Lucid's Stock Soars: A Closer Look at the Current Investment Landscape

5 Sept 2025 18:42

Key Insights

• Lucid shares experience a significant uptick following favorable analyst coverage.
• Cantor Fitzgerald projects Lucid's stock could reach $20 within a year.
• The relationship between Lucid and its primary investor presents both opportunities and challenges for other shareholders.

Lucid (NASDAQ: LCID) is witnessing a robust bullish trend in Friday's trading, fueled by fresh analyst coverage. As of 2 p.m. ET, the electric vehicle (EV) manufacturer's stock price had surged by 12.3% during the day's session.

The rapid ascent of Lucid's stock today can be attributed to new coverage from Cantor Fitzgerald. Prior to the market's opening bell this morning, Cantor issued a report on Lucid, elevating its 12-month price target from $3 to $20 per share. While the magnitude of this increase is amplified due to the company's recent 1-for-10 reverse stock split, Cantor's revised valuation still suggests a potential upside of approximately 10%, even after today's significant gains.

Lucid's stock has experienced considerable volatility in connection with the implementation of its 1-for-10 reverse stock split. The split took effect after market close on Aug. 29, with shares commencing trading under the new structure on Sept. 2.

Examining Lucid's Investment Potential

In its Q2 results released in August, Lucid reported a loss of approximately $739.26 million on revenues of $259.4 million for the period. The company concluded the quarter with cash and equivalents totaling roughly $1.8 billion.

Typically, losses of this magnitude would be unsustainable. However, Lucid benefits from the backing of a substantial and influential financial supporter. The Public Investment Fund (PIF) of Saudi Arabia, Lucid's majority stakeholder, regularly provides capital infusions to the EV specialist. This relationship could prove to be a critical factor in determining long-term shareholder performance.

While the PIF's substantial investment and ongoing support of Lucid suggest that the company's significant losses may be less concerning than in normal circumstances, this dynamic also introduces another risk factor for investors. Lucid is likely to continue issuing stock to the PIF to raise funds, which could pose a considerable risk to other shareholders.

Weighing the Investment Decision

Before considering an investment in Lucid Group, it's crucial to evaluate the following:

A prominent financial advisory firm's analyst team recently identified what they believe to be the top 10 stocks for investors to consider purchasing now, and Lucid Group was not among them. The selected stocks have the potential to generate substantial returns in the coming years.

For context, consider previous recommendations: a $1,000 investment in a popular streaming service stock recommended on December 17, 2004, would have grown to $678,148 by now. Similarly, a $1,000 investment in a leading graphics processor company stock recommended on April 15, 2005, would have appreciated to $1,052,193.

It's worth noting that this advisory service's overall average return stands at 1,065% — significantly outperforming the S&P 500's 186% return. Investors may want to explore the latest top 10 list, available through a subscription to the advisory service.

*Returns data as of August 25, 2025

The author of this article holds no position in any of the mentioned stocks. The financial advisory firm mentioned holds no position in any of the stocks discussed. The firm adheres to a disclosure policy.

Disclaimer: This information is provided for educational purposes only. Past performance does not guarantee future results.