Lucid Group (NASDAQ:LCID) Stock Falls 2% on Analyst Downgrade

Key Points

• Lucid shares fell 2% after RBC cut its price target from $7 to $4 while maintaining a Sector Perform rating. The stock traded near $3.36, and MarketBeat’s consensus rating is “Reduce,” with a target price of $8.89.
• Analysts remain cautious about Lucid’s demand, execution and financial durability: 1 analyst rates it Buy, 9 Hold and 3 Sell. The company remains unprofitable, with a negative net margin and a recent quarterly EPS loss that exceeded analyst expectations.
• Lucid is pursuing growth and liquidity initiatives, including a planned French retail and service expansion and a $400 million draw under an affiliate loan facility. Third-quarter deliveries totaled 3,806 vehicles versus 2,954 produced, while the financing highlights its continued reliance on external capital.

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report)'s stock price traded down 2% during trading on Tuesday after Royal Bank Of Canada lowered their price target on the stock from $7.00 to $4.00. Royal Bank Of Canada currently has a sector perform rating on the stock. Lucid Group traded as low as $3.32 and last traded at $3.36. Approximately 8,715,736 shares changed hands during mid-day trading, a decline of 35% from the average session volume of 13,340,698 shares. The stock had previously closed at $3.43.

Other analysts have also recently issued research reports about the stock. UBS Group reissued a "hold" rating on shares of Lucid Group in a research note on Tuesday, October 6th. William Blair lowered Lucid Group to a "market perform" rating in a research note on Monday, August 3rd. Citigroup dropped their price target on Lucid Group from $14.00 to $11.00 and set a "buy" rating for the company in a research report on Wednesday, August 19th. Cantor Fitzgerald reissued a "neutral" rating on shares of Lucid Group in a research note on Monday. Finally, Zacks Research raised shares of Lucid Group from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 18th. One analyst has rated the stock with a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus target price of $8.89.

More Lucid Group News

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

• Positive Sentiment: French expansion could broaden Lucid’s addressable market. The company plans to open its first retail and service locations in France in early 2027, with a footprint of up to 16 locations. The move would give Lucid a physical sales and after-sales presence in one of Europe’s largest auto markets and strengthen its competition with Tesla in the premium EV segment. Tesla Faces New Luxury EV Rival in France as Lucid Plans 16 Locations
• Positive Sentiment: Some analysts still see substantial upside. Cantor Fitzgerald reiterated its Neutral rating but maintained an $8 price target, implying significant upside relative to recent trading levels. The target suggests the stock’s valuation could benefit if Lucid can improve demand and execute its growth plans. Analysts set Lucid LCID stock price target
• Neutral Sentiment: Lucid drew $400 million under an affiliate delayed-draw term loan facility. The borrowing provides additional near-term liquidity, but it also highlights the company’s dependence on external financing while it remains unprofitable and works to scale deliveries. Lucid draws $400 million under affiliate DDTL
• Neutral Sentiment: Third-quarter operating data showed 3,806 deliveries versus 2,954 vehicles produced. The delivery figure may indicate inventory conversion, but the production volume remains small for a company seeking to lower costs and achieve profitability. Lucid Group delivers fresh EV numbers
• Negative Sentiment: RBC lowered its Lucid price target from $7 to $4 and kept a Sector Perform rating. The cut reflects more cautious expectations for demand and execution, limiting the support provided by higher targets from other analysts. Lucid price target trimmed by Royal Bank of Canada
• Negative Sentiment: Investors continue to question Lucid’s sales trajectory and financial durability. Lucid has substantially underperformed both Rivian and the broader market, while commentary points to production cuts, a single manufacturing shift, uncertain demand, and possible future funding needs. A separate fair-value estimate was reduced from $8.40 to $7.61. Rivian versus Lucid: Which EV Stock Has a Better Chance of Making It?

Hedge Funds Weigh In On Lucid Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in LCID. IFP Advisors Inc lifted its stake in Lucid Group by 1,231.3% in the second quarter. IFP Advisors Inc now owns 3,781 shares of the company's stock worth $25,000 after acquiring an additional 3,497 shares during the last quarter. Allworth Financial LP boosted its stake in Lucid Group by 249.9% in the second quarter. Allworth Financial LP now owns 4,010 shares of the company's stock valued at $27,000 after acquiring an additional 2,864 shares in the last quarter. EverSource Wealth Advisors LLC boosted its position in shares of Lucid Group by 1,574.7% in the 1st quarter. EverSource Wealth Advisors LLC now owns 2,914 shares of the company's stock valued at $28,000 after purchasing an additional 2,740 shares during the period. Nykredit A S acquired a new stake in shares of Lucid Group in the second quarter valued at approximately $47,000. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in Lucid Group during the 4th quarter worth $77,000. Hedge funds and other institutional investors own 75.17% of the company's stock.

Lucid Group Price Performance

The firm's 50 day moving average price is $4.92 and its two-hundred day moving average price is $6.06. The firm has a market cap of $1.32 billion, a price-to-earnings ratio of -0.25 and a beta of 1.00.

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

Lucid Group Company Profile

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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