Needham analyst Vikram Bagri reiterated a ‘Hold’ rating on Lucid Motors in a research note published Wednesday, warning that the electric vehicle maker’s “near-term execution challenges temper its long-term growth potential” following its second-quarter results.
Lucid shares were down more than 7% in early trading after the company reported a wider-than-expected loss and revenue miss for the quarter.
The EV maker posted a net loss of $855 million, or 28 cents per share, compared to a loss of $790 million, or 34 cents per share, a year earlier.
Revenue came in at $259.4 million, missing consensus estimates by approximately $24 million.
Bagri acknowledged that the recently launched Gravity SUV is showing “encouraging” demand trends. Interim CEO Marc Winterhoff said on the earnings call that the daily order rate for the vehicle “has nearly doubled” since display and test-drive units began arriving in showrooms.
Needham also pointed to the significance of Lucid’s new robotaxi deal with Uber and Nuro.
In mid-July, the company announced a six-year deal in which Uber will purchase at least 20,000 Gravity SUVs for its future robotaxi fleet, with vehicles to be equipped with Nuro’s autonomous driving technology and deployed in a “major US city” beginning in “late 2026.”
Uber is also investing $300 million in Lucid as part of the agreement.
“The recently announced Uber/Nuro partnership underscores the strength and scalability of LCID’s technology platform,” Bagri wrote.
Still, the analyst cautioned that Lucid’s operational and financial headwinds remain significant. “Production targets have been moderated, meaningful profitability remains elusive, and cash burn is elevated amid persistent margin pressures,” he said.
Lucid produced 3,863 vehicles and delivered 3,309 units in the second quarter.
While Needham maintained its $2.50 price target on the stock, the firm emphasized that “the path to sustainable earnings will require significant progress in scaling production, improving manufacturing efficiency, and exercising disciplined capital allocation.”
Needham had already reaffirmed its ‘Hold’ rating and $2.50 price target on Lucid following the company’s first-quarter results in early May, and reiterated both again in the new note published Wednesday.
The EV maker saw its vehicle registrations surge to a new nine month record in July, according to data published earlier this Tuesday by the country’s Federal Motor Transport Authority (KBA).
