Lucid Stock Under Pressure as Analyst Sees Revenue, Margin Risks

Lucid Group, Inc. (NASDAQ:LCID) shares took a hit as RBC Capital analyst Tom Narayan lowered its price target after a weak third-quarter delivery report disclosed last week. The company reported a production decline of about 24% year over year to 2,954 vehicles in the third quarter of 2026. Deliveries declined nearly 7% from 4,078 vehicles a year earlier as the electric vehicle maker continued to reduce inventory and align output with near-term demand. • Lucid Group stock is among today’s weakest performers. What’s behind LCID decline? RBC Cuts Price Target On Lower Revenue Outlook Narayan lowered his price forecast, citing a reduced 2027 revenue forecast of $2.8 billion and cutting the sales multiple to 0.5x from 0.7x amid disappointing Gravity sales. Potential revenue from autonomous-driving software remains a longer-term opportunity, with no meaningful near-term contribution expected, adds the analyst. The analyst estimates quarterly revenue of $351 million, below consensus, and anticipates weaker gross margins due to lower fixed-cost absorption. For 2026, Narayan projects deliveries of 15,600 vehicles, compared with consensus of 17,100. Read Also: Tesla Rival Lucid Cuts Production Output by 38%, Misses Delivery Estimates Despite High Fuel Costs Leading to EV Surge Plans to Expand in France Separately, Lucid said it plans to open its first three retail and service locations in France in the first quarter of 2027, with the sites currently in advanced planning with partner Emil Frey France. The company aims to expand its French network to more than 16 partner locations by the end of 2027, strengthening its local sales and after-sales support. Reservations with priority for future ordering are already available on Lucid’s French website, while vehicle orders are expected to open in the first quarter of 2027. Q3 Earnings Due in November Lucid will report third-quarter financial results and provide an update on its key priorities on Nov. 9. Analysts expect a loss of $2.37 per share, compared with a loss of $2.65 per share a year earlier. Revenue is expected to rise to $418.31 million from $336.58 million. See More: Top Momentum Stocks Lucid Group Benzinga Edge: Momentum Score Signals Caution Below is the Benzinga Edge scorecard for Lucid Group, highlighting its strengths and weaknesses compared to the broader market: Momentum: Bearish (Score: 1.36) — The stock is showing very weak trend strength versus the broader market, which fits with its position well below key moving averages. The Verdict: Lucid Group’s Benzinga Edge signal reveals weak momentum as the defining feature of the setup right now. Until price starts reclaiming key trend levels (like the 20-day and 50-day averages), the chart still favors caution despite the oversold RSI. LCDL ETF Exposure: GraniteShares 2x Long LCID Weighting GraniteShares 2x Long LCID Daily ETF (NASDAQ:LCDL): 66.66% Weight Significance: Because LCID carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock. LCID Stock Price Activity: Lucid Group shares were down 8.71% at $3.46 at the time of publication Monday. Photo via Shutterstock