Lucid Group Inc. (NASDAQ: LCID) shares are on a hot streak, climbing nearly 3.5% over the past three sessions and marking their longest winning streak in a month. This surge comes even as the broader market remains volatile ahead of the Federal Reserve’s interest rate decision, which is expected to set the tone for market direction.
Morgan Stanley Boosts Lucid with an AI Bull Case
Lucid received a major boost this week following Morgan Stanley’s upgrade of the stock from ‘Underweight’ to ‘Equal Weight’. The firm’s analysts, led by Adam Jonas, cited the EV maker’s growing potential to capitalize on the emerging AI revolution through strategic partnerships.
According to Morgan Stanley, Lucid could play a key role in the embodied AI theme, positioning itself as a reshored or “friend-shored” manufacturer with access to both capital and strategic relationships. The firm highlighted Lucid’s potential to bridge geopolitical divides, potentially collaborating with both China and Western automakers.
Lucid’s Edge in the U.S.-China EV Landscape
Amid escalating U.S.-China trade tensions, Morgan Stanley believes Lucid could benefit from China’s expertise in large-scale EV manufacturing, helping U.S. EV makers struggling with profitability. The analysts pointed to strengthening ties between Beijing and Saudi Arabia, suggesting Lucid’s Saudi-backed ownership could uniquely position it to foster better Sino-American auto relations.
Leadership Shake-Up and Delivery Expansion
Lucid’s stock had been under pressure following the unexpected departure of CEO Peter Rawlinson last month, raising concerns over the company’s future. However, investor sentiment has since rebounded, driven by Lucid’s strong quarterly earnings beat and its ambitious plan to increase 2025 deliveries by 120%.
The EV maker’s recently launched Gravity SUV has also sparked fresh optimism. The model is gaining attention for its premium design and performance, positioning Lucid as a compelling Tesla alternative, particularly as Elon Musk’s growing political involvement with President Trump’s administration creates uncertainty around Tesla’s future.
Retail Sentiment Flips from Bearish to Bullish
On Stocktwits, retail sentiment for Lucid has made a dramatic turnaround, shifting from bearish to bullish within a week. Message volume surged by 86%, signaling growing retail interest.
One retail investor called Lucid “the best alternative for Tesla haters”, citing the company’s improved marketing focus and growing product lineup as major upsides. Another investor boldly declared, “If this hits $10 this week, I will buy a Lucid.”
Lucid’s Strategic Partnerships and Tech Potential
Lucid’s in-house EV platform, proprietary powertrain, and battery technology are viewed as potential long-term value drivers. The company’s partnership with Aston Martin for battery tech licensing highlights its potential for future collaborations with other automakers.
While Lucid shares are down 2.7% in 2025, the stock has surged by over 43% in the past 12 months, signaling increasing confidence in the company’s growth trajectory. As Lucid strengthens its AI strategy, expands its EV lineup, and pursues new partnerships, it is positioning itself as a rising force in the next generation of electric mobility.
PDD Holdings Reports Mixed Q4 Results as Sales Growth Slows, But Stock Gains Amid China Tech Rally
