Lucid Stock Plunges 8.3% as Production Targets Slump
Lucid Group's stock (NASDAQ: LCID) has seen a significant downturn, closing at $22 after an 8.3% drop on the day. The company has faced challenges this year, with shares plunging nearly 30% year-to-date. Analysts maintain a cautious stance, with most rating the stock as a 'Hold'.
Lucid's recent struggles are reflected in its reduced production targets. The company now expects to deliver 18,000 to 20,000 vehicles this year, a decrease from earlier projections due to slower-than-anticipated deliveries. This revision comes amidst a broader sell-off in Lucid stock, driven partly by the expiration of the $7,500 U.S. EV tax credit and a recent 1-for-10 reverse stock split.
Analysts' views on Lucid are mixed. Stifel's Stephen Gengaro raised the price target to $21 while maintaining a 'Hold' rating. Cantor Fitzgerald's Andres Sheppard has a 'Neutral' rating and a $26 price target, citing Lucid's strong balance sheet and production momentum. The average 12-month price target stands at $30.90, suggesting potential upside of about 40%. However, bearish sentiment is prevalent in the short term.
Lucid's Q3 deliveries, totaling 4,078 vehicles, showed a 47% year-over-year increase but fell short of Wall Street's estimates. Despite the challenges, Lucid continues to attract analyst attention, with Canaccord Genuity previously issuing a buy recommendation. As the company navigates these hurdles, investors await signs of recovery in Lucid's stock performance.
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