Lucid Group Inc. (LCID, Financial) saw an analyst upgrade on Monday from R.F. Lafferty's Jaime Perez, shifting from a "Hold" to a "Buy" rating, driven by cost improvements and strong liquidity. Perez maintained a target price of $4, anticipating growth based on current sales and a projected 10x price-to-sales multiple by 2025. Shares surged as Lucid reaffirmed its annual production target of 9,000 EVs and reduced its 2024 capital expenditure budget to $1 billion from $1.3 billion.
The company recently began taking orders for its upcoming Gravity SUV, which is expected to drive volume growth upon launch next year. Additionally, Lucid's new midsize vehicle platform, slated for release in 2026, signals strategic business development aimed at sustainable revenue growth. Lucid has raised $4 billion in capital this year to fund its production ramp-ups through 2026.
The analyst's outlook reinforces Lucid's cost-saving measures and solid balance sheet, positioning the EV maker for market expansion and supporting its production goals.
