In several ways, the 2024 story of the embattled electric vehicle (EV) maker Lucid Motors (NASDAQ: LCID) has been one of a major comeback.
After suffering setback after setback in 2023 – including failing to reach delivery targets due to a decrease in demand, losing several key executives, and getting removed from the Nasdaq 100 index – the company spent much of the last 30 days rising in the stock market.
The recovery has largely been driven by a string of programs and partnerships with a Saudi aluminum producer and an American luxury commerce company, as well as by a new and attractive leasing scheme in Saudi Arabia that requires customers to pay only 50% upfront.
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Lucid stock chart
In the last 30 days, Lucid’s stock rose an impressive 31.10%, and the most recent trend is similarly positive, with LCID shares surging 6.15% in the last 5 trading days and closing the latest full session 2.20% in the green at $3.71.
Still, it can be argued that Lucid Motors stock comeback is impressive only relative to the broader context as the stock hit an all-time low in January and is down 10.80% since the year began and as much as 62.49% since its initial public offering (IPO).
Such a shaky performance and an uncertain uptrend begs the question of whether Lucid’s recent surge is but a temporary respite or indeed a glimpse of good things yet to come.
Lucid stock forecast
Whether looking at Lucid’s long-term decline or its short-term surge, it comes as a bit of a surprise that, as of February 20, the average 12-month forecast estimates the Lucid stock share price will surge 34.77% to $5.
The high estimate, which stands at $7 and was assigned by the Baird investment bank, would see the EV maker rise an even more impressive 88.68%.
On the other hand, the low forecast – projected by CFRA – would see Lucid collapse an equally significant 73.05% to just $1 per share.
Finally, it is important to note that the recent trend among analysts has been one of lowering the 12-month price targets for Lucid as, less than two weeks earlier, the average price target stood at $5.14.
This trend is hardly surprising given both Lucid Group’s own overall performance and the effects of what has recently been named the ‘EV winter’ – the impacts of which are most evident in the slowdown in demand as evidenced by the fact that one of the biggest names in the industry, Tesla (NASDAQ: TSLA), sold only one vehicle in South Korea in January.
Finally, despite the relatively high price targets, analysts’ recommendations are decisively more cautious, with as many as 7 of 9 accounted for by the stock analysis platform TipRanks, being neutral and 2 believing the right call for investors would be selling. At press time, none of the represented analysts rate Lucid as a “buy.”
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