Shares of EV (electric vehicle) startups Rivian (NASDAQ:RIVN) and Lucid (NASDAQ:LCID) declined 6.82% and 5.66%, respectively, on Thursday, April 11. This notable drop came after Ford Motor Company (NYSE:F) announced a reduction in the price of its electric F-150 Lightning pickup trucks. Taking a page out of Tesla’s (NASDAQ:TSLA) playbook, Ford is cutting the prices of its EVs to stimulate volume growth, intensifying the price war among automakers.
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Per a CarsDirect report, Ford is reducing the price of its F-150 Lightning trucks by about $5,500 to make them more affordable. Earlier, Ford announced a reduction in the price of its 2023 Mustang Mach-E, with discounts ranging from $3,100 to a maximum of $8,100.
The pricing adjustments initiated by Ford and other major players present substantial challenges for non-profitable startups like Rivian and Lucid. These companies are then forced to reduce prices to stay competitive, which makes it hard for them to operate and attract more funding. Besides for competitive headwinds, weak EV demand continues to take a toll on Rivian and Lucid.
Is LCID Stock a Good Buy?
Lucid stock has dropped over 69% in one year. The weakening of EV demand amid higher interest rates, increased competition, and continued cash burn weighed on Lucid stock. While LCID stock lost substantial value, analysts see continued headwinds and remain sidelined on this penny stock (learn more about penny stocks here).
Lucid stock has one Buy, six Hold, and two Sell recommendations for a Hold consensus rating. Analysts’ average price target on LCID stock is $3.21, implying 28.40% upside potential from current levels.
If you’re wondering which analyst to follow to buy and sell LCID stock, Morgan Stanley’s Adam Jonas is the most accurate analyst covering the stock in a one-year timeframe, according to TipRanks. Copying Jonas’ trades on LCID stock and holding each position for one year could result in 100% of your transactions generating a profit, with an average return of an impressive 54.86% per trade.
Is Rivian a Buy, Sell, or Hold?
Rivian stock is down more than 59% year-to-date, reflecting an industry-wide slowdown in demand and heightened price competition. Given the near-term headwinds, Wall Street is cautiously optimistic about RIVN’s prospects.
Rivian stock has 12 Buy, nine Hold, and three Sell recommendations for a Moderate Buy consensus rating. Analysts’ average price target on RIVN stock is $17.67, implying 84.64% upside potential from current levels.
