Cantor Fitzgerald slashed its price target on electric vehicle maker Lucid Motors on Thursday, the same day the stock hit a fresh all-time low for the second consecutive session following the company’s 1-for-10 reverse stock split.
In a new research note, Cantor analyst Andres Sheppard cut the firm’s target by 33% to $20 from $30, or $3.00 before the split first announced in July.
“We continue to believe that Lucid vehicles are able to provide higher battery efficiency, longer battery range, better performance, more space, and faster charging (relative to other EVs),” Sheppard wrote early in the note.
Discussing the company’s second model, the Lucid Gravity SUV, Sheppard said it is expected to play a key role in demand growth.
“As it continues to ramp up, we expect the Gravity will help materially boost customer demand (management expects the Gravity to have ~6x the TAM [total addressable market] of the Lucid Air Sedan),” he wrote.
He recalled the management’s comments last month over orders showing positive momentum.
“On the call, Lucid disclosed that Gravity daily orders have ‘nearly doubled’ since display,” Sheppard said, noting that Cantor forecasts 6,064 Gravity deliveries this year, scaling to 10,248 units in 2026.
The analyst also highlighted Lucid’s future product pipeline.
“Additionally, we also continue to believe the launch of the midsize platform (2H26E) will be a material catalyst that should help the company scale and improve margins further, and we are encouraged by the company’s plan to enter the robotaxi market in late 2026 via Uber, which we also see as a material catalyst,” he wrote.
Lucid said Thursday it closed a $300 million investment from Uber, finalizing funding tied to the companies’ partnership on a robotaxi program.
Still, Sheppard said near-term challenges are weighing on the outlook.
“However, we are discouraged in the near-term, by the company’s FY25 revised production guidance (in-line with our expectations) and by the persistent high negative gross margins,” he wrote.
In early August, Lucid cut its 2025 production target to 18,000–20,000 vehicles from “approximately 20,000.”
“Overall, we remain neutral due to persistent high negative gross margin, additional capital needs, supply constraints, a worsening macro environment, and tariff uncertainty,” Sheppard wrote.
Lucid shares dropped to as low as $15.25 on Thursday before recovering to close at $16.16 — equivalent to $1.616 pre-split.
“Our Neutral rating is unchanged, and we are increasing/adjusting our PT to $20 (from prior $3), to account for the reverse stock split.”
He added: “We arrive at our $20 PT via a bottoms-up 10-year DCF [Discounted Cash Flow]. We assume an 11% WACC [Weighted Average Cost of Capital] and a terminal value with a 2% long-term growth rate.”
The stock has fallen more than 54% in less than two months amid disappointing second-quarter results, the reverse split plans announced in July, and persistent supply bottlenecks affecting some Gravity trims.
In mid-July, Lucid unveiled agreements with Uber and Nuro to develop what it called a “next-generation premium global robotaxi program.”
