Morgan Stanley Reiterates Equalweight on Lucid, $3 Price Target
- Rating
- Equalweight
- Unchanged
- Target
- $3
- Unchanged
- Outcome
- Reached
- on July 17, 2025
What the analyst said
Morgan Stanley analyst Adam Jonas reiterated an Equalweight rating and $3.00 price target on Lucid Group Inc.
(NASDAQ: LCID).
“What happened: Lucid announced a three-way partnership with Nuro (private) and Uber (covered by Brian Nowak) to deploy at least 20,000 Lucid Gravity SUVs equipped with Nuro’s L4 autonomous technology on the Uber network over the next six years.
Prototypes of the vehicle are currently undergoing testing at Nuro’s Las Vegas proving grounds, with the official launch expected later next year in “a major US city”.
Additionally, Uber plans to make a $300mn investment in Lucid as well as an additional investment in Nuro. The ‘Socket’. Electric machines are the corporeal ‘sockets’ for AI brain.
We’ve long viewed Lucid’s Gravity SUV as an important demonstration of the company’s 2nd generation software defined vehicle (SDV) architecture, increasing the opportunity for LCID to participate in AI-enabled autonomy via strategic partnerships.
The Nuro/ Uber partnership is a demonstration of LCID recognizing its key strategic position in the broader autonomy ecosystem. Common denominator.
Lucid’s largest shareholder (64% stake in the company) also maintains a significant stake in UBER (~4% stake and largest US holding) per the latest 13F filing.
Our upgrade of LCID shares in March was driven by what we believed was the market under appreciating the strategic opportunities (autonomy, manufacturing, on-ramping China, etc.) facing the company which could be catalyzed by this controlling shareholder’s wide-reaching global connections.
Alignment.
While $300mn in new equity funding from Uber equates to <1 quarter of cash burn for LCID, the investment may help to better align incentives between the two companies while providing modest financial cushion as Lucid ramps production of Gravity.
First of many?
In addition to the potential for further autonomy-related partnerships, we see a number of other strategic opportunities for Lucid including, but not limited to: licensing EV technology to legacy OEMs and/or using unused EV capacity and assets, leveraging the company’s role in EV manufacturing to enable the rise in embodied AI outside of just autos, and acting as an ‘on-ramp’ for China EV’s in the US.”
The price target and rating on this page are the opinion of the issuing research firm and its analyst, not of Price Target. This page is published for informational purposes only and is not investment advice, a recommendation, or an offer to buy or sell any security. Past performance does not guarantee future results. Consider your own circumstances and consult a licensed financial adviser before making investment decisions.
This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.
Where the price stands
LCID trades at $2.98. The 5 analysts who set a target in the last 3 months range from $3 to $11, with a median of $6. This $3 target is 50% below the median, the lowest on the Street.
Since the note LCID has moved −87% (from $22.90). The 12-month window closed on July 17, 2026.
Track record
This call✓ Target reached on July 17, 2025, 0 days after the note. Prices are split-adjusted.
Firm track recordMorgan Stanley: 82% of its 49 targets at least a year old were reached within 12 months (#8 of 26 firms); on Lucid, 2 of 2. Accuracy ranking →
Morgan Stanley on Lucid
Morgan Stanley price targets on Lucid
7 calls from March 17, 2025 to October 15, 2026. The target went from $3 to $0.30 (−90%). The rating moved from Hold to Sell.
- October 15, 2026Target cut from $0.50 (−40%)Sell$0.30
- July 15, 2026Kept the $0.50 targetSell$0.50
- May 6, 2026Target cut from $1 (−50%)Sell$0.50
- December 8, 2025Downgraded to Sell, target cut from $3 (−67%)Sell$1
- September 2, 2025Kept the $3 targetHold$3
- July 17, 2025 This noteKept the $3 targetHold$3
- March 17, 2025Earliest call shownHold$3
Targets are adjusted for the 1-for-10 reverse split on Sep 2, 2025, so every call is in the same share terms as this note.
