Lucid Group (LCID) CEO Peter Rawlinson says his company is “mostly immune” to the EV tax credit cuts that Donald Trump is planning. Since Trump defeated Vice President Kamala Harris in the 2024 U.S. presidential election, his plans for the EV market have come into sharp focus. He is expected to eliminate the $7,500 tax credit introduced by President Joe Biden to incentivize buyers to switch to electric vehicles. While this could impact many EV stocks, Rawlinson recently clarified that he isn’t concerned about what it would mean for Lucid.
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What’s Happening with Lucid Stock?
Lucid stock ended last week in the red, down 3%. While shares rose in premarket trading today, LCID remains down over the past week. Speculation about Trump cutting the tax credit has weighed on most EV stocks recently. Additionally, analyst sentiment toward Lucid has been unfavorable. This combination has caused shares to decline 9% over the past five days.
Despite these potentially concerning elements, Rawlinson isn’t worried about the potential impact of Trump’s tax credit plans on Lucid. In a recent interview with Bloomberg TV, he stated that, among all EV producers, he considered Lucid to be the “most immune” if Trump eliminates EV tax credits. He added that he doesn’t worry about Tesla (TSLA) benefiting unfairly from Elon Musk’s relationship with Trump, stating that Lucid has “taken the mantle of technology leadership from Tesla right now.”
It’s true that TSLA stock has been surging since Trump’s victory, largely due to positive speculation about Musk receiving a White House position. However, Rawlinson seems undaunted by the fact that Lucid is facing a much larger rival in Tesla. This type of confidence could help inspire investor trust in LCID stock and in the EV technology that Rawlinson claims can help it withstand any coming storms.
Wall Street Remains Sidelined on LCID Stock
Turning to Wall Street, analysts have a Hold consensus rating on LCID stock based on one Buy, six Holds, and two Sells assigned in the past three months, as indicated by the graphic below. While shares have fallen 54% over the past year, the average LCID price target of $3.11 per share implies 55% upside potential.
