Summary
⚈ Stifel, Cantor Fitzgerald, and Needham all reiterated Hold/Neutral ratings, citing optimism around the Gravity SUV.
⚈ LCID remains down over 12% year-to-date as investors weigh production goals against persistent financial challenges.
Several investment banks have issued a cautiously optimistic outlook on Lucid (NASDAQ: LCID) stock at a critical moment, following the electric vehicle (EV) maker’s mixed first-quarter results.
In Q1, Lucid reported a widening net loss of $731 million, up from $685 million a year earlier. Despite the loss, the company delivered 3,109 vehicles and generated $235 million in revenue, a 36% year-over-year increase.
Looking ahead, Lucid aims to ramp up production to 20,000 vehicles in 2025, more than double last year’s total of 9,000.
The market has reacted modestly, with LCID stock rising 1.7% to $2.66 at press time. However, shares remain down over 12% year-to-date.
Analysts update Lucid stock price
On May 12, Stifel analyst Stephen Gengaro reiterated a ‘Hold’ rating and $3 price target for Lucid, citing solid Q1 2025 performance driven by improved cost management and progress toward annual production goals. The firm expressed optimism about the upcoming Gravity SUV and its potential to boost sales and brand visibility through 2026. However, Gengaro maintained a cautious stance due to Lucid’s ongoing cash burn and the potential need for additional capital. Stifel also flagged tariffs as a possible drag on margin recovery.
That same day, Cantor Fitzgerald analyst Andres Sheppard reaffirmed a ‘Neutral’ rating on Lucid, highlighting its strong partnership with Saudi Arabia’s Public Investment Fund (PIF) and competitive EV technology. He pointed to the Gravity SUV, now in production, as a potential growth catalyst. Still, the firm remained cautious due to Lucid’s ongoing financial struggles, including negative gross margins, possible capital raises, recent management changes, and broader macroeconomic risks.
On May 7, Needham analyst Chris Pierce upheld a ‘Hold’ rating for Lucid, citing encouraging early signs from the Gravity SUV, which he sees as a potential near-term growth driver. While Lucid posted a 58% year-over-year rise in vehicle deliveries and beat EPS expectations, revenue fell short of forecasts. Pierce acknowledged the company’s strong liquidity and favorable tariff environment but flagged ongoing losses, high cash burn, and uncertainty around its ability to scale profitably.
Featured image via Shutterstock
