Written by Cláudio Afonso | LinkedIn | X
Stifel analyst Stephen Gengaro published a new research note on Tuesday commenting on Lucid‘s second quarter financial results and raising the price target on the shares.
Gengaro raised it to by 33% to $4.00 (from $3.00) and maintained a Hold rating on the stock. Earlier today, Cantor Fitzgerald analyst has also increased the firm’s price target to $4.00 per share.
The analyst noted that the revenue surpassed Stifel’s forecasts with the EBITDA disappointing.
“Lucid’s 2Q24 revenue outpaced our estimate by 20.2%, but adjusted EBITDA landed below our forecasts. The company announced up to $1.5 billion in additional funding from the Saudi-backed PIF, which management believes provides sufficient liquidity through 4Q25,” Gengaro wrote.
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Lucid has reiterated late Monday its annual production guidance of 9,000 units for this year indicating that it expects to produce over 5,100 vehicles in the second half of the year.
The analyst says the cash burn rate is still a concern emphasizing the relevance of cutting costs wile increasing delivery numbers.
“While the additional cash infusion provides a bridge through the start of production for Lucid Gravity in late 2024, cash burn remains a concern, and execution on cost reductions and increasing volumes continues to be key to reaching profitability,” the analyst added.
In long term, Gengaro sees the potential to succeed in the EV market with the price target representing a conservative view on “the uncertainty around timing of profitability”.
“We continue to believe LCID’s leading technology will drive long-term success, but we maintain our Hold rating based on uncertainty around timing of profitability. We are bumping our target price to $4 from $3,” he concluded.
Lucid Motors CEO Peter Rawlinson stated late Monday that the company is “laser-focused” on enhancing the Lucid Air and developing two upcoming models rather than working on Energy Storage Systems (ESS).
In late 2020 and early 2021, Lucid built a prototype of a 300-kilowatt-hour stationary battery storage system at its engineering lab, as Senior VP of Product Erich Bach told TechCrunch at the time.
Last week, Lucid’s chief executive announced that the first pre-production units of the Gravity have rolled off the production line.
The California-based company delivered 2,394 vehicles in the second quarter of the year and produced 2,110 units.
Last Friday, Rawlinson shared a comparative chart showcasing the miles per gallon of gasoline-equivalent (MPGe) results of the newly launched 2025 version of the Lucid Air sedan against three key competitors: Tesla Model S, Mercedes EQS and Porsche Taycan.
The executive said, if Tesla maintains the progression rate, it will need 7 years to reach the same MPGe of the 2025 Lucid Air, 146 miles.
Written by Cláudio Afonso | LinkedIn | X
