Lucid (NASDAQ:LCID) offered something for both bulls and bears in its Q3 2025 earnings report. On the positive side, the luxury EV maker recorded its seventh consecutive quarter of rising deliveries, underscoring growing brand traction. Lucid also continues to pursue ambitious technological goals, recently forming a partnership with Nvidia to advance its efforts in autonomous driving.
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However, the report also gave bears plenty of ammunition. The company missed both revenue and earnings expectations, while its net losses swelled to $2.5 billion over the first three quarters of 2025.
So far this year, the market has focused on the negatives. Despite operational progress, LCID shares have fallen ~43% year to date.
In light of the mixed results, Needham analyst Chris Pierce recommends staying on the sidelines for now.
“We reiterate our Hold rating on LCID post 3Q results and commentary, with visible brand and delivery momentum not enough to drive escape velocity specific to LCID’s financials,” Pierce noted.
Pierce acknowledges the growing deliveries during the latest quarter. Though he points out that the expiring $7,500 EV tax credit could have driven additional sales in Q3, Pierce also mentions that Lucid’s October numbers were also strong.
Moreover, the company’s push into the world of autonomy is a very intriguing “potential catalyst.” In fact, the analyst is strongly encouraged by Lucid’s ambitions to become the first manufacturer to hit the market with a level 4-enabled consumer vehicle.
“LCID’s ability to delivery against this goal [is] more than enough to drive a potential re-rating in the stock if they are successful,” adds Pierce.
And yet, the analyst is not so thrilled by Lucid’s troubling financial situation and “persistent balance sheet concerns.” In addition, company management lowered FY 2025 production guidance for a second time, blaming supply chain difficulties. Though near-term liquidity is not an issue, Pierce ultimately concludes that LCID has more to prove before it earns a Buy rating.
“We still see low visibility on LCID’s path to sustainable positive earnings,” emphasizes Pierce, who is keeping his Hold (i.e., Neutral) rating on the stock in place. (To watch Chris Pierce’s track record, click here)
Pierce’s stance reflects the broader Wall Street view. Among 10 analysts tracked by TipRanks, 8 rate LCID shares a Hold, while 2 suggest a Sell. The average 12-month price target of $18 implies limited upside from current levels. (See LCID stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.