"Morgan Stanley's halved LCID price target centers on three concerns: Q1 2026 results were hindered by a supplier quality issue, resulting in a 29-day stop-sale on the Gravity SUV, suppressing deliveries, and suspending guidance until Lucid Group's incoming CEO has sufficient time to review the outlook."
"The firm expects Lucid shares to stay pressured until a strategic update arrives. With the Underweight rating already in place on Lucid stock, the lower target reinforces a bearish stance."
"In the auto industry, sourcing problems can cascade into multi-quarter disruptions, raising the bar for Lucid's recovery. Lucid finished the year with roughly $4.6 billion in total liquid assets."
Lucid Group's price target was reduced by Morgan Stanley from $10 to $5, maintaining an Underweight rating. This decision follows a 29-day stop-sale on the Gravity SUV due to supplier quality issues and the suspension of full-year guidance amid a CEO transition. The firm anticipates continued pressure on Lucid's stock until the new CEO can assess the company's outlook. Lucid's recent financial performance showed a significant operating loss despite a revenue increase, highlighting ongoing challenges in the competitive EV market.
Read at 24/7 Wall St.
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