The past twenty-four hours have been quite eventful for Lucid (NASDAQ: LCID), with multiple Wall Street firms weighing in on the electric vehicle (EV) manufacturer following the latest earnings report.
Fourth-quarter revenue came in at $522.7 million, above the consensus estimates of roughly $446 million and up 123% year over year from the same period in 2024. However, while Lucid improved its fiscal 2025 gross margin by about 42%, profitability remains under significant pressure, with gross margins still deeply negative over the past year.
Accordingly, market analysts remain cautious in their predictions. For instance, Cantor Fitzgerald trimmed its Lucid stock from $21 to $14 on Wednesday, February 25, while reiterating a ‘Neutral’ rating. On the same day, Baird dropped its own forecast from $14 to $13 and rated the stock a ‘Hold.’
Cantor also cited reduced production outlook, negative gross margins, and additional capital requirements as further headwinds and reasons for the lower price target. Of course, Lucid’s softer-than-anticipated production outlook did not help either, as the management is guiding for 25,000 to 27,000 vehicles in 2026, a range Cantor Fitzgerald described as “mildly disappointing.”
“Our ‘Neutral’ rating is unchanged, and we lower our PT to $14, driven by lower production guidance, persistently high negative gross margins, additional capital needs, a worsening macro environment, and tariff uncertainty,” the Cantor note read.
Meanwhile, although maintaining their $17 LCID price target and ‘Hold’ rating, Stifel called the results “modestly negative for the shares.”
The firm noted that while fourth-quarter revenue of $522.7 million topped their estimate by 7.9%, profitability metrics were materially weaker than expected. Gross loss at $421.9 million and adjusted EBITDA at negative $874.7 million, for instance, were significantly worse than the expected negative $290.6 million and negative $460.1 million. Like Cantor, Stifel attributed the miss to ongoing tariff pressures and elevated operating expenses.
Certainly, the most bearish reaction to the earnings report was that of Morgan Stanley. Namely, the investment bank reiterated its ‘Sell’ rating with a Lucid share price target of $10, which is currently the lowest of the seven Wall Street predictions recorded over the past three months on TipRanks.
Nonetheless, the same market analysis platform suggests that analysts still collectively see Lucid shares going up more than 36% over the next twelve months, as the average price target sits at $14. It must be noted, though, that the stock has not a single ‘Buy’ rating, as six analysts have dubbed it a ‘Hold’ and one a ‘Sell.’
