Premium electric vehicle manufacturer Lucid Group, Inc. LCI reported below-consensus third-quarter revenue and also lowered its production guidance for 2023. The stock has reacted to the results with a move to the downside. Notwithstanding the subpar results, Needham analyst Chris Pierce reiterated a Buy rating on the stock. He lowered his price target from $9 to $5.
Needham’s Bullish Thesis: Pierce premised his optimism regarding Lucid on the company’s “industry-leading” battery and drive-train technology. “We continue… to see legacy OEMs struggle to make affordable EVs, with LCID a willing potential technology partner to drive down costs, particularly on the battery tech side,” he said.
The downward price target adjustment was to account for the lower deliveries, which will likely drive margins, the analyst said. Lucid said it delivered 1,457 vehicles and produced 1,550 vehicles in the third quarter and lowered its delivery guidance from 10,000+ units to 8,000-8,500 units.
See Also: Best Electric Vehicle Stocks
Needham’s Pierce said he sees the Gravity SUV launch and ramp-up to fulfill a large number of orders from Saudi Arabia as potential soft catalysts. “But hard evidence of better numbers is hard to spot currently,” he added.
Lucid Price Action: In premarket trading, Lucid fell 4.88% to $4.09, according to Benzinga Pro data.
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Read Next: Rivian Vs Lucid: Fund Manager Gary Black Dissects Divergent Tale Of 2 EV Makers After Q3 Results
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