Lucid Group, Inc. (NASDAQ: LCID) continues to grapple with shifting investor sentiment as multiple analysts revise their earnings estimates and stock ratings. The electric vehicle (EV) maker, once heralded as a strong competitor in the luxury EV space, is now facing intensified scrutiny as analysts lower their projections for the company’s financial performance in 2025.
Cantor Fitzgerald Lowers Earnings Forecasts
Cantor Fitzgerald analyst A. Sheppard recently cut Lucid’s FY2025 earnings estimate, forecasting a loss of $1.03 per share, a downward revision from the prior estimate of $0.94 per share. Alongside this, Cantor Fitzgerald maintains a neutral rating on Lucid’s stock with a $3.00 price target—a clear indicator of cautious optimism despite the company’s ongoing struggles.
Mixed Analyst Sentiment on Lucid Stock
Several other financial institutions have weighed in on Lucid’s performance, with the overall analyst consensus leaning towards a “Hold” rating:
- Needham & Company LLC reaffirmed its hold rating on Lucid shares.
- Royal Bank of Canada (RBC) cut its price target from $3.00 to $2.00, citing ongoing operational and financial concerns.
- Bank of America downgraded Lucid from a neutral to underperform, slashing its price target from $3.00 to $1.00.
- R.F. Lafferty, however, upgraded Lucid to a buy rating, setting a price target of $4.00, betting on a potential turnaround.
- Benchmark initiated coverage with a buy rating and a $5.00 price target, showing confidence in Lucid’s long-term prospects.
With three analysts rating LCID as a sell, six assigning a hold, and two issuing a buy, the company’s average price target currently sits at $2.73, according to MarketBeat.
Stock Performance and Market Metrics
Lucid’s stock has been experiencing heightened volatility, reflecting investor uncertainty:
- Current price: $2.12 (as of last trading session)
- 52-week range: $1.93 – $4.43
- Market capitalization: $6.38 billion
- Debt-to-equity ratio: 0.77
- Price-to-earnings (P/E) ratio: -1.58
- Beta (volatility measure): 0.93
Lucid’s 50-day moving average sits at $2.94, while its 200-day moving average is $2.95, further highlighting the stock’s recent decline.
Institutional Investment Trends
Institutional investors and hedge funds continue to adjust their positions in Lucid, signaling both concerns and opportunities:
- Public Investment Fund increased its stake by 28.8%, now holding 1.77 billion shares, valued at over $5.34 billion.
- Vanguard Group Inc. boosted its holdings by 31.1%, now owning 110.3 million shares, worth approximately $333 million.
- Two Sigma Investments LP increased its stake by 4,320.7%, now holding 15.85 million shares, valued at $47.87 million.
- Renaissance Technologies LLC grew its position by 342.7%, now holding 16.54 million shares.
- Two Sigma Advisers LP initiated a new position worth $34.12 million.
Institutional ownership remains strong, with hedge funds collectively holding 75.17% of Lucid’s stock, demonstrating continued belief in the company’s long-term potential despite short-term struggles.
Lucid’s Business Model and Competitive Position
Lucid Group specializes in the design, engineering, manufacturing, and sale of electric vehicles and EV powertrains. The company also develops proprietary software and sells vehicles directly to consumers through retail and online sales channels.
While Lucid aims to compete with industry giants like Tesla, Rivian, and legacy automakers transitioning to EVs, its financial losses and production hurdles continue to be areas of concern for investors.
Key Takeaways for Investors
Lucid Group’s downward earnings revisions, mixed analyst ratings, and volatile stock performance underscore the company’s uncertain trajectory. While institutional investors remain invested in Lucid’s long-term growth, its near-term outlook appears challenging. Investors should closely monitor quarterly earnings reports, production updates, and industry trends to assess whether Lucid can regain momentum in the highly competitive EV market.
