What Happened?
Shares of luxury electric car manufacturer Lucid (NASDAQ: LCID) jumped 2.8% in the morning session after Cantor Fitzgerald raised its price target on the stock to $26 from $20 while maintaining a Neutral rating.
The adjustment came after investor meetings with Lucid's CEO and CFO, where executives reaffirmed their vehicle production guidance of 18,000-20,000 units for the fiscal year.
Management also highlighted significant delivery visibility from existing contracts, including one with the government of Saudi Arabia for up to 100,000 vehicles and a recent deal to supply Uber with approximately 20,000 vehicles for a robotaxi program. In other positive news, Lucid announced plans to expand its distribution network in Germany by partnering with established car dealers to broaden its reach in Europe.
After the initial pop the shares cooled down to $22.65, up 1.9% from previous close.
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What Is The Market Telling Us
Lucid’s shares are extremely volatile and have had 52 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 5.9% as news of its partnership with Uber to supply 20,000 Gravity SUVs for a new robotaxi program continued to resonate with investors. The $300 million agreement represented a significant step for the electric vehicle maker, which has been working to overcome operating losses and cash burn. This deal with a major ride-sharing company like Uber was viewed as a strong endorsement of Lucid's technology and its new SUV model.
For investors, it signaled a potentially valuable new sales channel and a concrete step toward scaling its operations and carving out a position in the premium EV market.
Lucid is down 25.2% since the beginning of the year, and at $22.65 per share, it is trading 36.9% below its 52-week high of $35.90 from September 2024. Investors who bought $1,000 worth of Lucid’s shares 5 years ago would now be looking at an investment worth $231.83.
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