Overview
- Morgan Stanley analyst Adam Jonas kept an Underweight rating on Lucid and reduced his price target to $5, citing operational setbacks and weak results.
- Lucid reported first-quarter revenue of $282.47 million versus $440.43 million expected, missing Wall Street forecasts by a wide margin.
- A 29-day stop-sale tied to faulty second-row seats in the Gravity SUV left Lucid producing 5,500 vehicles but delivering 3,093 and triggered more than $200 million in revenue impairment, which also led the company to pull its 2026 production guidance.
- The company said it has about $3.2 billion in liquidity, yet it continues to sell cars below production cost and burned more than $1.4 billion in cash in the quarter.
- Shares sit near 52-week lows as traders weigh a consensus Hold rating with a roughly $13 average target, the incoming CEO Silvio Napoli’s operational review, and a plan to launch a sub-$50,000 midsize EV in 2027.