Written by Cláudio Afonso | LinkedIn | X
Bank of America (BofA) increased on Monday its price target for Lucid‘s stock from $3 to $3.55, maintaining a Neutral rating on the electric vehicle manufacturer’s shares. Based on the previous closing price, the new price target implies an upside potential of about 1.40%.
In a new research note, the bank revealed it is lowering its U.S. sales and production estimates due to recent macroeconomic developments.
Lucid delivered 2,394 vehicles in the second quarter of the year while producing 2,110 units, beating expectations from Wall Street analysts.
The EV maker will publish its second quarter financial results on August 5 after the market closes with a conference call with the management following.
Ahead of the earnings results, BofA predicts the sluggish start to the year will persist into the second quarter, aligning with recent commentary from the management.
In early April, when Lucid announced the delivery of 1,967 vehicles in the first quarter— the analyst cut the price target to $3.50 from $4.50 while keeping a Neutral rating on the shares.
BofA foresees near-term pressure on supplier results, attributing this to continued light production schedules across the industry.
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Last week, a Cantor Fitzgerald analyst reiterated its price target of $4 on the company’s stock remaining cautious about the EV maker’s profitability outlook.
Additionally, Lucid’s capital requirements remain a pressing issue. The company is funded only until the second quarter of 2025, suggesting that additional capital raises will be necessary to sustain operations and continue its growth trajectory.
A few hours after announcing that the 2025 Lucid Air has become the most efficient electric vehicle in the world, Lucid‘s co-founder and CEO Peter Rawlinson attended Fortune’s Brainstorm Tech
Rawlinson commented on the reported financial support from Elon Musk to former President Donald Trump calling it “another salient example of his level of distraction”.
Written by Cláudio Afonso | LinkedIn | X
