Needham Reiterates a Neutral Stance on Lucid Group (LCID)

Lucid Group, Inc. (NASDAQ:LCID) is one of the most buzzing stocks to invest in right now. On August 4, Needham analyst Chris Pierce reiterated a neutral stance on Lucid Group, Inc. (NASDAQ:LCID), giving the stock a Hold rating without assigning a price target.

Lucid Group (LCID) Soars 11% as Vehicles Gain Access to Tesla Chargers

An engineer examining an electric vehicle design in a lab, showing the company’s innovative battery systems.

The analyst based the rating on Lucid Group, Inc.’s (NASDAQ:LCID) current and future performance, stating that the demand for its Gravity model is promising. He added that while the partnership between Nuro and Uber reflects the potential of its technology platform, there are several challenges that require consideration.

According to Pierce, Lucid Group, Inc. (NASDAQ:LCID) has had to adjust its production targets, with the attainment of considerable profitability remaining challenging despite the technological advancements.

The analyst also stated that Lucid Group, Inc. (NASDAQ:LCID) is experiencing ongoing margin pressures and high cash burn, factors that make up critical concerns for investors.

Lucid Group, Inc. (NASDAQ:LCID) is a manufacturer of electric vehicles. The company develops, designs, and builds energy storage systems for EVs and provides automakers with the battery pack system necessary to power plug-in, hybrid, and electric vehicles.

While we acknowledge the potential of LCID to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LCID and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.