Electric Up-And Comer Lucid's Stock 'Still In Park': Analysts Expect Investors To Keep 'Conservative Posture' On Tesla Rival

Electric vehicle company Lucid Group Inc (NASDAQ:LCID) reported first-quarter financial results Monday that saw revenue beat and earnings per share miss Street consensus estimates.

Analysts size up the results and what's next for the company.

The Lucid Analysts:

• Stifel analyst Stephen Gengaro has a Hold rating and $4 price target on Lucid.
• Needham analyst Chris Pierce has a Hold rating and no price target on Lucid.

Related Link: What’s Going On With Lucid Stock Tuesday?

Stifel on Lucid: The first quarter report had mixed results and no real surprises for 2024, Gengaro said.

The analyst said guidance for producing 9,000 vehicles in 2024 was reiterated by the company.

"While first-quarter production numbers came in lighter-than-expected, we believe the company's 9,000 vehicle production target for the year is reasonable," Gengaro said.

The analyst highlighted gross losses improving in the quarter.

"Lucid remains laser-focused on aligning production with demand while controlling costs."

Gengaro said the company's financial position should get it through "at least the launch" of the Lucid Gravity SUV. Additional capital could be needed after this key event with high cash burn, the analyst said.

The analyst said that while production is improving for Lucid, the company could still be in the "prove-it-to-me stage."

Needham on Lucid: Consumers and OEM partners are "still in park" as Lucid looks to grow its production, Pierce said.

"We continue to be believers in LCID's best in class technology driving industry leading efficiency, but we also continue to see low absolute delivery numbers, limiting fixed cost absorption driving financial statement losses and driving further capital needs," Pierce said.

The analyst said Lucid is confident that the Lucid Gravity SUV will be well received by consumers.

Pierce cautions that for bears, Lucid could be "a catalyst light story."

"We continue to think investors will take a conservative posture when considering the low penetration of LCID's existing lineup."

The analyst said investors could be underestimating the technology leadership Lucid has, and the deep pockets of the Saudi Arabian Public Investment Fund allow for patience.

LCID Price Action: Lucid shares are down 14% to $2.65 versus a 52-week trading range of $2.29 to $8.37. Lucid stock is down 66% over the last year.

Read Next: Lucid CEO Throws Down The Gauntlet With $48K EV Plan To Take On Tesla’s Dominance: ‘Wait Until Our Midsize Comes Out In Late 2026’

Photo: Shutterstock