Written by Cláudio Afonso | LinkedIn | X
One day before EV maker Lucid Motors reports its fourth-quarter financial results, Redburn-Atlantic analyst Tobias Beith slashed his price target by over 67%, citing concerns about the company’s need to secure “significant additional capital.”
The analyst downgraded the stock’s rating from Neutral to Sell and reduced the price target to $1.13 from $3.50. Lucid shares plunged 7.5% on Friday as shareholders wait for the first customer deliveries of the company’s second model, the Gravity SUV.
In a new research note, Beith praised the company’s battery tech saying that “it may be challenging” for Lucid‘s rivals to “replicate the efficiency of its vehicles before 2030.” However, Beith warns that a “significant additional capital will eventually be required.”
The updated price target implies a downside of 63% based on Friday’s closing price of $3.06.
The analyst warned that the resultant cost advantage “requires volumes to build sharply once the mid-sized platform is launched in 2H26E [second half of 2026 – estimated] (December Y/E),” adding later that “cash outflows are larger, for longer, than the market expects.”
The company delivered 3,099 units in the fourth quarter of 2024, bringing its annual total to 10,241 vehicles. Lucid stated that its fourth-quarter deliveries included “approximately 7%” [about 217 vehicles] that were “subject to operating lease accounting.”
“The cumulative free cash flow ‘gap’ between us and Consensus over FY25-30E is c$11bn. If we are correct, it suggests significant additional capital will eventually be required. Our new target price is $1.13 (from $3.50),” Redburn-Atlantic’s analyst added.
D.E. Shaw
Hedge fund D.E. Shaw added 14.83 million shares in Lucid Motors late last year, closing 2024 with more than 24.4 million shares, a stake valued at nearly $74 million as of year-end.
D.E. Shaw, one of the hedge fund industry’s biggest players, continued to expand its holdings throughout the year, with its latest accumulation making it one of the largest institutional investors in Lucid.
BlackRock
As recently reported by EV, BlackRock — the world’s largest asset manager — added 5.4 million shares in Lucid in the fourth quarter of 2024. The firm increased its stake in the company by 12.7%.
BlackRock ended the year holding more than 48.5 million Lucid shares, valued at nearly $147 million, according to its latest 13F filing.
