Morgan Stanley Upgrades Lucid’s Rating to ‘Equalweight’
Morgan Stanley analyst Adam Jonas upgraded on March 17, 2025, Lucid’s rating from ‘Underweight’ to ‘Equalweight,’ with a price target of $3.00 (unchanged).
“More than an ‘EV 1.0’ automaker? Following the announced/ongoing changes in leadership, we believe Lucid has opportunity to execute an AI strategy leveraging strategic/sovereign partnerships within the context of the urgency to develop onshore manufacturing capacity for BEVs as the ‘socket’ for the AI ‘brain’.
Price target unchanged at $3, Bull Case to $10, upgrade to Equal-weight. We believe that at this stage, the risks to upside are more equilibrated with the risks to downside for Lucid shares – as such, we believe stock presents a more balanced risk reward, underpinning an Equal-Weight rating. It’s difficult for us to see how near term quarterly results introduce new negative information that a bearish consensus doesn’t already expect.
Given the challenges to the stand-alone automaker business model, we move to EW on the emergence of a potentially bullish thesis to the Lucid story with a new leadership team.
We see emerging scope for Lucid’s ability to play a role in the embodied AI theme as an reshored/’friend-shored’ manufacturer with access to capital and strategic relationships that uniquely position Lucid to straddle geopolitical hurdles in potentially partnering with both China and the West.”
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