Citi said on Wednesday in a new research note that it is back to covering one of the most discussed US EV startups.
The firm’s analyst Michael Ward initiated coverage on Lucid Motors with a Buy rating as the stock more than halved over the past twelve months.
The return to the EV stock comes as the company unveiled its first purpose-built fully autonomous concept Lunar, announced plans to produce 100,000 EVs in 2028, while signing its first dealership agreement in Europe — as first reported by EV last month.
Additionally, the brand backed by Saudi Arabia’s sovereign wealth fund announced it will roll out an Autonomy subscription next year — following Tesla and Rivian — and aims to reach positive cash flow by the late decade.
Across several interviews published over the last few days, the management has stressed that 2026 will be the last year of intensive capital investment as the transformation of its Saudi assembly plant into an EV manufacturing site is planned to be in the second half of 2026.
Citi’s Take
Citi set a $17.00 price target, citing upcoming product launches, European expansion, and strong liquidity as key factors behind the call.
Analyst Michael Ward sees the Saudi-backed EV maker at a positive inflection point.
Based on Tuesday’s close of $10.32, the target implies upside potential of 64.7%.
The firm last covered Lucid in April 2024, when it resumed coverage with a Neutral/High Risk rating and a price target of $2.90 — equivalent to approximately $29.00 after the company’s subsequent 1-for-10 reverse stock split.
Before that, analyst Itay Michaeli had initiated coverage in January 2022 with a Buy rating and a $57.00 price target, one of the highest on Wall Street at the time.
Same Price Target
The $17.00 target matches the price target Stifel reiterated on Monday — marking two firms independently arriving at the same valuation within days of Lucid‘s first-ever Investor Day.
Stifel analyst Stephen Gengaro reiterated a Hold rating and $17.00 price target after attending the New York event.
“At its Investor Day, Lucid highlighted significant updates across its Midsize platform, autonomous capabilities, and provided medium- to long-term outlook,” Gengaro wrote in his research note.
While both firms see the stock reaching $17.00, they differ on the rating as Citi rates Lucid a Buy, while Stifel maintains Hold.
Stock Context
Lucid shares were falling 1.4% to $10.18 in Wednesday morning trading.
The stock fell 6.7% on the day of the March 12 Investor Day as a broader market sell-off driven by surging oil prices overwhelmed the company’s product announcements.
The S&P 500 dropped 1.3% that session.
Lucid shares have fallen 58% over the past 12 months and trade more than 90% below the all-time high reached in November 2021.
Saudi Arabia’s Public Investment Fund holds a majority stake in the company and has invested more than $9 billion since 2018.
As of press time, Lucid‘s market capitalisation stood at approximately $3.4 billion.
On Monday morning, the company announced Wackenhut as its first European retail partner, confirming what EV first reported last month.
