Impacted by tariffs and higher input costs, Lucid (LCID) fell further into the red in the third quarter and trimmed its 2025 production guidance to 18,000 vehicles from a prior range of 18,000 to 20,000. While the results were not bearish for Stifel to downgrade Lucid (LCID), the firm held onto its Hold rating amid expectations for additional capital to be required over the next few years, and lack of current visibility on its Gravity sales and midsize rollout.
Stifel also lowered its target price for Lucid (LCID) by 19% to $17 which assumes 20% upside from Friday’s closing price.
The combination of disappointing Q3 results, management changes, senior note offering, and now Stifel’s cautious note on the automaker continues to weigh on Lucid (LCID) shares, down for a seventh straight day to a record low.
While Stifel’s Stephen Gengaro finds Lucid’s Air to be an outstanding vehicle and the technology a “key differentiator,” his Hold rating and $17 price target reflect several key elements that are likely to keep growth muted for the near term.
Headwinds include improved production that still leaves the company in “prove-it” mode; uncertainty around the timing and path to achieving positive gross margin and EBITDA; pressure from elevated interest rates on sales and pricing; continued high cash burn; and U.S. EV policy changes that weigh on both Lucid (LCID) and the broader EV sector.
Lucid (LCID) shares are down another 9% on Monday, furthering the stock’s year-to-date loss to 55%.