Lucid (NASDAQ:LCID) stock gained more than 5% on Thursday after the company lowered prices on its Lucid Air electric vehicle (EV) for the third time in the past seven months. This strategic move mirrors recent initiatives undertaken by other EV manufacturers in a bid to boost demand in the competitive EV market.
Yesterday, LCID announced price cuts ranging from 1% to 10% on its Lucid Air EV lineup. In addition, the company offers a $1,000 customer incentive for charging equipment purchases and provides free scheduled maintenance for two years or up to 24,000 miles to new buyers.
EV Price-Cutting Trend
It is worth mentioning that last week, Rivian (RIVN) reduced the price of its vehicles by $3,100, or about 4%. Moreover, EV giant Tesla (TSLA) has implemented several price cuts over the past year across different markets.
The ongoing trend of price cuts within the EV industry remains a key concern for investors due to the potential impact on the profit margins of the companies. Furthermore, these cuts pose challenges for EV startups, including LCID and RIVN, which are yet to become profitable.
What Is a Good Price for LCID Stock?
Currently, Wall Street analysts are sidelined on Lucid stock. It has a Hold consensus rating based on seven Holds and two Sells. The average LCID stock price target of $5 implies a 37.74% upside potential. Shares of the company have declined 65.9% over the past year.
