Lucid Group capital raise a modest positive, says Morgan Stanley

Morgan Stanley analyst Adam Jonas keeps an Underweight rating on Lucid Group with a $3 price target after the company said is raising $1B from the issuance of convertible preferred shares in a private placement to Ayar. The firm the news as a mode positive, saying the material increase in the share price is due to current investor positioning, including extraordinarily high short interest relative to free float. Beyond the support of its largest shareholder, the company’s long term success will come down to its ability to produce vehicles for a cost lower than the selling price, the analyst tells investors in a research note.