Written by Cláudio Afonso | LinkedIn | X
Benchmark analyst Mickey Legg reiterated a $5.00 price target on the EV maker Lucid in a research note on Friday, citing new momentum in market share gains over Elon Musk’s impact on Tesla’s brand image but also potential upside from tech licensing.
Despite a slight miss on first-quarter vehicle deliveries the analyst also reaffirmed a Buy rating on the stock.
Lucid said earlier this week it delivered 3,109 vehicles for the first quarter, just under Benchmark’s forecast of 3,212 units. Production totaled 2,212 vehicles, with more than 600 units currently in transit for assembly at the company’s Saudi Arabian facility.
“LCID reported 1Q25 deliveries yesterday of 3,109 vehicles, in-line with consensus of 3k and slightly below our estimate of 3,212 vehicles,” Legg wrote.
The California-based manufacturer guided first-quarter revenue of between $232 million and $236 million, largely matching Benchmark’s estimate of $233 million but falling short of the $246 million consensus compiled by FactSet.
“Notably, management was quoted that 50% of orders in the last 2 months are from former Tesla owners,” Legg added, highlighting potential share gains in a competitive U.S. EV market.
Lucid shares closed at $2.32 on Thursday. Benchmark’s $5.00 target implies an upside potential of 115% from that level. As of the time of writing, the stock is falling 6% amid an overall market crash.
“The recent decline in Tesla sales in certain markets is an opportunity for LCID to take market share and grow consumer awareness, in our opinion,” Legg wrote. “Given LCID manufactures its vehicles in the US, we also believe the recent tariff announcements have a somewhat limited impact on LCID compared to more traditional auto OEMs.”
Benchmark sees 2025 as a critical year for Lucid, with the launch of its Gravity SUV providing a key catalyst. “We see 2025 as an opportunity for Lucid to increase market share alongside the ramp of its Gravity SUV sales, with potential additional upside subject to licensing or partnership agreements,” Legg wrote. “Maintain Buy & $5 price target.”
Interim CEO Marc Winterhoff said last week that customer deliveries of the Gravity SUV in the U.S. would begin “by the end of April.”
Lucid earlier this week announced plans to raise $1 billion through a private offering of convertible senior notes due 2030.
In recent quarters, the company has also leaned on its strategic backers for capital. In August, Lucid said Saudi Arabia’s Public Investment Fund, its largest shareholder, would invest $1.5 billion in cash. That was followed by a public offering of about 262.5 million shares in October.
March was Lucid’s strongest U.S. sales month on record, with 942 vehicles sold, according to Motor Intelligence estimates. First-quarter U.S. sales reached approximately 2,412 units.
