Lucid Group (NASDAQ: LCID), the luxury electric vehicle (EV) maker, has faced a tumultuous start to 2025. With its stock hovering near a year-to-date low of $2.12 as of March 6, 2025, down 2.31% pre-market and a steep 24.91% over the past month, the company has been teetering on the edge of collapse below the $2 mark.
The announcement of CEO Peter Rawlinson stepping back from the helm has only fueled uncertainty, sending shares spiraling from a 2025 high of $3.48. Yet, amidst the gloom, some analysts and investors see a potential diamond in the rough for those willing to stomach the risk.
Lucid analyst updates
On Wednesday, CFRA analyst Garrett Nelson revised his rating on Lucid from ‘Strong Sell’ to ‘Sell,’ maintaining a $1 price target. Nelson’s cautious outlook reflects Lucid’s persistent financial struggles, including a gross profit margin of -114.27% and an EBITDA of -$2.7 billion over the past twelve months.
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With a staggering gross loss exceeding $90,000 per vehicle and negative free cash flow of $2.9 billion in 2024, the analyst underscored the daunting road ahead. Nelson also highlighted the leadership transition as a potential wildcard—suggesting a new CEO could pivot the company’s strategy to address these “fundamental headwinds.”
Other analysts have weighed in with a range of perspectives. On February 26, BofA Securities downgraded Lucid from ‘Neutral’ to ‘Underperform,’ slashing its price target from $3 to $1, citing doubts about the company’s ability to deliver on future products.
Stifel trimmed its target from $3.50 to $3 while holding a ‘Neutral’ rating, pinning hopes on upcoming launches. Cantor Fitzgerald also maintained a ‘Neutral’ stance with a $3 target, praising Lucid’s EV tech prowess but flagging negative margins and macroeconomic pressures.
Yet, a standout bullish call came from Benchmark on February 12, initiating coverage with a Buy rating and a $5 price target—a lofty goal that seems distant but signals confidence in Lucid’s long-term potential.
LCID oversold and undervalued?
Despite the grim numbers, there’s a silver lining for contrarian investors. Lucid’s Relative Strength Index (RSI) has dipped into oversold territory, hinting that the stock may be poised for a rebound if sentiment shifts.
The company’s 2025 production guidance of 20,000 units, more than double the 9,029 vehicles produced in 2024, suggests ambitious growth plans. If Lucid can execute on this ramp-up and upcoming product launches, such as the much-anticipated Gravity SUV, it could start chipping away at its cash burn and narrow those yawning losses.
Lucid’s luxury EV niche also sets it apart in a crowded market. With backing from Saudi Arabia’s Public Investment Fund and a reputation for cutting-edge battery technology, the company retains a foundation to build upon. A new CEO could bring fresh ideas to streamline operations and boost efficiency—potentially turning the tide.
For stock market enthusiasts, Lucid represents a high-risk, high-reward bet. The oversold RSI adds a technical case for a potential bounce, making LCID a stock to watch.
At $2.12, it’s trading at a fraction of its historical highs, offering a low entry point for those betting on a turnaround. While the $1 price targets from CFRA and BofA signal caution, Benchmark’s $5.00 target and Stifel’s $3 outlook suggest there’s upside if execution improves.
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