Lucid Group Inc. LCID climbed 3.24% during the pre-market session on Tuesday, following an analyst upgrade
What Happened: Morgan Stanley has upgraded its rating for Lucid, recognizing the potential for the company’s new management to steer it towards artificial intelligence (AI) and beyond its current role as an electric vehicle manufacturer.
Morgan Stanley analyst Adam Jonas has shifted their rating for Lucid from Underweight to Equal-Weight. Jones believes Lucid could utilize strategic and independent partnerships to expand its electric vehicle manufacturing capacity.
Despite challenges, the company stands to gain from the U.S.’s heightened emphasis on domestic EV manufacturing, particularly given China’s dominance in the industry as per Morgan Stanley.
Lucid’s Gravity SUV is seen as a significant demonstration of the company’s 2nd generation software-defined vehicle architecture, which could enable Lucid to participate in AI-enabled autonomy through strategic partnerships.
“We see emerging scope for Lucid’s ability to play a role in the embodied AI theme” stated Jones in the note.
Why It Matters: Lucid has been facing a challenging business environment, marked by sluggish EV sales and widening losses. The sudden exit of CEO Peter Rawlinson in February 2025 further impacted the company’s stock. However, analysts have noted a potential surge in demand for Lucid’s Gravity SUV.
The company’s interim CEO, Marc Winterhoff, has also stated that customers are opting for high-end configurations of the Gravity SUV, with purchases exceeding $120,000. This, coupled with the company’s potential to expand into AI-enabled autonomy, could provide a much-needed boost for Lucid’s business.
Besides strategic product offering Jones also stated that Lucid, backed by Saudi Arabia’s sovereign wealth fund, benefits from the country’s strategic location, infrastructure, Middle Eastern market access, and potential for reliable renewable energy, offering key strategic advantages.
Lucid holds a momentum rating of 13.96% and a growth rating of 80.25%, according to Benzinga’s Proprietary Edge Rankings. The Benzinga Growth metric evaluates a stock’s historical earnings and revenue expansion across multiple timeframes, prioritizing both long-term trends and recent performance. For an in-depth report on more stocks and insights into growth opportunities, sign up for Benzinga Edge.
Lucid stock rose 3.35% to close at $2.16 on Monday. Over the past month, the stock plunged nearly 38%
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Momentum13.96
Growth80.25
Quality–
Value58.15
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