As 2024 moves into its 11th month, it increasingly appears like the stock of the troubled electric vehicle (EV) maker Lucid Motors (NASDAQ: LCID) is held together by a motley mix of hope and Saudi money.
Such a notion came into particular focus as a media appearance of the company’s CEO turned investors sour on a development that was supposed to reinvigorate LCID shares, but instead triggered a crash.
Many hoped that Lucid’s upcoming SUV models would increase sales, but the revelation that the first new model will have a price tag at and above $94,000, with the cheaper one coming only next year, diminished the bull case.
Picks for you
Additionally, the ‘cheaper’ model did not bring much comfort as it is still expected to cost a steep $80,000.
Given the previously lackluster results and the worries stemming from SUV revelations, LCID stock’s performance in 2024 – a 45.42% year-to-date (YTD) drop to the 52-week low of $2.27 – hardly appears surprising. The same can be said about the shorter timeframes.
Lucid shares also plunged 14.37% in the last five days and are down 4.94% in the last 24 hours.
AI sets Lucid stock price target for the end of 2024
Considering the business and stock market developments, Finbold turned to ChatGPT-4o’s advanced artificial intelligence (AI) to gauge whether there is any hope left for LCID investors in the final months of 2024.
The platform, in turn, identified several factors as crucial for Lucid stock’s future.
Unfortunately, ChatGPT was not particularly insightful in its analysis as it determined the launch of the Gravity SUV, the capital-raising efforts, production advancements, and delivery milestones as the main areas of interest.
As evidenced by LCID stock’s performance, none of these has so far had an exceptionally positive effect. The Gravity SUV news was disappointing, and the delivery reports only brought Lucid’s shocking failure to meet its old promises into focus.
When looking ahead, the AI also did not impress with the details. It opined that product diversification – something the SUV was supposed to bring about – remains important for Lucid’s long-term health. It concluded the same about the need for the company to scale up its production.
Still, considering that ChatGPT also pointed toward Lucid’s stupendous decline from all-time highs (ATH) and stiff competition from other major EV manufacturers, it is somewhat surprising that it predicted a moderate upside in the final months of the year, with a climb to between $3 and $3.5 per share.
With Lucid’s November 7 earnings around the corner and analysts anticipating a decline, the AI prediction looks unlikely to rise even to the lower end of $3, which would be a 32% increase.
Featured image:
Berlfein Michael. A Lucid Motors retail dealership storefront is seen with demo electric cars available for viewing at a local mall. Digital image. Denver, CO – May 15 2024. Shutterstock, May 20, 2024. Date retrieved: November 1, 2024.
