BofA Securities Affirms Underperform on Lucid, $1 Price Target

BofA Securities analyst John Murphy reiterated an Underperform rating and $1.00 price target on Lucid Group Inc.

(NASDAQ: LCID).

“Lucid’s (LCID) 2Q:25 adj. EPS of ($0.28) was worse than BofA of ($0.18) and Bloomberg consensus of ($0.22). Reported revenue of $259mm was lower than BofA of $267mm and consensus of $262mm.

LCID previously announced 2Q:25 deliveries of 3,309, which were slightly below our original expectations. Adj.

EBITDA of ($632mm) was worse than BofA of ($617mm) and consensus of ($605mm) driven primarily by more negative gross margin than expected (105.0%) vs.

BofAe of (85.0%), management called out a 21percentage point impact to gross margin ~($55mm) from tariffs. This was higher than expected and the previously guided range of 8%-15%.

LCID ended 2Q:25 with $2.8bn of cash & equivalents and short-term investments, down from $3.6bn at end of 1Q:25.

We are revising our estimates to reflect the latest company commentary and recent developments on the regulatory side, including tariffs, IRA incentives, and regulatory credits.

These developments will likely weigh negatively on sales and, as a second derivative, on the production ramps for both the Gravity and the Mid-size vehicle (to be launched in late 2026).

We cut our valuation multiple to 1.5x EV/Sales (prior 2x) to reflect these incremental challenges. Our PO remains unchanged at $1. Reiterate U/P.”

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