Lucid shares plunged on Monday, the first trading session after the EV maker disclosed another $400 million draw on its credit line from Saudi Arabia’s Public Investment Fund (PIF), as RBC Capital Markets slashed its price target on the stock by 42.9%.
The stock was down 9.4% at $3.43 at 2:28 p.m. in New York, after touching $3.41, putting it on course for its lowest close since the company went public in 2021.
That would break the previous low set on Friday, when the shares closed at $3.79.
The decline wiped about $140 million off Lucid’s market value, which stood at approximately $1.35 billion based on its 394.07 million shares outstanding.
The broader market was little changed, with the Nasdaq Composite down 0.5% and the S&P 500 down 0.1%, while Rivian fell 2.7% and Tesla 0.9%.
The Filing
Lucid disclosed the draw in a regulatory filing with the US Securities and Exchange Commission, minutes after the market closed.
The company said it drew $400 million on October 6 from the delayed draw term loan provided by Ayar Third Investment Company, a PIF affiliate.
That left about $2.1 billion outstanding under the facility and about $400 million of remaining capacity, Lucid said.
It was the fourth draw this year and the second of $400 million in six weeks, after $500 million on April 1, $800 million on July 6 and $400 million on August 24.
Monday’s drop extended the stock’s slide to 17.6% over five sessions and left it down about 67% this year and 84% from a year earlier.
RBC’s Cut
RBC Capital Markets Analyst Tom Narayan kept his Sector Perform rating on Lucid while lowering his target by 42.9%, the firm’s fifth cut this year.
The new target is about 16% above Monday’s afternoon price and 5.5% above Friday’s close.
Narayan cut his 2027 revenue forecast for Lucid to $2.8 billion and lowered the sales multiple he applies to the company to 0.5 times from 0.7 times, citing disappointing Gravity sales, according to a summary of the note published by Benzinga.
He forecast third-quarter revenue of $351 million, about 16% below the consensus of $418.3 million, and expects weaker gross margins as lower output spreads fixed costs over fewer vehicles, according to Benzinga.
Narayan models 15,600 deliveries for 2026, below a consensus of 17,100.
Lucid delivered 10,852 vehicles in the first nine months, so his forecast implies about 4,750 in the fourth quarter, up roughly 25% from the 3,806 it handed over in the third, by EV‘s calculation.
Lucid’s third-quarter deliveries fell 6.7% from a year earlier, and production dropped 24.1% to 2,954 vehicles after the company eliminated a shift at its Arizona plant in June.
The delivery figure was about 19% below a Visible Alpha consensus of 4,687, as Lucid sold down inventory, with deliveries exceeding production by 852 vehicles in the quarter.
Lucid has given no delivery or production target for 2026 since withdrawing its 25,000 to 27,000 range in May, and has tied the quarter to an operating reset targeting $1.4 billion in cash flow improvements this year.
Narayan sees autonomous-driving software as a longer-term opportunity with no meaningful near-term contribution, Benzinga reported.
3 Years of Sector Perform
Narayan has rated Lucid Sector Perform since initiating coverage on September 8, 2023, with a $6 target, equal to $60 after Lucid’s 1-for-10 reverse stock split in 2025.
At the time, he said Lucid’s technology was “12%-23% more efficient than its nearest peer” Tesla, but that its “brand awareness is low.”
He halved the target to $3 in March 2024, saying licensing talks with other carmakers had “largely been reactive,” and reiterated it that September, writing that “the greatest upside to shares remains its ability to license this tech.”
In November 2024, he cut it to $2, citing the “lack of evidence of new deals being struck.”
That target, equal to $20 after the reverse split took effect on September 2, 2025, was cut to $14 in January, $10 in February after weaker-than-expected 2026 production guidance, $8 in April and $7 in July.
After Lucid’s March investor day, Narayan said he was “most concerned about the company’s liquidity situation.”
Monday’s $4 target is 80% below where RBC started the year.
Where the Street Stands
Baird’s Ben Kallo kept a Neutral rating and a $6 target after the third-quarter delivery report on October 6, while StoneX reiterated a Hold rating without a target.
The PIF, Lucid’s largest shareholder, has lent $2.1 billion through the loan since April, while the stake of Saudi Prince Alwaleed bin Talal recently swung to a paper loss.
Lucid will report third-quarter results on November 9.
