Lucid (NASDAQ: LCID) stock crashed 10% following mixed first-quarter results that included widening net profit losses and weaker-than-expected deliveries. Unsurprisingly, Wall Street is already reacting to the news with some unfavorable price revisions.
Namely, Canaccord trimmed its price target on Lucid from $14 to $8 on May 6 while reiterating a ‘Hold’ rating and pointing to increased uncertainty after the company pulled its full-year outlook.
Specifically, the downgrade follows Lucid’s decision to suspend prior guidance, which had called for fiscal 2026 production of 25,000 to 27,000 vehicles and capital expenditures between $1.2 billion and $1.4 billion.
Looking ahead, Canaccord expects Lucid’s upcoming Gravity SUV to drive sales, forecasting fiscal 2026 deliveries of 23,185 units. In addition, it argues that the company’s next-generation mid-size platform is going to be a critical long-term catalyst.
Cannacord lowers Lucid stock price target
Analyst Kyle Mikson noted that a key differentiator for the mid-size platform is its simplified design, which could lower costs and enable more competitive pricing, potentially improving Lucid’s margin profile.
On the strategic front, the analyst noted Lucid’s deepening partnership with Uber (NASDAQ: UBER), expanding its planned robotaxi fleet to more than 35,000 vehicles from around 20,000. The six-year collaboration is slated to begin in the second half of 2026, and Uber has committed a total of $500 million to the initiative.
Additional catalysts over the next 12–18 months, Mikson argued, include the completion of Lucid’s AMP-2 facility in Saudi Arabia and liquidity, with approximately $3.2 billion on hand as of the past quarter.
Risks are, however, numerous, and include suspended guidance, lower production expectations, persistently negative gross margins, and the likelihood of further capital needs. Accordingly, while Lucid’s long-term story is supported by new platforms, partnerships, and technology roadmaps, execution risks and limited visibility remain a large obstacle.
“Overall, we remain Neutral, and we lower our PT to $8 due to guidance suspension, lower production expectations, persistent high negative gross margin, additional capital needs, worsening macro, increased autonomy competition, and tariff uncertainty,” Mikson wrote.
Is Lucid stock a buy?
Considering the underwhelming quarterly performance and Canaccord’s analysis, it will come as no surprise to see that LCID shares currently hold a ‘Hold’ consensus, based on a total of 11 Wall Street ratings in the past three months.
Still, at the time of writing, the average Lucid share price target sits at $11.16 on TipRanks, implying an 87.5% upside from the last closing price, which shows that there’s still some kind of silver llining in the otherwise murky narrative.
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