Morgan Stanley Cuts Lucid's Target to Lowest Among Wall Street Peers | EV
Morgan Stanley reduced its price target for Lucid Motors to $3 from $5, maintaining an 'Underweight' rating. This is the firm's third cut since December 2023. The target is 9% below the stock's Wednesday closing price of $3.29. Lucid recently reported a 6.7% decline in third-quarter vehicle deliveries and a $400 million draw on its credit line. Morgan Stanley has consistently rated Lucid 'Underweight' since September 2021, except for a brief 'Equal-weight' period in 2025.
How this was made
The 30-second read
Why it matters
The latest target cut reinforces bearish sentiment and may trigger short-selling or profit-taking.
Market read
Analyst target cuts are a key driver of short-term price moves; this downgrade adds to Lucid's downward pressure.
What to watch
Potential upside from upcoming midsize platform production and strategic partnerships.
Background
Lucid has faced a series of target reductions and underweight ratings from Morgan Stanley over five years, reflecting ongoing concerns about profitability and cash burn.
Ticker impact
Morgan Stanley cut its price target on Lucid to $3 from $5, reinforcing an Underweight stance.
likely pressure as the market prices in the lower target
The new target is below the current price, indicating the analyst expects the stock to underperform.
Market effects
The downgrade may weigh on other premium EV makers as analysts reassess sector valuations.
Limited to US EV stocks; no broader regional effect.
Minimal global impact beyond the EV niche.
Counterpoint
Some investors may view the target cut as an overreaction given Lucid's long-term growth potential.
Key entities
- AnalystMorgan Stanley
Equity research firm issuing the target cut.
- CompanyLucid Group Inc.
EV manufacturer whose stock is being targeted.
