Lucid Stock Falls On Q4 Results, CEO Exit: Analysts See 'Surge In Demand' For Gravity SUV

Lucid Group Inc LCID analysts highlight the strengths and weaknesses of the EV company after announcing a CEO transition and fourth-quarter financial results.

The Lucid Analysts: Cantor Fitzgerald analyst Andrew Sheppard maintained a Neutral rating on Lucid with a $3 price target.

Needham analyst Chris Pierce reiterated a Hold rating with no price target.

Cantor Fitzgerald on LCID: Vehicle production guidance of 20,000 for fiscal 2025 was in line with estimates, Sheppard said in a new investor note.

The analyst said Lucid's gross margins beat, but still have a long way to go.

Management commentary said the company has sufficient liquidity into the second half of 2026, the analyst added.

The analyst highlighted Lucid's newest vehicles, including the Gravity SUV seven-seater SUV. The vehicle started deliveries previously and could expand Lucid's total addressable market size. A midsize vehicle with a starting price under $50,000 remains a key future catalyst for the analyst.

"We believe this vehicle may allow Lucid to scale-up production at higher volumes, and with its affordable price point, the company should experience a surge in customer demand," Sheppard said.

While Sheppard was bullish on the new vehicle launches and the company's technology, risks remain with high negative gross margins, additional capital needs, a new management team and worsening macro conditions.

Read Also: Lucid Deliveries Up 51% In January, Here’s How Many Gravity SUVs Sold In First Full Month

Needham on LCID: The EV company showed delivery momentum in the quarter, but leadership changes could add a new wrinkle, Pierce said in a new investor note.

"LCID continues to show improving delivery momentum, and we see a low bar for continued momentum as they lean into advertising to support the Gravity SUV launch as they ramp production," Pierce said.

The analyst said this was Lucid's fourth consecutive quarter of record deliveries and demand could pick up with the Gravity SUV launch.

"Gravity SUV orders are exceeding management expectations from a volume and an ASP perspective, and we continue to view the Gravity launch as a second chance at a first introduction for the brand."

The analyst said fighting against the positive near-term unit trends is the company's uncertainty with Peter Rawlinson stepping down from the CEO and CTO roles.

"Looking longer term, the timing of positive gross margins and units needed to achieve positive gross margins is still an unknown and likely not a near-term event given LCID's current scale."

LCID Price Action: Lucid stock is down 11.13% to $2.32 on Wednesday versus a 52-week trading range of $1.93 to $4.43. Lucid stock is down 27% over the last year.

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Photo: Courtesy Lucid