Lucid Group, Inc. (NASDAQ:LCID) shares fell on Wednesday after the electric vehicle maker reported disappointing second-quarter results, with revenue of $259.4 million, missing analyst estimates of $296.24 million.
The Newark, California-based company also posted a larger-than-expected adjusted loss of 24 cents per share, compared to the forecasted loss of 21 cents.
Despite strong vehicle performance and ramped-up production of its Gravity SUV, Cantor Fitzgerald analyst Andres Sheppard maintained a Neutral rating, citing persistent challenges such as supply constraints, negative gross margins, and a revised FY25 production outlook.
Check out the current price of LCID stock here.
Cantor Fitzgerald analyst Andres Sheppard reiterated the Neutral rating on the stock, with a price forecast of $3.
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Sheppard sees Lucid's vehicles offering superior battery efficiency, range, performance, space, and charging speed versus other EVs.
He notes that as production ramps, the Gravity's daily orders have nearly doubled since its debut. The Gravity has a total addressable market roughly six times that of the Air sedan.
He highlights a midsize platform launch in the second half of 2026.
Lucid also plans to enter the robotaxi market with Uber in late 2026.
Sheppard expects these developments to boost customer demand and margins materially.
However, he remains neutral near term given the company's revised FY25 production guidance, persistently high negative gross margins, additional capital requirements, supply constraints, a weakening macro environment, and tariff uncertainty.
The analyst lowered the FY25 production estimate to 18,500 (from prior 20,000) to reflect updated company guidance.
The analyst also lowered the FY25 delivery estimate to 16,650 (from 17,000 prior) to remain conservative.
This results in a decrease in FY25 revenue to approximately $1.41 billion (from roughly $1.43 billion prior).
Finally, the analyst lowered the FY25 capex estimate to approximately $1.15 billion (from a prior estimate of around $1.43 billion) to reflect the updated guidance.
Price Action: Lucid shares are trading lower by 9.24% to $2.205 at last check Wednesday.
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