Written by Cláudio Afonso | LinkedIn | X
Following the second quarter financial results and the announcement of another $1.5 billion investment from Lucid‘s largest shareholder, Cantor Fitzgerald analyst Andres Sheppard upgraded the company’s stock from Underweight to Neutral.
The analyst has a price target of $4.00 indicating an implied upside potential of 33% based on the last closing price at $3.00 per share.
In a new research note, the analyst says the firm sees this capital raise as “significant since it extends Lucid’s cash runway into 4Q25 (from 2Q25 previously)”.
Sheppard added that it “helps to solidify PIF’s longer-term commitment” to the company.
Citing Lucid’s management, the analyst noted that the EV maker “will use the net proceeds for general corporate purposes, which may include, “capital expenditures and working capital”.
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Lucid Motors has reiterated its annual production guidance of 9,000 vehicles as it prepares to start producing its second model, the Gravity SUV, later this year.
Last week, Lucid’s chief executive announced that the first pre-production units of the Gravity have rolled off the production line.
With 1,728 vehicles produced in the first quarter and 2,110 vehicles in the second quarter, the California based EV maker expects to produce 5,162 vehicles in the second half of the year.
The company led by Peter Rawlinson revealed on Monday that its largest shareholder, which owns about 60% of the EV maker, will inject another $1.5 billion in cash.
In March, Saudi Arabia’s Public Investment Fund (PIF) had agreed to invest $1 billion.
Lucid Motors reported its earnings results from the second quarter of the year with revenue beating analysts estimates: $200.6 million versus $186.2 million.
The California-based company delivered 2,394 vehicles in the second quarter of the year and produced 2,110 units.
Last Friday, Rawlinson shared a comparative chart showcasing the miles per gallon of gasoline-equivalent (MPGe) results of the newly launched 2025 version of the Lucid Air sedan against three key competitors: Tesla Model S, Mercedes EQS and Porsche Taycan.
The executive said, if Tesla maintains the progression rate, it will need 7 years to reach the same MPGe of the 2025 Lucid Air, 146 miles.
Written by Cláudio Afonso | LinkedIn | X
