Lucid Group (LCID) came into the spotlight recently after its stock hit a 52-week low. The decline occurred after the EV maker began trading on a split-adjusted basis, following a 1-for-10 reverse stock split that took effect after Friday’s market close.
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On Tuesday, LCID stock dropped nearly 11%, bringing its year-to-date loss to 41.5%. The sharp decline has prompted investors to question whether the stock is now a buying opportunity. While some analysts point to potential upside tied to Lucid’s long-term growth plans, others remain cautious due to production hurdles and stiff competition in the EV market.
Investors Remain Cautious on Lucid Stock
Investors are staying cautious on Lucid, as its recent 1-for-10 reverse stock split did little to solve the company’s underlying problems. The move was primarily aimed at regaining compliance with Nasdaq’s minimum listing requirements.
Mainly, investors are concerned because production remains weak. The company only delivered 9,029 EVs in 2024 and issued a modest outlook of just 18,000–20,000 vehicles for 2025. Additionally, delays in new launches and ongoing supply chain and production problems show Lucid’s execution struggles, which could keep weighing on the stock.
Analysts’ Views on LCID Stock
On the bright side, Morgan Stanley’s four-star-rated analyst Adam Jonas raised his price target on LCID stock from $3 to $30 yesterday while keeping his Hold rating. The new target implies a solid upside of almost 70% from the current levels. Jonas previously highlighted that Lucid is moving beyond simply making EVs, aiming to tap into ‘AI-enabled autonomy’ through strategic partnerships.
Jonas’ new price target stands out against recent bearish revisions. For example, Stifel’s top-rated analyst Stephen Gengaro cut his target to $2.10 from $3.00 last month, pointing to production cuts and weak financial performance. Meanwhile, Bank of America’s Federico Merendi reiterated his Sell rating, predicting over 90% downside.
Is Lucid Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on LCID stock based on two Buys, nine Holds, and one Sell assigned in the past three months. Furthermore, the average Lucid’s stock price target of $5.49 per share implies a 69% downside risk.
