RBC Capital Markets lowered its price target on Lucid, extending a steady retreat by the bank’s analyst on a stock that has lost most of its value this year.
Analyst Tom Narayan’s reduction marks at least the fourth cut to RBC’s Lucid target since January, when the figure stood at $20 before a sequence of downward revisions tracked the shares lower through the first half.
RBC Capital cut its price target on the Saudi-backed EV maker to $7.00 from $8.00 while keeping a Sector Perform rating.
The move lands against a share price that closed at $5.55 on Friday, down 4.8% on the day, leaving RBC’s new target implying upside from current levels.
The RBC Trajectory
Narayan has cut his Lucid target in stages through this year, each reduction tied to weakening production, thin software revenue or the company’s cash position.
RBC cut the target to $14 from $20 in mid-January, matching a move by Baird days earlier, after the shares hit an all-time low at the close of 2025 amid a CEO search and persistent software problems.
The bank lowered it again to $10 from $14 in late February, after Lucid reported a record quarterly operating loss and 2026 production guidance well below expectations.
In the note, Narayan expressed disappointment with the guidance and the restatement that cut full-year 2025 output to 17,840 units while allowing that “unit economics appear to be improving.”
Narayan then trimmed the target to $8 from $10 in April, part of a broader auto-sector note that also lowered Tesla and Ford ahead of first-quarter earnings, citing macroeconomic pressure tied to Middle East tensions.
The latest reduction lands in a similar setup, with the same three automakers again reporting within weeks of one another, Tesla on July 22, Ford on July 28 and Lucid on August 4.
Narayan holds Tesla at Outperform with a $500 target lifted this month while keeping Lucid at the bottom of his coverage.
The latest reduction to $7 continues that pattern, keeping RBC among the more cautious voices on a stock where the analyst has never moved off Sector Perform.
The Liquidity Worry
The through-line in Narayan’s recent notes has been Lucid‘s cash position, a concern that has only sharpened as the year has progressed.
Writing after the company’s March investor day, Narayan said RBC was “most concerned about the company’s liquidity situation,” adding that Lucid would likely need financing soon and that there could be limits on how much it can raise from its partners.
That worry has proven well-placed, with Lucid drawing $800 million from its Saudi-backed delayed-draw term loan on July 6, cutting about 18% of its workforce and eliminating its chief operating officer role, and naming a new finance chief this month under CEO Silvio Napoli, who took over on June 1.
The underlying financials remain daunting, with the company having reported fourth-quarter revenue of $522.7 million, up 123% year-over-year, against an adjusted loss of $3.08 a share that missed the $2.68 consensus, and a gross margin still deeply negative at minus 81%.
Lucid has accumulated roughly $14.8 billion in losses since 2019, a figure that frames why the pace of the company’s cash burn has become the central question for analysts.
Narayan has paired the caution with a recurring view that Lucid‘s powertrain technology is a genuine asset, having written previously that the greatest upside to the shares remains its ability to license that technology to other carmakers.
A Year of Wall Street Cuts
RBC’s reduction is the latest in a run of downgrades that EV has tracked through the spring and summer, as one firm after another marked down the stock.
Following Lucid‘s first-quarter results in May, four firms cut their targets at once, led by Morgan Stanley’s Adam Jonas.
Jonas reiterated an Underweight rating and halved his target to $5 from $10, citing the Gravity stop-sale, the withdrawal of production guidance and heavy cash burn.
TD Cowen’s Itay Michaeli lowered his target to $7 from $10 with a Hold rating in the same wave, having already nearly halved it to $10 from $19 in mid-April, while Baird’s Ben Kallo cut his to $6 and held a Neutral rating he has kept since 2023.
Kallo’s reduction was notable for its timing, arriving a day after Lucid had announced a new permanent chief executive, an expanded Uber purchase agreement and fresh Saudi funding, a combination that in an earlier era might have lifted the shares rather than drawn a target cut.
Citi’s Michael Ward trimmed his target to $14 from $17 but kept a Buy rating, one of the few bullish holdouts, arguing the long-term case rests on 2027 catalysts including Saudi production and lower capital spending.
The cuts followed three firms lowering targets after the fourth-quarter report in February, when Cantor Fitzgerald called the 2026 production guidance “mildly disappointing” and stripped modeled Aston Martin licensing revenue from its estimates.
More recently, the tone has steadied even as the targets stay low, with Baird holding its target at $6 after the second-quarter delivery miss and arguing the leadership overhaul matters more than the quarter’s numbers.
Cantor kept a Neutral rating and $8 target, pointing to milestones weighted toward late 2026 and 2027 rather than near-term volume.
Where the Stock Stands
Lucid shares have been among the weakest in the sector, and Friday’s close capped a rough stretch.
The stock ended the week at $5.55, down more than 74% from that high and about 98.6% below its split-adjusted 2021 peak.
The company’s market value has fallen to roughly $2.2 billion, a fraction of the level it commanded at listing, with Saudi Arabia’s Public Investment Fund holding a majority stake and Uber a passive position built through its robotaxi agreement.
The pressure has extended well beyond the share price, with Lucid cutting roughly 18% of its workforce last month, eliminating its chief operating officer role and naming Alexander De Bock as its new finance chief, the latest in a long run of senior departures.
Q4 Earnings
The next test comes with Lucid‘s second-quarter results, due August 4, when investors will look for progress on the Gravity ramp, the midsize platform and the cash burn that has driven much of the Street’s caution.
The company has already disclosed that it delivered 3,953 vehicles in the quarter, short of Wall Street estimates though up more than 20% year-over-year, leaving the financial detail and any updated guidance for the August report.
