Lucid Group (LCID) stock has been under pressure this year, with shares down 34% year-to-date. The stock has also fallen about 9% since reporting its Q2 2025 results on August 5. In a new note, Stifel analyst Stephen Gengaro lowered his price target on the EV maker to $2.10 from $3.00, while keeping a Hold rating. The revised target translates to $21.00 post-split, with Lucid’s 1-for-10 reverse stock split set to take effect in trading on September 2.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Lucid’s 1-for-10 reverse split became effective on August 29 and will take effect in trading on September 2. The move is meant to keep the company in compliance with Nasdaq’s minimum bid price rule. While it lifts the per-share price on paper, it does not change Lucid’s overall market value.”
Why Gengaro Stays Cautious on Lucid
The 4-star analyst Gengaro noted that Lucid’s Q2 revenue came in slightly above expectations, but both gross profit and adjusted EBITDA fell short, reflecting the company’s challenges related to cost efficiency.
At the same time, Lucid cut its 2025 production outlook to 18,000–20,000 vehicles, compared to the earlier target of 20,000. According to the analyst, this change reflects market volatility and industry headwinds that continue to weigh on the EV space.
Despite these near-term pressures, Gengaro stressed his belief in Lucid’s technology and products, describing the Air sedan and the Gravity SUV as “excellent products.” Even so, he warned that Lucid will likely need additional capital over the next few years to fund its operations and growth.
Key Catalysts Ahead
Looking ahead, Gengaro said he is waiting for more clarity on Gravity SUV sales as well as the launch of Lucid’s midsize vehicle before becoming more positive on the stock. For now, he prefers to remain on the sidelines.
Is LCID Stock a Buy?
The stock of Lucid Group has a consensus Hold rating among eleven Wall Street analysts. That rating is currently based on two Buy, eight Hold, and one Sell recommendations issued in the past three months. The average LCID price target of $3.14 implies 58.59% upside from current levels.
