Lucid Group Inc (NASDAQ:LCID) stock is trading lower again Tuesday morning, struggling to find a floor after a brutal start to the week precipitated by a major analyst downgrade. Here’s what investors need to know.
- Lucid Group stock is among today’s weakest performers. Why is LCID stock dropping?
What To Know: The luxury electric vehicle maker continues to face heavy selling pressure following Morgan Stanley's decision on Monday to lower its rating on the stock to Underweight from Equal Weight, citing an “EV winter” coming in 2026.
Analyst Andrew Percoco slashed his price target to $10 from $30, rooted in concerns over Lucid's extended timeline to profitability.
Morgan Stanley's updated models project that the company will not reach gross profit breakeven until 2028, with EBIT losses expected to persist through 2031. While Percoco acknowledged Lucid’s industry-leading battery efficiency, he noted these structural advantages are currently outweighed by the capital-intensive path forward.
Read Also: Tesla Loses Key Bull Analyst: EV Giant Downgraded, While Rival GM Catches An Upgrade
Dilution risk remains a primary concern for shareholders. The analyst report estimates Lucid will require an equity raise of approximately $2 billion by the second half of 2026 to fund operations, a substantial figure given the company's market capitalization of roughly $4 billion.
This bearish outlook adds weight to a stock already down approximately 60% year-to-date. Sentiment has been further battered by the recent departure of Senior VP of Product Eric Bach and high volatility, with short interest currently hovering near 50% of the float.
Benzinga Edge Rankings: Highlighting the stock’s current technical standing, Benzinga Edge rankings assign Lucid a Momentum score of 7.49.
LCID Price Action: Lucid Group shares were down 2.90% at $12.39 at the time of publication on Tuesday. The stock is near its 52-week low of $11.46, according to Benzinga Pro data.
Currently, Lucid Group is trading approximately 29.4% below its 50-day moving average and about 42.9% below its 200-day moving average. These significant gaps suggest a bearish sentiment in the market, indicating that the stock has struggled to maintain upward momentum over the longer term.
The 52-week range of $11.46 to $36.39 further highlights the volatility and uncertainty surrounding the stock, with the current price hovering near the lower end of this range.
Read Also: Fed ‘Hawkish Cut’ Could Jolt Markets: Should You Hedge Your Portfolio?
Image: Shutterstock
