Lucid Group resumed with a Neutral at Citi

Citi resumed coverage of Lucid Group with a Neutral rating and $8 price target. The firm remains constructive on Lucid’s leading technology position, anchored by a miles/kWh advantage estimated to be worth $4-5k/vehicle. With the cash/liquidity runway having been extended, the focus shifts back to near-term demand for the Lucid Air and the company’s gross margin progression, which were challenged in Q1, Citi adds. The ideal outcome would see improvement on both fronts, followed by the unveiling of the Gravity SUV. Given the stock’s relative valuation, recent EV price discounts and the time gap until Gravity SOP, a bullish stance on the stock requires some conviction on the H2 Air volume ramp and margin progression, the firm says.