Shares in U.S. electric vehicle maker Lucid (LCID), which is yet to turn an annual profit, tumbled over 7% on Wednesday afternoon. This came after Baird and TD Cowen cut their price targets on LCID, keeping their Hold ratings.
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On Tuesday, Lucid disclosed that it has tapped industrial tech veteran Silvio Napoli, who most recently served as chair and chief executive at Swiss industrial machinery giant Schindler (SHLAF), to steer its affairs going forward.
The automaker also revealed raising $1.05 billion in fresh capital from various channels, including an additional $200 million investment from ride-hailing giant Uber (UBER). This also includes a $500 million commitment in convertible preferred stock from Ayar Third Investments, a wholly owned subsidiary of Saudi Arabia’s sovereign wealth fund, the Public Investment Fund.
Analysts Remain on the Sidelines on Lucid
Baird analyst Ben Kallo said he considered this development in updating his model on Lucid but nonetheless trimmed his price target from $14 to $12. However, this represents a 36% upside from LCID’s closing price of $8.80 on Tuesday.
Similarly, TD Cowen’s Itay Michaeli dropped his price target from $19 to $10, predicting about 23% upside. Michaeli said his downward review is part of his adjustments to companies in the auto sector ahead of their first-quarter results.
The analyst lowered his LCID price target despite noting that automakers are in a better position than parts suppliers to reassure investors that their future projections are still reliable. Michaeli noted that he sees the risk of companies in the sector lowering their guidance as very low.
Lucid, which has missed Wall Street earnings per share estimates over the last four quarters, is set to release its first-quarter fiscal 2026 results on May 5.
Is Lucid a Buy or Sell Stock?
Across Wall Street, Lucid’s shares continue to carry a Hold consensus rating from analysts. This is based on one Buy, seven Holds, and two Sells issued over the past three months.
However, the average LCID price target of $13.13 suggests more than 61% upside from current trading levels.
