Electric vehicle (EV) maker Lucid Group (LCID) shares came under pressure after CFRA analyst Garrett Nelson downgraded the stock from Sell to Strong Sell and maintained a price target of $10, implying a potential 55% downside from current levels. Nelson said the downgrade follows disappointing Q3 delivery and production results, which came in well below his estimates.
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Analyst Flags Production Miss and Rising Losses
Nelson said Lucid delivered 4,078 vehicles in Q3, up 47% year over year but far short of CFRA’s 6,100 estimate. Production totaled 3,891 units, missing the 6,200 forecast. Although the company maintained its full-year guidance of 18,000–20,000 units, the analyst now expects Lucid to fall short of that goal.
He added that Lucid would need to build more than 8,000 vehicles in Q4 to reach even the low end of its target, calling it “a tough task.” Nelson also cut his EPS estimates to –$11.15 for 2025 (from –$10.50) and –$11.50 for 2026 (from –$11.00), citing weak volumes and continued losses.
Nelson acknowledged that while production growth improved, it still missed expectations, especially since the end of the federal EV tax credit on September 30 should have boosted demand. He warned that Lucid’s recent rally, following a 1-for-10 reverse stock split, does little to offset its ongoing challenges.
What Is the Price Target for LCID Stock?
Currently, Wall Street has a Hold consensus rating on Lucid Group stock based on eight Holds, two Buys, and one Sell recommendation. The average LCID stock price target of $30.90 indicates 39.63% upside potential from current levels.
LCID stock is down 36% year-to-date.
