1 Wall Street Analyst Thinks Lucid Stock Is Going to $5. Is It a Buy?

Core Viewpoint - Lucid Group's stock has seen a significant decline, but an analyst believes it is undervalued with potential for an 80% increase based on a new price target of $5 [1] Group 1: Company Positioning - Lucid has focused on the luxury electric vehicle (EV) market and has introduced the Gravity SUV to its lineup, which previously included the Air sedan [2] - The company is expected to benefit from a rebound in EV demand starting in 2025, following a challenging 2024 [2] - Lucid is considered well-positioned to capture market share due to its advanced technology, strong balance sheet, access to capital, award-winning vehicles, and strategic partnerships [2] Group 2: Financial Backing - The Saudi Public Investment Fund (PIF) is Lucid's largest shareholder and has provided significant capital support, including a 100,000-vehicle order for Lucid's electric sedans [3] Group 3: Delivery and Future Outlook - In 2024, Lucid delivered approximately 10,000 EVs and is relying on the Gravity SUV to boost consumer interest and delivery volumes in 2025 [4] - The company is set to report its fourth-quarter results on February 25, which could provide insights into early interest in the Gravity and its impact on future delivery volumes [4]