LCID Should I Buy
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Lucid Group Inc (LCID) is not a strong buy at this time for a beginner investor with a long-term strategy. The stock shows bearish technical indicators, mixed financial performance, and cautious sentiment from analysts. While there are some positive developments, such as increased vehicle deliveries and plans for new models, the company's financial health and competitive pressures suggest a wait-and-see approach is more prudent.
The technical indicators for LCID show a bearish trend. The MACD is below 0 and negatively expanding, the RSI is neutral at 36.636, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 9.655, with resistance at 10.379. Pre-market price is $9.86, up 1.13%, but overall, the trend remains weak.
Lucid Group delivered 15,841 vehicles in 2025, a 55% YoY increase, indicating growth in production. Plans to launch new, affordable models and focus on software and AI development could broaden its consumer base and improve long-term prospects. The EV market remains strong, with 96% of EV owners considering another purchase.
The stock's gross margin and EPS have declined YoY, and the company remains unprofitable with a net income of -$1.03 billion in Q3 2025.
Lucid's Q3 2025 revenue increased by 68.26% YoY to $336.58 million, but the company remains unprofitable, with a net income of -$1.03 billion (an 8.94% YoY improvement). EPS dropped to -3.31, down 19.07% YoY, and gross margin declined to -86.05%, down 19% YoY. While revenue growth is promising, profitability remains a significant concern.
Analysts have a cautious outlook on LCID. Baird lowered the price target to $14 from $17, maintaining a Neutral rating, citing mixed Q4 deliveries. Morgan Stanley downgraded the stock to Underweight with a price target of $10, down from $30, citing an 'EV winter' expected to last through 2026. Analysts are leaning more cautious overall.
