Why This Analyst Halves Lucid Group's Price Forecast Despite 12%-23% Higher Tech Efficiency Than Tesla
Portfolio Pulse from Nabaparna Bhattacharya
RBC Capital Markets analyst Tom Narayan has halved Lucid Group's price forecast from $6 to $3 despite its technology being 12%-23% more efficient than Tesla's. The downgrade is due to reactive discussions with OEMs, lower expected licensing penetration, and demand concerns for its sedans. Lucid's Gravity and Mid-size offerings aim to reverse these woes, and its tech could benefit PHEVs amidst the EV slowdown in the U.S. Lucid also adjusted the price of its Lucid Air Pure model to compete with luxury sedans from Mercedes and BMW.

March 08, 2024 | 6:08 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Lucid Group's price target was halved by RBC Capital Markets analyst Tom Narayan from $6 to $3, citing concerns over OEM discussions, licensing penetration, and demand for its sedans.
The significant reduction in Lucid Group's price target by a reputable analyst due to concerns over OEM discussions and licensing penetration, despite its technological efficiency, is likely to negatively impact investor sentiment and the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Lucid Group's technology is reported to be 12%-23% more efficient than Tesla's, according to RBC Capital Markets analyst Tom Narayan.
While Lucid's technological efficiency over Tesla is noteworthy, the direct impact on Tesla's stock price in the short term is uncertain. Tesla's broad market presence and diversified product lineup may mitigate any immediate negative effects from this comparison.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50