Written by Cláudio Afonso | LinkedIn | X
One day after Lucid hosted its Technology & Manufacturing Day in Arizona, BofA Securities analyst John Murphy released a new research note reiterating a Neutral rating and a $3.55 price target on the stock.
Commenting on the event, the analyst said it “showcased Lucid’s tech advancements and the related cost advantages they can bring.”
In the presentation, Lucid unveiled the first teaser image of its 2026 vehicle aimed to start below $50,000.
“Management also touched upon the next steps in the company’s roadmap, which include the Gravity production, expected to commence in late 2024, and the launch of a mid-sized vehicle in late 2026,” Murphy added.
The analyst sees year to date deliveries — which have surpassed last year’s figures of 6,001 units — as “encouraging”. However, the analyst sees that a “general slowdown in EV demand” can risk the scale Lucid needs to become profitable.
“Excluding the cost advantages of Lucid’s technology versus competition, the company did not provide any update on financial aspects, although management mentioned unit sales have already matched 2023 volumes by the end of August, which is encouraging,” he wrote.
Lucid has recently reaffirmed the annual production guidance of 9,000 vehicles. If it reaches its annual production target, the company’s annual production figures will increase by about 6.79 per cent from 2023.
“Lucid’s CEO and founder, Peter Rawlinson, made clear that the path to profitability highly depends on scale. However, a general slowdown in EV demand increases uncertainty on that front. Therefore, we maintain our Neutral rating on Lucid.”
Earlier today, also Needham analyst Vikram Bagri reiterated the Hold rating on the stock saying the firm maintains a favourable view of the company despite admitting that, “to date, the messaging hasn’t resonated with consumers”.
Written by Cláudio Afonso | LinkedIn | X
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