Citi Cuts Lucid Price Target to $14: Tough Quarter and Uncertainty

Citi analysts have lowered their price target for electric vehicle maker Lucid Group to $14. The decision comes after the company's first-quarter performance fell short of expectations and it withdrew its forward guidance. The Saudi-backed company is navigating a challenging period. Lucid's first-quarter results missed analyst estimates. The company failed to meet production and delivery targets, while cost pressures and supply chain issues also took a toll. These developments have heightened investor concerns about the company's near-term outlook. Citi's revised price target of $14 represents a significant reduction from previous estimates. Analysts noted that despite Lucid's growth potential, the stock should be valued lower given current market conditions and operational challenges. Although Lucid has the backing of Saudi Arabia's Public Investment Fund (PIF), the obstacles it faces on the path to profitability are notable. The withdrawal of guidance has increased uncertainty, and investors will closely monitor the company's strategic moves in the coming period. This is not investment advice.