LCID: Robotaxi Partnership Will Drive Future Autonomous Expansion Despite Capital Needs

Lucid Group's analyst price target has been revised lower, with recent moves including cuts such as $21 to $17 and $70 to $30, as analysts cite ongoing capital needs despite confidence in the company's technology, product lineup, and long term growth potential.

Analyst Commentary

Analyst views on Lucid Group have become more nuanced, balancing confidence in the company’s technology and product roadmap with heightened scrutiny of its capital structure and execution risk.

Recent research notes highlight both the upside tied to Lucid’s premium positioning in electric vehicles and the financial and operational hurdles it must clear to justify earlier, higher valuations.

Bullish Takeaways

• Bullish analysts continue to highlight Lucid’s Air and Gravity models as high quality products that can support a premium brand and justify long term growth assumptions in revenue and margins.
• Some price targets have been raised on expectations that Lucid can leverage its platform for additional opportunities, including potential robotaxi use cases and expanded variants of the Gravity lineup.
• Positive commentary points to the company’s ongoing investments in autonomy and advanced features, which are seen as key differentiators that could support higher pricing power and improved unit economics over time.
• Despite recent capital raises, bullish analysts view the strengthened balance sheet as a necessary step that extends the company’s runway to execute on its growth plans.

Bearish Takeaways

• Bearish analysts have trimmed price targets to reflect increased dilution from recent convertible note offerings and the impact of the reverse stock split on perceived equity risk.
• There is concern that Lucid will need additional capital over the next several years, which could pressure valuation as investors factor in ongoing funding needs and potential future dilution.
• Some research notes flag execution risk around scaling production and demand for higher priced EVs, suggesting that slower than expected ramp could limit operating leverage and delay profitability.
• Relative to prior expectations, recent target cuts indicate a recalibration of growth and margin assumptions, with analysts assigning more conservative multiples to account for industry competition and macro uncertainty.

What's in the News

• Uber plans to launch driverless rides in the San Francisco Bay Area using Lucid Gravity SUVs equipped with Nuro's self driving technology, positioning Lucid directly in the emerging robotaxi market and expanding its autonomous vehicle exposure (Bloomberg).
• Lucid opened customer orders for the new Lucid Gravity Touring SUV, priced from about $80,000 in the U.S., with a promised range of up to 337 miles, ultra fast charging via NACS, and seating for up to seven as it broadens its Gravity lineup for a wider premium audience (company announcement).
• Orders for the Lucid Gravity Touring have also opened in Canada, with deliveries expected early next year, reinforcing Lucid's North American expansion and adding a dual motor, high performance SUV option with extensive cargo and seating flexibility (company announcement).
• Lucid announced a partnership with NVIDIA to accelerate its roadmap from advanced driver assistance toward Level 4 autonomy, integrating NVIDIA DRIVE AV and Thor platforms into Gravity and upcoming midsize vehicles to enable more capable over the air upgraded automated driving features (company announcement).
• Lucid reported third quarter 2025 production of 3,891 vehicles plus more than 1,000 units built for final assembly in Saudi Arabia, and 9,966 vehicles produced year to date, highlighting both scaling progress and its growing international manufacturing linkages (company operating results).

Valuation Changes

• Fair Value: Unchanged at approximately $18.43 per share, indicating no revision to the intrinsic value estimate in the latest update.
• Discount Rate: Steady at 12.5%, reflecting an unchanged view of Lucid Group's risk profile and required return.
• Revenue Growth: Effectively unchanged at around 81.0%, with only an immaterial upward adjustment in the projected growth rate.
• Net Profit Margin: Risen slightly from about 4.91% to roughly 4.97%, signaling a modest improvement in long term profitability assumptions.
• Future P/E: Fallen slightly from about 33.45x to approximately 33.05x, implying a marginally lower valuation multiple applied to forward earnings.