Lucid Group’s Stock Down 35% as Analyst Puts $1 Price Target Out

Lucid Group shares (NASDAQ:LCID) failed to break $3.50, only to succumb to a 35% decline in a little over one week, bringing the price at close to $2.26 on a volatile day. Bulls on the electric vehicle manufacturer experienced a significant setback with shares falling 13.60% on the day, as the unexpected resignation of CEO and founder Peter Rawlinson caused some market unrest.

Peter Rawlinson, who has been with Lucid since 2019, announced his immediate resignation, creating uncertainty within the leadership structure. In response, the company appointed Marc Winterhoff, the former Chief Operating Officer, as the interim CEO to steer Lucid through this challenging phase.

Adding to the turbulence, Bank of America downgraded its rating for Lucid from “Neutral” to “Underperform,” significantly lowering the price target from $3 to a paltry $1. This decision stems from perceived challenges in stalled product development and anticipated difficulties in securing funding, further exacerbated by Rawlinson's departure.

Despite these setbacks, Lucid’s financial performance in the fourth quarter showed some promise. The company reported revenues of $234.5 million, surpassing Wall Street expectations. Furthermore, Lucid’s non-GAAP loss per share was $0.22, which was better than the projected $0.25 loss. Production figures also provided a positive note, with 3,386 vehicles produced against an estimate of 2,904 and deliveries at 3,099 vehicles, exceeding the forecasted 2,637.

Looking ahead, Lucid has presented a robust production guidance for 2025, aiming to manufacture 20,000 vehicles—over twice the amount produced in 2024. This optimistic outlook, however, is contingent upon overcoming current operational challenges and securing the necessary financial resources to support their ambitious growth targets.