 million and adjusted EBITDA loss of $632.1 million, both missing Stifel’s forecasts of $246.4 million and $579.1 million losses, respectively. The underperformance was partly attributed to approximately $54 million in tariff-related expenses.

Cash burn accelerated to $1,012.9 million in the second quarter, significantly higher than the $589.9 million reported in the first quarter of 2025.

Lucid has reduced its 2025 production guidance to 18,000-20,000 vehicles from its previous target of 20,000 units, citing ongoing market volatility and industry headwinds. The company also lowered its 2025 capital expenditure forecast to $1.1-1.2 billion from $1.4 billion, while noting tariff impact on 2025 margins will likely be at the lower end of its previously guided 8-15% range. Despite these challenges, the company maintains a strong balance sheet with more cash than debt, though InvestingPro data indicates rapid cash burn remains a key concern.

In other recent news, Lucid Group reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of -0.24, which did not meet the forecasted -0.22. The company’s revenue reached $259.4 million, falling short of expectations by 8.4%, as analysts had projected $283.19 million. Baird responded to these results by lowering its price target for Lucid Group from $3.00 to $2.00, while maintaining a Neutral rating. Cantor Fitzgerald also reiterated its Neutral rating with a $3.00 price target, acknowledging both the company’s strengths and challenges.

The research firm noted Lucid’s technical advantages, including higher battery efficiency and longer range, while observing that orders for the Gravity model have nearly doubled. Meanwhile, Needham maintained its Hold rating on Lucid, citing near-term execution challenges that could offset long-term growth potential. The firm also highlighted Lucid’s partnership with Uber (NYSE:UBER) and Nuro as a positive development, showcasing the scalability of its technology platform. These recent developments indicate mixed reactions from analysts regarding Lucid Group’s performance and future prospects.

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