Baird lowered its price target on Lucid Motors by 15% following the electric vehicle maker’s third-quarter financial report, despite fresh backing from Saudi Arabia’s sovereign wealth fund.
The firm cut its target to $21 from $26 while maintaining a Neutral rating on the stock. The new target represents an 1.4% downside from Wednesday’s close.
Lucid shares have declined 42% year-to-date.
The stock has plunged over 70% since Baird initiated coverage in September 2023 with a $7 price target — equivalent to $70 before the company’s recent 1-for-10 reverse stock split.
Baird’s price target on Lucid has fluctuated between $2 and $3 over the past year.
In August, analyst Ben Kallo trimmed the target to $2 from $3 after the company’s second-quarter results, noting that despite supply chain disruptions, Lucid had secured “enough supply to reach its full-year production targets.”
Kallo said the “true catalysts” for Lucid would be cost reductions toward vehicle profitability and a “potential tech licensing deal.”
Saudi Support
In Wednesday’s earnings report, Lucid announced that its main backer, Saudi Arabia’s Public Investment Fund, which holds approximately 60% of the company, agreed to increase its delayed draw term loan facility from $750 million to $2 billion.
“Lucid‘s total liquidity at quarter end would have been approximately $5.5 billion, giving effect to this DDTL increase, up from actual total liquidity of $4.2 billion,” the company said. The facility remains undrawn.
Robotaxi Push
Lucid announced in July entry into the robotaxi market through a partnership with Uber Technologies and Nuro.
The service will use Nuro’s autonomous driving technology and Lucid’s Gravity SUV, with operations set to begin in the San Francisco Bay Area by late 2026.
Lucid reported third-quarter revenue of $336.6 million, missing the Wall Street consensus of $379.1 million by more than $40 million.Retry
