Cantor Fitzgerald Lowers Lucid Price Target to $6

Cantor Fitzgerald analyst Andres Sheppard lowered the price target on Lucid Group Inc.

(NASDAQ: LCID) to $6 (from $8) while maintaining a Neutral rating.

“Our Thoughts – Cantor’s Take.

LCID reported Q3 revenue of $350.3M, below our estimate/Visible Alpha consensus of $410.4M/$396.3M (and above ~$337M in 3Q25), driven by 3,806 vehicle deliveries (and 2,954 vehicles produced).

Deliveries exceeded vehicles produced, as the company converted existing vehicle inventory into deliveries. AMP-2 and Midsize.

More importantly, in Q3 LCID reaffirmed that its AMP-2 Manufacturing facility in Saudi Arabia remains on track for inauguration in “early 2027,” ahead of the launch of the upcoming Midsize platform (targeting material production ramp-up in 2H27), which we find encouraging.

We view the SOP at AMP-2 and the launch of the Midsize platform as the two most material catalysts for the company.

Recall that LCID is targeting for the AMP-2 facility to have an annual production capacity of ~155K vehicles once complete.

Furthermore, we expect the Midsize platform to materially accelerate the company’s path towards profitability, driven by the more competitive price point (management targeting starting price of <$50,000) and by the better margin profile.

Recall that LCID has an agreement with the government of Saudi Arabia for up to 50,000 vehicles (plus an option for an additional 50,000), and we expect Midsize to represent most of these deliveries.

Additionally, on the call, LCID disclosed it expects to announce reveal and production dates in 1Q27. Robotaxi.

Separately, recall that Lucid and Uber (UBER, OW) previously expanded their robotaxi partnership to >35,000 vehicles (vs. prior ~20,000).

LCID is targeting commercial robotaxi launch in 1Q27 (in the Bay Area), and on the call, management disclosed that it currently has >100 vehicles undergoing testing on the road.

Additionally, Lucid and Bolt (European ride-hailing platform; private), recently unveiled a partnership to roll out self-driving vehicles across Europe.

This partnership marks LCID’s official entry into the European ridehailing market, which we view as a growth market for the company. Cost Improvements.

Separately, LCID also previously highlighted a ~$1.4B cash flow improvement across operating expenses, capital expenditures and working capital.

Management is targeting to achieve the improvement by year-end, and on the call the company disclosed that it achieved $0.8B improvement as of Q3, and remains on track for year-end target, which is encouraging, in our view.

Lastly, LCID now has total liquidity of ~$3.75B as of Q3 (after the recent $1.75B DDTL facility increase with the PIF), which management expects is sufficient to fund the business “into 4Q27,” though we conservatively model a capital raise in 3Q27.

Overall, we are encouraged by the new management’s roadmap towards accelerating LCID’s path to profitability and by the progress at AMP-2 (and ahead of the launch of the Midsize platform).

Still, we remain Neutral, driven by additional capital needs, negative margins, supply-chain disruptions, and awaiting further granularity on Robotaxi and Midsize Ramp-up.

We lower our PT to $6 (from $8), our Neutral is Unchanged.”

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