Lucid (LCID) Stock: Analysts Grow Bullish as EV Maker Turns a Corner

TLDR

Table of Contents

Lucid Group stock rose 5.1% on Friday, closing at $2.16 per share with heavy trading volume
Morgan Stanley upgraded the stock from “underweight” to “equal weight” with a $3.00 price target
The company delivered 3,109 vehicles in Q1 2025, a 58% increase year-over-year
Lucid plans to launch its first SUV, the Gravity, in 2025 to expand its customer base
The company maintains strong liquidity with $5.76 billion in cash but faces ongoing profitability challenges

Lucid Group stock closed up 5.1% on Friday, reaching $2.16 per share after trading as high as $2.23 during the session. The electric vehicle maker saw unusually heavy trading volume with 211.4 million shares changing hands, up 151% from the average daily volume of 84.1 million shares.

The stock movement came following recent analyst upgrades and renewed interest in the luxury EV manufacturer. Morgan Stanley upgraded shares from “underweight” to “equal weight” rating in March, setting a $3.00 price objective for the company. Cantor Fitzgerald maintained a “neutral” rating with a $3.00 price target, while Robert W. Baird raised their target from $2.00 to $3.00.

Currently, two analysts rate the stock as a sell, eight have assigned hold ratings, and two have given buy ratings. The consensus rating remains “Hold” with an average target price of $2.68.

Lucid delivered 3,109 vehicles in Q1 2025, marking a 58% increase compared to the same quarter last year. The company produced 2,212 vehicles at its Arizona facility during the quarter, with an additional 600 units shipped to Saudi Arabia for final assembly.

The automaker reported Q1 2025 revenue of $235 million, up from $173 million in the prior year period. However, this fell short of analyst expectations of $250.5 million. The company posted an adjusted loss of $0.24 per share, missing the consensus estimate of $0.23 per share.

Product Expansion Strategy

Lucid’s flagship Air sedan continues to lead the industry in efficiency, achieving up to 5 miles per kilowatt-hour. The 2025 Air Pure model offers an EPA-estimated range of 420 miles, setting it apart from competitors in the luxury EV space.

The company is preparing to launch its first SUV, the Gravity, in 2025. This move represents a crucial step in broadening Lucid’s customer base and driving sales growth beyond the sedan market.

The 2026 Gravity SUV is the new model that startup Lucid Motors has chosen to follow its beautiful Air luxury sedan. It has two electric motors that provide all-wheel drive, and Lucid is claiming the Gravity's maximum range is 450 miles per charge. Both two- and three-row… pic.twitter.com/ymYooZNOOj
— Car and Driver (@CARandDRIVER) June 18, 2025

A midsize platform vehicle with a starting price below $50,000 is planned for production in late 2026. This lower-priced offering could help Lucid compete in a broader market segment.

Financial Position and Challenges

Despite revenue growth, Lucid faces ongoing profitability challenges. The company reported a negative gross margin and adjusted EBITDA of negative $263.5 million in Q1 2025. Free cash flow remained deeply negative at $589.5 million for the quarter.

Lucid maintains a strong liquidity position with $5.76 billion in cash as of Q1 2025. Management projects this cash position will support operations into the second half of 2026.

The company underwent a leadership change early in 2025. CEO Peter Rawlinson departed and Marc Winterhoff was appointed as Interim CEO during this transition period.

Lucid’s market capitalization stands at $6.57 billion. The stock trades with a beta of 0.78, indicating lower volatility than the broader market.

Institutional investors hold 75.17% of the company’s stock. Several hedge funds have recently adjusted their positions in the stock.

The company aims to produce 20,000 vehicles in 2025, more than doubling its 2024 output of approximately 9,029 vehicles. The Gravity SUV launch is expected to support this production increase.

Lucid has established a technology licensing agreement with Aston Martin, creating an additional revenue stream beyond vehicle sales. The company’s Air Grand Touring model produces about 6% fewer emissions than top U.S. EV competitors.

The stock has a 50-day moving average of $2.36 and a 200-day moving average of $2.57. Current analyst price targets range from $1.00 to $3.00 per share.

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