Lucid Motors (NASDAQ: LCID) is making waves on Wall Street after Morgan Stanley’s (NYSE: MS) Adam Jonas revised his rating on the stock, upgrading it from ‘underweight’ (sell) to ‘equalweight’ (hold). Interestingly, Jonas maintained his previous $3 price target, which still implies a 25.52% upside from the stock’s press-time price. However, he now sees Lucid’s outlook as more balanced, with its risks and potential rewards reaching a state of equilibrium.
Lucid’s AI-Powered Pivot Sparks Optimism
The upgrade comes on the heels of leadership changes at Lucid Motors, which analysts believe could drive a strategic shift. The company is reportedly leaning into artificial intelligence (AI), aiming to position itself as a key player in the next-generation battery electric vehicle (BEV) market. Jonas specifically highlighted Lucid’s potential to leverage AI through strategic and sovereign partnerships amid the growing urgency to boost onshore EV manufacturing capacity.
According to Jonas, Lucid’s stock could see significant upside in a bullish scenario, with the potential to reach $10 per share—a staggering 318.41% gain from current levels.
CEO Shake-Up and Renewed Confidence
The change in Lucid’s top management is also drawing attention. Benchmark’s Mickey Legg found the company’s new leadership team compelling enough to rate LCID as a ‘buy’, signaling a rare vote of confidence in the embattled EV maker.
Lucid has faced a multi-year stock market decline, but the involvement of Saudi Arabia’s Public Investment Fund (PIF), which owns a majority stake, continues to provide a financial backstop. The PIF’s support has helped Lucid avoid being burdened with more ‘sell’ ratings, despite its struggles.
Wall Street’s Neutral Stance on Lucid
Despite its volatile stock performance, most analysts remain on the fence. Out of 17 recent analyst ratings, 10 opted for a neutral stance, according to TradingView data retrieved by Finbold on March 18. This reflects a cautious sentiment, as the market awaits evidence of improved execution and a clearer path to profitability.
Lucid’s increasing AI involvement and leadership overhaul could mark a turning point, but Wall Street appears to be taking a wait-and-see approach. With bullish price targets as high as $10 and the stock’s recent momentum, investors will be closely watching Lucid’s next moves.
