Lucid Group Inc. (NASDAQ: LCID) shares are on a winning streak, surging nearly 3.5% over the past three sessions, defying broader market weakness. The rally comes as Wall Street analysts spotlight the EV maker’s AI potential, fueling optimism about its future prospects.
Lucid’s Stock Gets a Boost from Morgan Stanley Upgrade
On Monday, Morgan Stanley analysts, led by Adam Jonas, upgraded Lucid’s rating from “Underweight” to “Equal Weight”, citing the company’s potential to execute an AI strategy through partnerships.
According to the investment bank, Lucid is uniquely positioned to play a role in the “embodied AI” theme, benefiting from its status as a reshored or “friend-shored” manufacturer. The firm believes Lucid could leverage strategic relationships with both China and the West, navigating geopolitical tensions with flexibility.
China-Saudi Ties Could Favor Lucid
As trade tensions between the U.S. and China persist, Morgan Stanley pointed out how Lucid could benefit from China’s large-scale manufacturing expertise. The report highlights deepening ties between Beijing and Saudi Arabia, suggesting that Lucid—backed by Saudi Arabia’s Public Investment Fund (PIF)—could foster stronger Sino-American EV relations.
Lucid’s Ambitious Delivery Goals Spark Optimism
Despite CEO Peter Rawlinson’s surprise resignation last month, Lucid is pushing forward with aggressive growth plans. The company recently reported a quarterly earnings beat and announced a bold goal of increasing 2025 deliveries by 120%.
This ambitious target has reignited retail investor interest, with sentiment on Stocktwits flipping from bearish to bullish over the past week. Message volume surged 86%, reflecting growing confidence in the company’s future.
EV Market Shakeup: Lucid as a Tesla Challenger?
Lucid’s newly launched Gravity SUV is generating buzz, with some retail investors calling it the “best alternative for Tesla haters.” With Elon Musk increasingly entangled in Washington politics under a potential second Trump administration, investors see Lucid as a credible challenger to Tesla’s dominance.
AI Partnerships and Proprietary Tech Could Drive Value
Morgan Stanley also underscored Lucid’s in-house EV platform, proprietary powertrain, and battery technology as major value drivers. The company already has a battery tech licensing deal with Aston Martin, showcasing its potential to generate revenue through strategic partnerships.
LCID Stock Performance: A Rebound in the Making?
Although Lucid shares are down 2.7% year-to-date, they’ve gained over 43% in the past 12 months, signaling a potential turnaround. With AI-fueled optimism and fresh Wall Street endorsements, the stock could be positioned for further upside.
Retail investors are increasingly bullish, with some predicting that if LCID hits $10, they’ll buy a Lucid vehicle—a sign of growing retail enthusiasm.
