Written by Cláudio Afonso | LinkedIn | X
Bank of America (BofA) analyst John Murphy released on Wednesday a new research note slashing the firm’s price target on the EV maker Lucid Motors to $1.00.
The new update follows Lucid’s fourth quarter results where the company announced that its CEO and CTO Peter Rawlinson “has stepped aside from his prior roles” becoming now “Strategic Technical Advisor to the Chairman of the Board.”
Based on the latest closing price of $2.61, the updated target implies a downside of 61.7%.
In a new research note, the analyst said the departure of Peter Rawlinson is “much more consequential than understood by the market,” adding that expects product development to stall and consumer demand to be dampened. BofA reduced its estimates for future product volumes.
Redburn-Atlantic analyst Tobias Beith had also reduced the firm’s price target earlier this week by over 67% to $1.13, citing concerns about the company’s need to secure “significant additional capital.”
The company generated $234.5 million in revenue for the quarter, up from 157.2 million in the same period a year earlier. For full-year 2024, revenue reached $807.8 million, marking a 36% increase from $595.3 million in 2023.
For the final quarter of 2024, Lucid reported a net loss attributable to common stockholders of $636.9 million, while the net loss stood at $0.4 billion bringing the year’s total to $2.71 billion.
Lucid delivered 3,099 vehicles globally in the fourth quarter, setting a new record and reflecting a 79% year-over-year increase.
For this year, the company said on Tuesday it expects to produce “approximately 20,000 vehicles.” However, Lucid warned that it will “continue to prudently manage and adjust production to meet sales and delivery needs.”
