RBC Capital Markets cut its price target on Lucid Motors by 30% to $14 from $20, marking the second Wall Street firm to lower expectations to that level in less than two weeks.
Analyst Tom Narayan maintained his Sector Perform rating on the stock.
Based on Tuesday’s closing price of $10.93, the new target implies approximately 28% upside potential.
The cut follows Baird analyst Ben Kallo’s decision last week to lower his price target to $14, despite Lucid meeting its lowered 2025 production guidance and unveiling a production-intent robotaxi at CES.
Stock Collapse
Lucid shares hit an all-time low of $10.46 on the final trading day of 2025 as investors weighed an ongoing CEO search, software problems affecting both models, and elevated cash burn rates.
Peter Rawlinson, the former CEO and CTO of the Saudi-backed EV maker, transitioned to an Advisory Role in late February.
The stock has plunged more than 64% over the past 12 months.
The company’s market capitalization has shrunk to $3.52 billion — a 98% collapse from the roughly $90 billion peak reached in late 2021, when Lucid briefly surpassed both Ford and General Motors in market value.
Analyst History
Narayan has grown increasingly cautious on Lucid over the past year.
In November 2024, citing a lack of evidence of licensing deals being struck, the analyst lowered his price target to $2 from $3 — equivalent to $20 and $30 after adjusting for the 1-for-10 reverse stock split executed last August.
The stock was trading at $2.14 at the time, equivalent to $21.40 post-split.
Software Turmoil
The price target cut comes days after interim CEO Marc Winterhoff disclosed that Lucid has fired “more than a handful” of software staff as the company scrambles to address persistent issues with its Air sedan and Gravity SUV.
“I basically replaced the whole software leadership team,” Winterhoff said at CES. “We’re working through this, and we’re actually very close.”
The executive said Lucid expects to resolve the Gravity’s software problems by the end of January or the end of March.
Production Progress
Lucid produced 18,378 vehicles in 2025, exceeding its revised annual guidance of 18,000 units.
Fourth-quarter production reached 8,412 units, up 116% from the third quarter as the ramp continued. Deliveries rose 31% sequentially to 5,345 vehicles.
The California-based EV maker had lowered its production target twice during the year — from 20,000 to a range of 18,000 to 20,000 in August, then to 18,000 in November.
Upcoming Catalysts
Lucid, led by interim CEO Winterhoff while the board searches for a permanent replacement, is preparing to unveil its third model and begin production at its Saudi Arabia plant later this year.
The company’s best trading day in years came last July when Uber selected Lucid’s Gravity SUV for a robotaxi program equipped with Nuro’s Level 4 autonomous driving software.
Uber also announced a $300 million investment in the EV maker, though Lucid simultaneously disclosed plans for a reverse stock split.
The stock erased early gains in the following sessions.
Last week, Lucid joined Nvidia and Nuro to unveil a production-intent version of its robotaxi at CES — marking the first showing of the vehicle beyond prototype form.
