TLDR
- Lucid Group (LCID) shares dropped 3.6% to $2.57 during Friday trading with 39.7 million shares traded
- Company missed Q1 earnings expectations by $0.01 per share, reporting a loss of $0.24 versus expected $0.23 loss
- Revenue of $235.05 million fell short of $250.50 million consensus estimate despite 36.1% year-over-year growth
- Analyst ratings remain mixed with average “Hold” rating and $2.68 consensus target price
- New trade tariffs may benefit Lucid’s Arizona-made vehicles over imported competitors like German luxury EVs
Lucid Group shares fell 3.6% on Friday, closing at $2.57 after trading as low as $2.52. The electric vehicle maker saw reduced trading volume with 39.7 million shares changing hands.
This represents a 43% decline from the typical daily volume of 69.8 million shares. The stock opened from a previous close of $2.66.
The recent price movement follows the company’s Q1 earnings report released on May 6th. Lucid reported a loss of $0.24 per share, missing analyst expectations by one cent.
Revenue came in at $235.05 million, falling short of the $250.50 million consensus estimate. Despite missing expectations, this still represented a 36.1% increase compared to the same quarter last year.
The company’s financial metrics show continued challenges. Lucid posted a negative net margin of 406.63% and a negative return on equity of 74.67%.
Operating losses reached approximately $692 million for the quarter. The company maintains $3.6 billion in cash and equivalents on its balance sheet.
Analyst Sentiment Remains Cautious
Wall Street analysts have delivered mixed signals on Lucid’s prospects. TD Cowen initiated coverage with a “hold” rating and $2.30 price target in March.
Redburn Atlantic downgraded the stock from “neutral” to “sell” in February, slashing their price target from $3.50 to $1.13. Bank of America also cut their rating from “neutral” to “underperform” with a $1.00 target price.
However, some analysts remain optimistic. Robert W. Baird raised their target from $2.00 to $3.00 while maintaining a “neutral” rating in April.
Benchmark kept their “buy” rating with a $5.00 price target. Currently, two analysts rate the stock as a sell, eight assign hold ratings, and two recommend buying.
The consensus target price sits at $2.68, just above current trading levels. This suggests limited upside potential in the near term based on analyst expectations.
Trade Policy Changes Create New Dynamics
Recent trade policy developments may work in Lucid’s favor. New 25% tariffs on imported vehicles took effect following policy announcements in April.
Lucid’s Arizona manufacturing facility positions the company well against imported competitors. The Casa Grande plant produces vehicles with 73% domestic content according to Kogard School of Business rankings.
This puts Lucid ahead of German-made rivals like the Porsche Taycan and BMW i7. However, it still trails Tesla’s Model S, which scores 80% on the domestic content index.
The new Taycan. Porsche presents its first fully-electric sports car ⚡️
Everything you need to know: https://t.co/EPn4VrYf9p#SoulElectrified #PorscheTaycan #Taycan pic.twitter.com/tQnkFWqjNn
— Porsche Retail Group (@PorscheRetail) September 4, 2019
The company’s secondary facility in Saudi Arabia could help navigate potential retaliatory trade measures. This geographic diversification provides operational flexibility as trade tensions evolve.
Tesla faces headwinds from consumer backlash related to CEO Elon Musk’s political involvement. Deliveries in Tesla’s higher-end segment dropped 24% to 12,881 units, creating potential market share opportunities for Lucid.
Institutional investors continue backing the company despite recent performance. Public Investment Fund increased its position by 28.8% in Q4, now holding 1.77 billion shares valued at $5.35 billion.
Vanguard Group owns 110.9 million shares worth $268.4 million after adding 615,108 shares in Q1. Institutional ownership stands at 75.17% of total shares outstanding.
The company trades with a market capitalization of $7.81 billion and maintains technical indicators showing a 50-day moving average of $2.48. Lucid’s upcoming Gravity SUV launch aims to expand market reach beyond the luxury sedan segment.
No one will ever regret buying @LucidMotors Electric Vehicles (EVs). Lucid Gravity SUV is currently being sold with a built-in NACS port, while the Lucid Air sedan is likely to gain access to the same @Tesla supercharger network before the end of the second quarter of 2025. pic.twitter.com/fQKtszwYVb
— Expert Car Reviews🚘 (@CarReviewExpert) May 17, 2025
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