Cantor Cuts Lucid (LCID) Target to $14 on Production Concerns

Cantor Fitzgerald has lowered its price target on Lucid Group (NASDAQ: LCID), citing softer production forecasts and continued margin pressure even as the company ramps its Gravity SUV.

According to TheFly, the firm reduced its target to $14 from $21 while maintaining a Neutral rating. Analysts pointed to lower production expectations, persistently negative gross margins, additional capital needs, macroeconomic headwinds and tariff concerns as key risks.

Lower forecasts and margin pressure

Cantor now expects Lucid to deliver about 23,185 vehicles in fiscal 2026, with the majority of volume coming from the Gravity SUV. Deliveries of the Air sedan are projected to remain largely flat year over year.

The revised outlook follows Lucid’s fourth-quarter and full-year 2025 earnings report, released on February 24. The company reported Q4 revenue of $522.7 million and full-year revenue of $1.35 billion. It ended the quarter with approximately $4.6 billion in liquidity, according to FinBiz.

For the full year, Lucid delivered 15,841 vehicles and guided for 2026 production of between 25,000 and 27,000 units. Management said it would continue aligning output with demand as it scales operations.

Gravity becomes centerpiece of 2026 strategy

Analysts expect Gravity to account for most of Lucid’s projected growth next year, positioning the SUV as central to the company’s path toward higher volumes. However, concerns remain around profitability.

Lucid has faced ongoing gross margin challenges as it absorbs ramp costs and works to expand its product lineup. Cantor’s note suggests that additional capital requirements and external pressures, including tariffs, could weigh on near-term performance.

Lucid continues to position itself in the premium EV segment, emphasizing advanced battery technology, efficiency and long-range capability as it competes with established luxury and EV brands.

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