Monday, December 6

Lucid share: Morgan Stanley misses Tesla competitors super-bearish price target


?? Lucid with SPAC in July
?? Morgan Stanley predicts share price collapse
?? Not all analysts are so extremely bearish

In July, the Lucid share roared on the stock exchange at a rapid pace. After the price of the Lucid share was $ 24.08 shortly after the SPAC IPO, the value recently rose to $ 57.74 (high since the end of July on November 17, 2021). But not all stock market experts are impressed by the price development. Above all, Morgan Stanley is now issuing an extremely bearish price target.

Lucid shares before the crash?

A Morgan Stanley analysis last week caused quite a stir in Lucid stock. Analyst Adam Jonas thinks he has recognized a fundamental problem in the production of the Tesla competitor. After Lucid boss Peter Rawlinson announced at the end of September that he wanted to increase production to 90,000 vehicles per year over the next two years, Jonas sees these figures as too ambitious. The scaling of production is a delicate undertaking that is associated with high risk for the entire company, as the Morgan Stanley analyst announces in his assessment. In addition, there is the insecure supply chain situation, which Lucid cannot influence itself. That is why Jonas left the rating for the Lucid share at “sell”. However, Morgan Stanley upgraded its target price from $ 12 to $ 16. From the current price of 52.00 US dollars (closing price on November 23, 2021), this means a downside potential of around 70 percent.

Lucid stock market value: Morgan Stanley not alone with skepticism

But given the high valuation of the Lucid share, other experts are also rather cautious. Chartered financial analyst Edward Sheldon explains in a “The Motley Fool” article why he believes that the big EV producers are in a bubble – including Lucid. Sheldon states in particular that Lucid has only delivered a handful of cars so far and still has a market value of 84.16 billion US dollars (as of November 23, 2021). The price-to-sales ratio would amount to a high 42 that brings “tears to his eyes”.

Mixed expert opinions

TipRanks’ analyst summary shows that a total of three Wall Street experts have given an opinion on Lucid stock in the past three months. Two experts give a “Buy” rating, the highest price target is 60 US dollars.

Overall, it can be said that the competition in the EV market is getting bigger and bigger. Not only electric car pioneers like Tesla want their share of the cake, but also newcomers like Rivian. And as if that weren’t enough, traditional car manufacturers such as Volkswagen, Daimler & Co. are constantly expanding their range of e-cars. How far Lucid can get in this competition remains to be seen.

Finanzen.net editorial team

More news about Lucid

Image sources: Lucid, TIMOTHY A. CLARY / AFP via Getty Images



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