Lucid Group: EBITDA Breakeven Unlikely Before 2027 Amidst Competition

Summary:

  • Lucid Group stock has declined by 36% in the last 12 months and is likely to remain in a downtrend.
  • Lucid has disappointed on growth targets and faces challenges in meeting EBITDA breakeven before 2027, leading to potential equity dilution.
  • The EV industry is shifting focus to low-cost cars, which may impact Lucid’s premium segment and delay EBITDA breakeven further.

La Jolla, CA: Lucid Motors Showroom at Westfield UTC Mall

JannHuizenga

Investment Overview

I am initiating coverage on Lucid Group, Inc. (NASDAQ:LCID) stock with a “Sell” rating. In the last 12 months, Lucid stock has declined by 36%, and I believe that the stock is likely to remain in a downtrend. This initiating coverage discusses


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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