Lucid Group (NASDAQ:LCID) Stock Falls 1.8% - Here's Why

Key Points

• Lucid shares fell 1.8% to $3.82 amid concerns about weak demand and reduced production. The company produced 2,954 vehicles but delivered 3,806 in the third quarter, lowering finished-vehicle inventory by 852 units.
• Lucid is restructuring teams and leadership as part of an operational reset, but analysts remain cautious. Cantor Fitzgerald maintained a Hold rating, while the broader consensus is “Reduce,” with a $9.22 price target.
• The company continues to face significant financial pressure, including a quarterly EPS loss of $2.78, negative margins and substantial cash-burn concerns. BNP Paribas characterized Lucid’s path toward stronger operations and sustainable demand as a “long and difficult journey.”

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) shares traded down 1.8% on Thursday. The company traded as low as $3.72 and last traded at $3.82. 12,163,010 shares traded hands during trading, a decline of 9% from the average session volume of 13,388,135 shares. The stock had previously closed at $3.89.

Key Lucid Group News

Here are the key news stories impacting Lucid Group this week:

• Positive Sentiment: Lucid produced 2,954 vehicles and delivered 3,806 in the third quarter, reducing finished-vehicle inventory by 852 units. Aligning production with orders could improve cash efficiency and reduce the cost of holding excess inventory. Lucid Builds Fewer EVs Than It Sells As CEO’s Cash-Preservation Reset Takes Hold
• Neutral Sentiment: Management has begun restructuring teams and leadership roles as part of a broader operational reset. The changes may support longer-term efficiency, but investors will want evidence that they can improve demand, production execution and liquidity. What Does Lucid Group Production Cut Under Its New CEO Mean?
• Neutral Sentiment: Cantor Fitzgerald maintained its Hold rating, signaling limited conviction that the operational changes currently justify a more bullish view. Cantor Fitzgerald Sticks to Its Hold Rating for Lucid Group
• Negative Sentiment: Third-quarter production and deliveries declined from a year earlier, while Lucid’s decision to cut output to match current orders suggests demand remains weak. Investors may view the production reduction as a sign of limited near-term growth. Lucid Builds Fewer EVs Than It Sells As CEO’s Cash-Preservation Reset Takes Hold
• Negative Sentiment: BNP Paribas described Lucid’s delivery performance as lackluster and said the company faces a “long and difficult journey” toward stronger operations and sustainable customer demand. The commentary adds to concerns about cash burn, profitability and the viability of the turnaround. Lucid Faces a Long and Difficult Journey, BNP Says After Q3 Delivery Miss

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. William Blair downgraded shares of Lucid Group to a "market perform" rating in a research note on Monday, August 3rd. UBS Group reiterated a "hold" rating on shares of Lucid Group in a research note on Tuesday. Royal Bank Of Canada reissued a "sector perform" rating and issued a $7.00 price objective (down from $8.00) on shares of Lucid Group in a report on Monday, July 13th. Weiss Ratings restated a "sell (e+)" rating on shares of Lucid Group in a research report on Monday, September 21st. Finally, Cantor Fitzgerald reaffirmed a "neutral" rating on shares of Lucid Group in a report on Monday, September 21st. One investment analyst has rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus price target of $9.22.

Lucid Group Stock Down 1.8%

The firm has a 50 day moving average of $5.17 and a two-hundred day moving average of $6.20. The firm has a market capitalization of $1.51 billion, a price-to-earnings ratio of -0.28 and a beta of 1.00.

Lucid Group (NASDAQ:LCID - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported ($2.78) EPS for the quarter, missing the consensus estimate of ($2.36) by ($0.42). The business had revenue of $405.35 million for the quarter, compared to analyst estimates of $381.59 million. Lucid Group had a negative return on equity of 1,391.51% and a negative net margin of 249.21%.The firm's revenue was up 56.2% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.24) EPS. Sell-side analysts forecast that Lucid Group, Inc. will post -12.15 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Bank of America Corp DE increased its holdings in Lucid Group by 10.9% in the 1st quarter. Bank of America Corp DE now owns 1,919,073 shares of the company's stock worth $18,289,000 after purchasing an additional 189,134 shares in the last quarter. Bank of New York Mellon Corp lifted its holdings in shares of Lucid Group by 11.8% during the first quarter. Bank of New York Mellon Corp now owns 449,196 shares of the company's stock worth $4,281,000 after purchasing an additional 47,427 shares during the period. Lazard Asset Management LLC grew its position in shares of Lucid Group by 192.6% in the 1st quarter. Lazard Asset Management LLC now owns 304,737 shares of the company's stock valued at $2,904,000 after buying an additional 200,604 shares during the last quarter. Calamos Advisors LLC boosted its holdings in Lucid Group by 50.0% in the first quarter. Calamos Advisors LLC now owns 225,000 shares of the company's stock valued at $2,144,000 after acquiring an additional 75,000 shares during the last quarter. Finally, Quantinno Capital Management LP increased its position in shares of Lucid Group by 246.0% during the first quarter. Quantinno Capital Management LP now owns 202,651 shares of the company's stock worth $1,931,000 after buying an additional 144,089 shares during the period. 75.17% of the stock is currently owned by institutional investors and hedge funds.

About Lucid Group

Lucid Group, Inc is an electric vehicle company headquartered in Newark, California. Through its Lucid Motors subsidiary, the company designs, engineers and manufactures luxury electric vehicles, with a focus on long range, performance, efficiency and advanced in-vehicle technology.

Lucid's product lineup includes the Lucid Air, a premium electric sedan, and the Lucid Gravity, an electric SUV. The company also develops electric powertrain systems, battery technology and related vehicle software.

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