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On Monday, Stifel analysts reiterated their Hold rating for Lucid Group Inc . (NASDAQ: NASDAQ:LCID) with a steady price target of $3.00. Stifel’s commentary highlighted Lucid’s strong first-quarter performance in 2025, attributing the success to effective cost optimization strategies. The firm underscored Lucid’s ability to meet its full-year production targets.
Lucid’s anticipated Lucid Gravity model is expected to enhance sales and increase brand visibility in the years 2025-2026 and beyond. Stifel’s analysts expressed optimism about the upcoming vehicle’s impact on the company’s market presence.
Despite these positive developments, Stifel decided to maintain its Hold rating due to Lucid’s significant cash burn and the potential requirement for additional capital in the near term. InvestingPro data confirms these concerns, revealing a negative gross profit margin of -105.68% and substantial negative free cash flow. The analysts also pointed out that gross margin improvements might be slowed down by tariffs, which is a concern for the firm’s financial health. InvestingPro subscribers have access to 10 additional key insights about Lucid’s financial health and valuation metrics.
Looking ahead, Stifel is closely monitoring Lucid’s progress on its mid-sized vehicle platform, which is on schedule for release in the second half of 2026. The analysts believe that advancements in this area could be a pivotal moment for Lucid as it moves towards profitability.
In their analysis, Stifel emphasized the importance of the next few quarters in determining Lucid’s trajectory, as the company endeavors to improve its financial standing and market position.
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 analysts’ expectations from Stifel. Despite flat revenues, the company managed to reduce its cash burn to $589.5 million, down from $824.8 million in the previous quarter, aided by increased regulatory credit sales. Lucid has maintained its production target of 20,000 vehicles for the year and continues to focus on its upcoming Gravity SUV and midsize platform, which analysts from Cantor Fitzgerald believe could drive future demand. The company opened a new Studio and Service Center in Rutherford, New Jersey, marking its 43rd location in North America, as part of its strategy to expand its footprint and meet growing demand.
Analysts from Cantor Fitzgerald and Stifel have maintained a neutral and hold rating on Lucid stock, respectively, with a price target of $3.00. They acknowledge the company’s strong partnership with the Public Investment Fund and its advanced technology but express concerns over high negative gross margins and potential capital needs. Needham analysts also reiterated a hold rating, pointing to liquidity concerns and the company’s ability to scale and improve margins. Despite these challenges, Lucid’s management is optimistic about its financial position, projecting sufficient liquidity to support operations into the second half of 2026. The anticipated launch of the midsize platform in late 2026 is reportedly on schedule, aligning with the company’s growth plans.
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