EV manufacturer Lucid Group (NASDAQ:LCID) was trending lower at the time of writing after Needham analyst Chris Pierce downgraded the stock from Buy to Hold. Pierce is concerned about the low possibility of Lucid’s EV efficiency technology being adopted by the mass market.
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The analyst cited these doubts after looking into the company’s partnership agreement with Aston Martin. He commented, “At $20k to $30k per vehicle, we struggle to see the mass market, lower price-point OEMs adopting LCID’s technology.”
While Pierce is optimistic about Lucid’s Gravity SUV, he does not expect it to generate immediate investor enthusiasm, as its production is scheduled for late next year.
Pierce maintained a Buy for Rivian Automotive (NASDAQ:RIVN), citing strong demand for its cars. The analyst commented, “Our latest round of used-EV price checks continues to be supportive of strong RIVN demand in contrast to excess supply across the broader industry, which is lowering near-term investor enthusiasm for EV adoption.”
Rivian is now Needham’s only Buy-rated stock in the EV Original Equipment Manufacturers (OEM) sector, with uncertainties surrounding demand and production for other companies, including Tesla (NASDAQ:TSLA).
Is Lucid a Buy, Sell, or Hold?
Analysts remain sidelined about LCID stock, with a Hold consensus rating based on six Holds and one Buy and Sell each. Even as LCID stock has slid by more than 30% year-to-date, the average LCID price target of $5.21 implies 24.8% upside potential at current levels.
