Lucid Group (LICD) issued several key announcements at its Investor Day event. The electric vehicle maker highlighted that its upcoming midsize platform will underpin three new electric vehicles aimed at the core of the electric vehicle market, with a starting price around $50K to compete directly with Tesla’s (TSLA) Model 3 and Model Y and other mass-market EV offerings. Management also said it sees a path to being cash flow positive by the late decade.
RBC Capital analyst Tom Narayan said the firm likes the general direction that Lucid (LCID) is now taking. “On the positive side, we applaud Lucid for its ambitious midsize program. It is smart to target the meat of the US auto market, where brand recognition is less important,” he updated. “We think a key obstacle Lucid has had in selling its premium vehicles is that it is an unknown brand going up against the likes of Porsche and Mercedes,” he added. Lucid (LCID) up against the Tesla (TSLA) Model Y and the Toyota (TM) RAV4 4 is seen as making more sense, especially if the car can boast better battery range relative to price. The firm has a Sector Perform rating on Lucid (LCID).
Morgan Stanley analyst Andrew Percoco said Lucid’s (LCID) innovative midsize platform supports scaling to being free cash flow positive, aided by autonomy partnerships that expand the brand and diversify revenue. “However, weak EV demand and execution risk in a competitive market could challenge the near-term cash flow outlook,” he warned. The firm kept an Underweight rating in place.
Shares of Lucid (LCID) rose 1.1% in premarket trading on Friday after shedding 7.9% on Thursday.