Stifel analyst Stephen Gengaro slashed on Friday the firm’s price target on the shares of Lucid Motors by 30% as the EV maker prepares to execute a 1:10 reverse stock split.
The call came on the same day the electric vehicle maker’s planned 1-for-10 reverse stock split takes effect after market close. Lucid shares will begin trading on a split-adjusted basis on Tuesday, September 2.
Lucid stock closed Thursday at $2.07, just above its all-time low of $1.93 hit late last year, about three months before CEO and CTO Peter Rawlinson exited the role.
The shares are down 31% year to date and about 48% over the last twelve months.
In a research note published Friday and obtained by PriceTarget, the analyst maintained a ‘Hold’ rating and cut the target to $2.10 from $3.00.
“LCID’s 2Q25 revenue modestly beat our forecast, while gross profit and adjusted EBITDA were below our projections,” Gengaro wrote.
The revised $2.10 price target translates to $21.00 post-split.
The analyst noted that Lucid cut its 2025 production guidance to 18,000-20,000 vehicles earlier this month, down from 20,000 units previously, citing “market volatility and industry headwinds.”
“We continue to be big believers in LCID’s technology, and view the Air and Gravity as excellent products,” Gengaro said.
“However, we expect additional capital to be required over the next few years, and we are awaiting clarity on Gravity sales and the rollout of the midsize,” he added.
Gravity, Lucid’s second model, is currently taking around four to five weeks to assemble at the company’s plant in Casa Grande, Arizona, according to a customer email seen by EV last week.
A recent drone flyover showed roughly 1,000 Gravity SUVs parked at the site, though the number of semi-assembled vehicles slated for completion at Lucid’s Saudi facilities remains unclear.
Lucid last week reaffirmed the rationale behind its reverse stock split, with Chief Financial Officer Taoufiq Boussaid stressing on the second-quarter earnings call that the move “is not a cosmetic action.”
“This is a deliberate and targeted measure to ensure Lucid’s equity remains accessible to a broader universe of long-only institutional investors,” Boussaid said, according to Lucid’s head of communications Nick Twork, who reiterated the remarks in response to a question on X.
“It also aligns our share price with the strategic trajectory of the company as we move into the next chapter of scaling our operations and deepening our capital markets engagement,” Boussaid added.
Lucid announced the reverse split plan on July 17, minutes before unveiling a robotaxi partnership with Uber and self-driving startup Nuro.
Shareholders approved the measure on August 18, with 98.5% of votes cast in favor.
Interim CEO Marc Winterhoff and Boussaid have denied that the step was motivated by delisting concerns, saying the intent is to strengthen the company’s market position.
