Lucid Group (LCID) saw its stock price tank on Wednesday after the EV company released its Q4 earnings report and announced that its CEO, Peter Rawlinson, would be stepping down. Rawlinson, who founded the company, will transition to a strategic technical advisory role. As a result, Bank of America downgraded Lucid stock from Hold to Sell with a price target of $1 per share, which is down from the previous target of $3.
According to BofA analysts, who are led by 4.5-star analyst John Murphy, Rawlinson’s departure is a significant loss for Lucid. Indeed, they saw him as the driving force behind the development of the company’s vehicles, as well as its proprietary powertrain technology. His leadership also played a crucial role in assembling the Lucid team. Therefore, they believe Rawlinson’s expertise will be deeply missed.
Consequently, Bank of America now expects Lucid’s product development to slow down and consumer demand to weaken, which could put potential funding opportunities at risk. Indeed, the analysts pointed to Lucid’s own filings, which stated that Rawlinson was a key member of the team and that the company was highly dependent on his services.
What Is a Good Price for LCID Stock?
Turning to Wall Street, analysts have a Hold consensus rating on LCID stock based on one Buy, four Holds, and three Sells assigned in the past three months, as indicated by the graphic below. After a 29% decline in its share price over the past year, the average LCID price target of $2.64 per share implies 16.56% upside potential.
