Overview
- Analyst Andrew Percoco lowered the rating from Equal Weight and reduced the target from $30, implying roughly 25% downside from recent levels.
- Morgan Stanley now models gross-profit breakeven in 2028 and expects EBIT losses to continue through 2031.
- The firm estimates Lucid may need about $2 billion in equity by the second half of 2026, a sizable sum relative to its roughly $4.6 billion market value.
- Shares fell about 7% to $12.47 Monday and are down roughly 58% year to date, with short interest near 50% of the float and weak momentum readings.
- Recent pressure includes a wider-than-expected Q3 loss, senior departures such as Eric Bach, and an $875 million convertible note sale, even as analysts note product efficiency and pricing strengths.