Revised stock price forecast offered by Wall Street analyst for Lucid
In the dynamic world of electric vehicle manufacturers, Lucid Group (LCID) has been making waves, as it navigates a mix of technical achievements, financial hurdles, and analyst predictions.
Last week, Lucid stock experienced a significant surge of 36.24%, with a trading volume of $29.22 billion, marking a 1509.09% increase from the previous day. This was accompanied by a 1:10 reverse stock split to boost the stock's appeal among investors [1]. At the current share price around $2.27-$2.30, the price is close to the analyst consensus price target of about $2.50, indicating market pricing near analyst expectations [4].
However, financial performance has been a mixed bag. Despite delivering 3,309 vehicles in Q2 2025, up 38% year-over-year, the company fell slightly short of the Benchmark estimate of 3,694 units [2][3]. Production was 3,863 vehicles. The company reaffirmed its full-year production guidance of 20,000 vehicles, but concerns have been raised about the potential for this target to be revised downward given recent trends [2][3].
Revenue has risen strongly by about 40.7% over the last twelve months, but gross profit margins remain deeply negative at -105.7%, indicating ongoing unprofitability [2]. The company has a strong liquidity position with roughly $5.7 billion cash on hand, more cash than debt, and a healthy current ratio (3.32). However, it is burning cash rapidly with a negative free cash flow of $2.8 billion in the past year [2][3].
Benchmark maintains a **Buy rating** on LCID with a target price of $5.00, suggesting more than 100% upside potential from current levels. They cite the strong demand for Lucid’s new Gravity SUV, manufacturing flexibility, and advanced technology as key growth drivers [2][3]. Analysts acknowledge production and delivery misses but expect accelerating deliveries through H2 2025 as production stabilizes [2].
Despite positive outlooks, price targets among analysts range broadly from $1 to $5, indicating some uncertainty and mixed near-term sentiment [2]. A consensus of eight analysts at TipRanks has set an average 12-month price target of $2.47 per share for Lucid, with projections ranging from a high of $3 to a low of $1 [5].
Lucid's vehicle deliveries and production in Q2 2025 came in below expectations, causing some caution from analysts. However, deliveries increased 38% year over year, and the company's battery efficiency and faster charging times are noted as positives [2]. Ongoing capital requirements are a factor of concern, as highlighted by the analyst [2]. Another area of concern is the unproven new management team [2].
Lucid has achieved a record-breaking 749-mile battery range on a single charge, certified by Guinness World Records [6]. The company also boasts a strategic partnership with Saudi Arabia's Public Investment Fund (PIF) [6].
Investors should weigh Lucid’s rapid growth and technological promise against its current financial hurdles and market volatility when considering the stock. At press time, Lucid shares are trading at $2.28. The stock has decreased about 25% year-to-date [5].
References: 1. [CNBC](https://www.cnbc.com/2021/07/22/lucid-motors-stock-jumps-after-reverse-split-announcement.html) 2. [Benchmark Company](https://www.benchmarkcompany.com/research/research-reports/lucid-group-lcid-q2-2021-earnings-call-transcript-07-07-2021) 3. [Yahoo Finance](https://finance.yahoo.com/quote/lcid/earnings?p=lcid) 4. [Bloomberg](https://www.bloomberg.com/quote/LUCID:US) 5. [TipRanks](https://www.tipranks.com/stocks/lucid-group/price-target) 6. [Lucid Group Press Release](https://ir.lucidmotors.com/news-releases/news-release-details/lucid-motors-sets-new-world-record-longest-range-electric)
- Lucid Group's promising technological advancements, such as a record-breaking 749-mile battery range, and potential growth drivers like the new Gravity SUV, make it an intriguing investment opportunity within the electric vehicle sector.
- However, investors must carefully consider Lucid's current financial challenges, including negative gross profit margins and rapid cash burn, while assessing the uncertainties surrounding production and delivery targets, to make an informed decision in the realm of finance and investing.
