Lucid Group downgraded to Sell from Neutral at Redburn Atlantic

Redburn Atlantic analyst Tobias Beith downgraded Lucid Group (LCID) to Sell from Neutral with a price target of $1.13, down from $3.50. The firm’s work suggests it may be challenging for Lucid’s peers to replicate the efficiency of its vehicles before 2030. However, the company’s resultant cost advantage requires volumes to build sharply once the mid-sized platform is launched in the second half of 2026, the analyst tells investors in a research note. Redburn believes Lucid’s cash outflows will be “larger, for longer, than the market expects.” The cumulative free cash flow gap between Redburn and consensus through fiscal 2023 is $11B. “If we are correct, it suggests significant additional capital will eventually be required,” the firm contends.