Cantor Fitzgerald Assigns Neutral Rating to Lucid (LCID) Ahead of Q2 Report

Cantor Fitzgerald maintains a Neutral rating on Lucid Group (LCID) with a $3 price target. The electric vehicle company reported 3,309 vehicles delivered in Q2 2025, lower than expectations, but higher than Q2 2024. Gross margins are closely watched, with analysts expecting a 95% negative margin. Lucid produces and sells electric vehicles, batteries, and powertrains, and develops its own software.

Lucid Group, Inc. (NASDAQ: LCID), a prominent player in the electric vehicle (EV) sector, reported its Q2 2025 financials, revealing a mix of strategic shifts and persistent financial challenges. The company delivered 3,309 vehicles in the second quarter, an increase from Q2 2024 but below expectations. Lucid's gross margins remain a critical focus for analysts, with expectations of a 95% negative margin [1].

The quarter saw Lucid Group reporting a $0.24 per share loss, a 105% negative gross margin, and a revised vehicle production guidance of 18,000–20,000 units for the year [1]. These figures underscore the company's ongoing financial strain, exacerbated by a $830 million quarterly cash burn. Despite this, Lucid's strategic pivot towards technology licensing and partnerships with Uber and Nuro offers a glimmer of hope.

Lucid's partnership with Uber, which includes a $300 million investment and a commitment to purchase 20,000 Gravity SUVs for robotaxi deployment, positions the company at the forefront of autonomous mobility [2]. This deal provides production certainty, brand validation, and access to a $10 trillion autonomous mobility market by 2030 [2]. Analysts project Lucid's revenue to surge 360% by 2027, driven by this partnership, but success hinges on meeting production targets and cost control [2].

Cantor Fitzgerald maintains a Neutral rating on Lucid Group with a $3 price target, reflecting the mixed signals from the company's recent performance and strategic moves [1]. While the Uber partnership offers significant potential, the company's ability to execute and achieve profitability remains uncertain. Lucid's financial position, characterized by a leverage ratio of 3.7 and $4.86 billion in cash reserves, is under pressure from its high cash burn rate [1].

Investors should closely monitor key metrics such as production guidance, gross margin trends, and the impact of PIF funding. Lucid's ability to balance innovation with capital discipline will determine its future trajectory in the competitive EV landscape.

References:
1. [1] https://www.ainvest.com/news/lucid-group-financial-strain-strategic-hurdles-assessing-capital-sustainability-ev-sector-2508/
2. [2] https://www.ainvest.com/news/lucid-group-uber-partnership-catalyst-500-sales-growth-era-ev-innovation-2508/