Adam Jonas, an analyst from Morgan Stanley, maintained the Sell rating on Lucid Group (LCID – Research Report). The associated price target remains the same with $3.00.
Adam Jonas has given his Sell rating due to a combination of factors that highlight challenges facing Lucid Group. The company’s fourth-quarter results showed a revenue slightly above expectations, but the gross margin remained deeply negative at -89%, indicating significant cost challenges. Additionally, the adjusted EBITDA was in line with expectations but still reflected substantial losses, pointing to ongoing financial struggles.
Furthermore, despite a better-than-expected free cash flow burn, the guidance for 2025 production and capital expenditure was lower than consensus estimates, suggesting potential difficulties in scaling operations. The CEO transition also presents uncertainty regarding the company’s strategic direction. These elements combined suggest a cautious outlook for Lucid Group’s future performance, leading to the Sell rating.
In another report released today, Bank of America Securities also downgraded the stock to a Sell with a $1.00 price target.