Morgan Stanley Cuts Lucid’s Price Target to $10 From $30

Morgan Stanley analyst Andrew Percoco downgraded Lucid from Equalweight to Underweight with a price target of $10.00 (from $30.00).  

The analyst comments: “Lucid’s premium positioning and higher ASPs help buffer near-term volatility from the loss of EV tax credits relative to other mass-market EV OEMs.

Additionally, its vehicles deliver industry-leading performance (i.e., battery efficiency) which awarded Lucid’s technology-licensing agreement with Aston Martin—but its path to profitability hinges on successfully scaling its more affordable midsize platform (SOP expected in late 2026, with ramping production in 2027).

Despite expected improvements in auto gross margins as Gravity production scales, we do not forecast Lucid to reach gross profitability until 2028, and while operating expenses remain stable, EBIT losses per vehicle improve (from $216k/vehicle in 2025 to $126k in 2026) but persist until 2031.

In the interim, we see significant dilution risk for shareholders as we estimate it will need to raise ~$2bn of equity by 2H26 (relative to its $4.6bn market cap).”

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