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Lucid Group
(NASDAQ:LCID)
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Rating:42Neutral
Price Target:
$3.50
▼(-33.46% Downside)
Action:Reiterated
Date:10/13/26
The score is primarily held down by very weak financial performance—deeply negative margins, large net losses, and heavy ongoing free-cash-flow burn with rising leverage and a shrinking equity cushion. Technicals reinforce the risk with a strong downtrend (below key moving averages and negative MACD), despite oversold readings. The earnings call provides some partial support via strengthened liquidity and a defined $1.4B improvement plan, but results still show severe cash consumption and continued operational uncertainty.
Positive Factors
Improving vehicle deliveries and revenue
Higher deliveries and revenue indicate improving customer uptake of Lucid’s vehicles and better utilization of its commercial platform. If this growth persists, greater scale can support stronger fixed-cost absorption, broaden market presence, and improve the foundation for future operating leverage.
Negative Factors
Severe cash burn and negative profitability
Persistent, large cash outflows leave Lucid dependent on external funding while the business remains far from profitability. This limits financial flexibility, makes execution of new programs more difficult, and increases the importance of achieving material improvements in production economics and operating costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving vehicle deliveries and revenue
Higher deliveries and revenue indicate improving customer uptake of Lucid’s vehicles and better utilization of its commercial platform. If this growth persists, greater scale can support stronger fixed-cost absorption, broaden market presence, and improve the foundation for future operating leverage.
Read all positive factors
Lucid Group Key Performance Indicators (KPIs)
Any
Vehicle Deliveries
Tracks the number of vehicles delivered to customers, indicating production efficiency, demand fulfillment, and revenue generation potential.
Tracks the number of vehicles delivered to customers, indicating production efficiency, demand fulfillment, and revenue generation potential.
Data provided by:
The Fly
The FlyLucid Group (LCID) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.49B
Dividend YieldN/A
Average Volume (3M)10.28M
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth66.54%
EPS Growth-22.69%
CountryUS
Employees9,000
SectorGeneral
Sector StrengthN/A
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-13.69
Shares Outstanding394,070,200
10 Day Avg. Volume9,211,464
30 Day Avg. Volume10,279,134
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)4.59
Price to Sales (P/S)2.43
P/FCF Ratio-0.86
Enterprise Value/Market Cap5.57
Enterprise Value/Revenue5.38
Enterprise Value/Gross Profit-5.57
Enterprise Value/Ebitda-2.44
Forecast
1Y Price Target
$7.69Price Target Upside46.15% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)-10.05
Revenue Forecast (FY)$1.64B
Lucid Group Business Overview & Revenue Model
Company Description
Operating at the intersection of technology and the automotive industry, Lucid Group, Inc. specializes in the development of electric vehicle (EV) technologies. The company is responsible for the complete cycle of designing, engineering, and manuf...
How the Company Makes Money
Lucid primarily makes money by selling battery-electric vehicles to retail and fleet customers, recognizing automotive sales revenue when vehicles are delivered and control transfers to the customer. A related revenue stream comes from vehicle-rel...
Lucid Group Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Neutral
The call balanced clear positive operational and strategic steps (strengthened liquidity position, a defined $1.4B improvement plan, sequential revenue and deliveries growth, robotaxi partnership momentum, and concrete quality/service initiatives) against material near‑term financial and operational challenges (very large negative gross margins and EBITDA, a $300M inventory impairment, substantial free cash outflow, production curtailment, and guidance uncertainty). Management presented specific remediation actions and a path to extend runway into 2027, but the company remains in a turnaround phase with meaningful execution risk.Positive Updates
Liquidity and Short-Term Runway
Total liquidity of ~$3.0 billion as of June 30, 2026 (including ~$800 million cash and investments and ~$2.2 billion available borrowing capacity). Post-quarter draw of an additional $800 million under the Delayed Draw Term Loan Facility; management expects liquidity to extend well into 2027.
Negative Updates
Severe Profitability and Cash‑Burn
Q2 gross margin of -105% (was -110% in prior quarter); adjusted EBITDA of -$901 million (worse than -$781 million in Q1). Free cash flow of -$1.476 billion in Q2, reflecting substantial working capital tied up and ongoing cash consumption despite identified savings.
Read all updates
Q2-2026 Updates
Positive
Negative
Liquidity and Short-Term Runway
Total liquidity of ~$3.0 billion as of June 30, 2026 (including ~$800 million cash and investments and ~$2.2 billion available borrowing capacity). Post-quarter draw of an additional $800 million under the Delayed Draw Term Loan Facility; management expects liquidity to extend well into 2027.
Read all positive updates
Company Guidance
The company did not give formal forward guidance but offered clear directional metrics: as of June 30 Lucid reported $3.0 billion of total liquidity (≈$800M cash & investments + $2.2B available borrowing capacity) and drew an additional $800M post‑quarter, which management expects—together with an identified ~$1.4 billion of 2026 cash‑flow improvements—to extend runway well into 2027; operationally Q2 production was 4,774 vehicles (down 13% vs Q1’s 5,500, up 24% YoY), Q2 deliveries were 3,953 (+28% vs Q1’s 3,093, +19% YoY), revenue ≈$405M (+44% sequential, +56% YoY) with ASP +3.7% q/q and $25M of regulatory credit revenue, gross margin -105% (including a $300M inventory impairment that reduced margin by ~74 ppts), adjusted EBITDA -$901M, and free cash flow -$1.476B; near‑term operating actions include a U.S. workforce reduction and single‑shift at AMP‑1 (≈$115M projected annualized savings), expectation that Q3/Q4 production will be below Q2 while second‑half deliveries should grow seasonally (but more moderately than last year), robotaxi validation with ~100 engineering vehicles (regular production in Q4 and launch late‑2026), AMP‑2 ready for production in early 2027 with Midsize production in H2 2027, and service investments to add ~35% more technicians, >20% more mobile capacity and target >30% shorter wait times; a Q3 (November) liquidity and $1.4B progress update and year‑end 2027 guidance are planned.Lucid Group Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
38
Negative
Cash Flow
10
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.55B | 1.35B | 807.83M | 595.27M | 608.18M | 27.11M |
| Gross Profit | -1.49B | -1.26B | -923.11M | -1.34B | -1.04B | -127.79M |
| EBITDA | -3.41B | -2.15B | -2.38B | -2.57B | -1.09B | -2.52B |
| Net Income | -4.08B | -2.70B | -2.71B | -2.83B | -1.30B | -2.58B |
Balance Sheet | ||||||
| Total Assets | 7.70B | 8.39B | 9.65B | 8.51B | 7.88B | 7.88B |
| Cash, Cash Equivalents and Short-Term Investments | 761.31M | 997.83M | 4.03B | 3.86B | 3.91B | 6.26B |
| Total Debt | 3.36B | 860.53M | 2.48B | 2.43B | 2.35B | 2.21B |
| Total Liabilities | 5.85B | 7.67B | 5.78B | 3.66B | 3.53B | 3.97B |
| Stockholders Equity | 1.85B | 717.29M | 3.87B | 4.85B | 4.35B | 3.91B |
Cash Flow | ||||||
| Free Cash Flow | -6.56B | -3.83B | -2.90B | -3.40B | -3.30B | -1.48B |
| Operating Cash Flow | -5.28B | -2.96B | -2.02B | -2.49B | -2.23B | -1.06B |
| Investing Cash Flow | 1.64B | 1.48B | -1.29B | -946.98M | -3.68B | -420.69M |
| Financing Cash Flow | 2.37B | 915.16M | 3.55B | 3.07B | 1.35B | 7.14B |
Lucid Group Technical Analysis
Negative
5.26
Price Trends
5.06
Negative
5.53
Negative
7.46
Negative
Market Momentum
-0.28
Negative
32.90
Neutral
15.21
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCID, the sentiment is Negative. The current price of 5.26 is above the 20-day moving average (MA) of 4.09, above the 50-day MA of 5.06, and below the 200-day MA of 7.46, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 32.90 is Neutral, neither overbought nor oversold. The STOCH value of 15.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LCID.
Lucid Group Risk Analysis
Lucid Group disclosed 98 risk factors in its most recent earnings report. Lucid Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lucid Group Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | $9.36B | -20.27 | -10.72% | ― | 28.99% | 24.33% | |
47 Neutral | $20.21B | -5.41 | -67.49% | ― | 14.21% | 20.20% | |
46 Neutral | $7.16B | -1.72 | 61.71% | ― | 74.15% | -29.12% | |
45 Neutral | $8.66B | -12.26 | -112.44% | ― | 69.72% | 82.72% | |
45 Neutral | $11.68B | -16.77 | -6.52% | ― | -24.71% | -158.82% | |
42 Neutral | $1.49B | -0.28 | -254.84% | ― | 66.54% | -22.69% |
* General Sector Average
LCID
Lucid Group
3.44
-17.96
-83.94%
NIO
Nio
3.47
-3.71
-51.67%
LI
Li Auto
11.40
-11.73
-50.71%
XPEV
XPeng, Inc. ADR
9.66
-12.07
-55.55%
VFS
VinFast Auto
3.05
-0.19
-5.86%
RIVN
Rivian Automotive
13.54
0.48
3.68%
Lucid Group Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Lucid Group Expands PIF-Backed Term Loan Financing
Neutral
Oct 9, 2026
On October 6, 2026, Lucid Group, Inc. drew $400 million under its Delayed Draw Term Loan facilities from Ayar Third Investment Company, an affiliate of the Public Investment Fund. This transaction increased the aggregate principal amount outstandi...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Lucid Group Announces CFO Transition and Advisory Role
Neutral
Sep 11, 2026
On September 4, 2026, Lucid Group, Inc. entered into a Transition Agreement with former Chief Financial Officer Taoufiq Boussaid, under which he will serve as a Senior Advisor through December 31, 2026, receiving a monthly salary of $10,000, benef...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
Lucid Group Strengthens Leadership Amid Strategic North America Focus
Positive
Aug 28, 2026
On August 24, 2026, Lucid Group drew an additional $400 million under its Delayed Draw Term Loan facilities with Ayar Third Investment Company, bringing total borrowings to $1.7 billion and leaving about $800 million in remaining capacity, bolster...
Private Placements and FinancingRegulatory Filings and Compliance
Lucid Group Registers Preferred and Class A Shares
Neutral
Aug 12, 2026
On August 12, 2026, Lucid Group Inc. filed a prospectus supplement with the SEC to register for resale 55,000 shares of Series C Convertible Preferred Stock, 51,651,489 Class A shares issuable upon conversion as of June 30, 2026, and 24,038,462 Cl...
Business Operations and StrategyFinancial Disclosures
Lucid Group Refutes Bankruptcy Rumors, Affirms Liquidity
Positive
Jul 15, 2026
Lucid Group, Inc. stated that recent rumors about its financial distress and board-level consideration of bankruptcy are completely false. The company said it has sufficient liquidity to fund operations well into next year, as reflected in its lat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.