Lucid Group (NASDAQ: LCID) has gotten its first stock coverage from CFRA analyst Garrett Nelson. After Lucid Motors merged with Churchill Capital Corp. IV earlier this year spawning Lucid Group, the company has not had a Wall Street analyst set expectations for the stock, until now.
Nelson set Lucid Group’s 12-month price target at $25, as the stock currently trades just at $20.20 at around 2:30 PM in New York. Additionally, Nelson wrote, “Our adjusted EPS are ($1.65) for 2021, ($1.10) for 2022, ($0.70) for 2023, and ($0.25) for 2024.”
Lucid is set to deliver its first vehicle later this year with the Air Dream Edition sedan. The vehicle sports a luxurious interior with a sleek design and a high price tag. However, Lucid has brought forward specifications that make it worth nearly every penny. A recent review of the Air Dream Edition sedan from MotorTrend revealed a sporty and adaptive powertrain that has high range ratings and incredible, white-knuckle performance. “With first-class specs on its forthcoming luxury EV models, strong balance sheet and management team, and brand new factory in Arizona, LCID appears to check all the boxes of an industry newcomer with staying power,” Nelson wrote in a note to investors.
CFRA analysts do not believe that Lucid’s road to automotive success will be full of rainbows and blooming flowers. The company is entering the sector at one of the most challenging times for any car company, let alone a brand new one looking to break into the quickly growing electric sector. Looking at the EV sector alone, Lucid will go hand in hand with Tesla, which has dominated the industry since releasing the Model S in 2012. “Despite these competitive advantages, investors might encounter some speed bumps, as LCID’s closest competitor (Tesla) has established a formidable competitive moat,” Nelson adds.
Looking past the EV sector exclusively, Lucid will have to also battle through chip and supply chain shortages. An issue that has plagued nearly every automaker globally, chip shortages have derailed many companies’ plans for a strong finish to 2021, causing several production lines to stagnate as the result of automotive demand increasing while chip supplies slowly evaporate. “Chip shortages present a near-term operational risk,” the note stated.
Lucid Motors, fresh off $LCID listing, opens first southwest U.S. retail store
Finally, Lucid’s paid reservations for the Air Dream sedan have been “underwhelming thus far,” according to Nelson, as 11,000 units have been paid for as of late July. It is difficult to say whether this is fair, as Lucid is launching its first-ever production processes at the Casa Grande, Arizona facility. It is worth noting that CEO and CTO Peter Rawlinson was unwilling to commit to a target of 20,000 production units in 2022 as the company may be remaining conservative, knowing the unpredictable nature of automotive production.
Lucid will hold a production preview event later this month for media members and some reservation holders.
Nelson is ranked 6,126 out of 7,641 analysts on TipRanks, and has a 62% success rate with an average return of -2.0%.
Disclosure: Joey Klender is not an LCID Shareholder and has no plans to initiate any positions.
Elon Musk
Tesla blacklisted by Swedish pension fund AP7 as it sells entire stake
A Swedish pension fund is offloading its Tesla holdings for good.

Tesla shares have been blacklisted by the Swedish pension fund AP7, who said earlier today that it has “verified violations of labor rights in the United States” by the automaker.
The fund ended up selling its entire stake, which was worth around $1.36 billion when it liquidated its holdings in late May. Reuters first reported on AP7’s move.
Other pension and retirement funds have relinquished some of their Tesla holdings due to CEO Elon Musk’s involvement in politics, among other reasons, and although the company’s stock has been a great contributor to growth for many funds over the past decade, these managers are not willing to see past the CEO’s right to free speech.
However, AP7 says the move is related not to Musk’s involvement in government nor his political stances. Instead, the fund said it verified several labor rights violations in the U.S.:
“AP7 has decided to blacklist Tesla due to verified violations of labor rights in the United States. Despite several years of dialogue with Tesla, including shareholder proposals in collaboration with other investors, the company has not taken sufficient measures to address the issues.”
Tesla made up about 1 percent of the AP7 Equity Fund, according to a spokesperson. This equated to roughly 13 billion crowns, but the fund’s total assets were about 1,181 billion crowns at the end of May when the Tesla stake was sold off.
Tesla has had its share of labor lawsuits over the past few years, just as any large company deals with at some point or another. There have been claims of restrictions against labor union supporters, including one that Tesla was favored by judges, as they did not want pro-union clothing in the factory. Tesla argued that loose-fitting clothing presented a safety hazard, and the courts agreed.

(Photo: Tesla)
There have also been claims of racism at the Fremont Factory by a former elevator contractor named Owen Diaz. He was awarded a substantial sum of $137m. However, U.S. District Judge William Orrick ruled the $137 million award was excessive, reducing it to $15 million. Diaz rejected this sum.
Another jury awarded Diaz $3.2 million. Diaz’s legal team said this payout was inadequate. He and Tesla ultimately settled for an undisclosed amount.
AP7 did not list any of the current labor violations that it cited as its reason for
Investor's Corner
xAI targets $5 billion debt offering to fuel company goals
Elon Musk’s xAI is targeting a $5B debt raise, led by Morgan Stanley, to scale its artificial intelligence efforts.

xAI’s $5 billion debt offering, marketed by Morgan Stanley, underscores Elon Musk’s ambitious plans to expand the artificial intelligence venture. The xAI package comprises bonds and two loans, highlighting the company’s strategic push to fuel its artificial intelligence development.
Last week, Morgan Stanley began pitching a floating-rate term loan B at 97 cents on the dollar with a variable interest rate of 700 basis points over the SOFR benchmark, one source said. A second option offers a fixed-rate loan and bonds at 12%, with terms contingent on investor appetite. This “best efforts” transaction, where the debt size hinges on demand, reflects cautious lending in an uncertain economic climate.
According to Reuters sources, Morgan Stanley will not guarantee the issue volume or commit its own capital in the xAI deal, marking a shift from past commitments. The change in approach stems from lessons learned during Musk’s 2022 X acquisition when Morgan Stanley and six other banks held $13 billion in debt for over two years.
Morgan Stanley and the six other banks backing Musk’s X acquisition could only dispose of that debt earlier this year. They capitalized on X’s improved operating performance over the previous two quarters as traffic on the platform increased engagement around the U.S. presidential elections. This time, Morgan Stanley’s prudent strategy mitigates similar risks.
Beyond debt, xAI is in talks to raise $20 billion in equity, potentially valuing the company between $120 billion and $200 billion, sources said. In April, Musk hinted at a significant valuation adjustment for xAI, stating he was looking to put a “proper value” on xAI during an investor call.
As xAI pursues this $5 billion debt offering, its financial strategy positions it to lead the AI revolution, blending innovation with market opportunity.
Elon Musk
Tesla tops Cathie Wood’s stock picks, predicts $2,600 surge
Tesla’s future lies beyond cars—with robotaxis, humanoid bots & AI-driven factories. Cathie Wood predicts a 9x surge in 5 years.

Cathie Wood shared that Tesla is her top stock pick. During Steven Bartlett’s podcast “The Diary Of A CEO,” the Ark Invest founder highlighted Tesla’s innovative edge, citing its convergence of robotics, energy storage, and AI.
“Because think about it. It is a convergence among three of our major platforms. So, robots, energy storage, AI,” Wood said of Tesla. She emphasized the company’s potential beyond its current offerings, particularly with its Optimus robots.
“And it’s not stopping with robotaxis; there’s a story beyond that with humanoid robots, and our $2,600 number has nothing for humanoid robots. We just thought it’d be an investment, period,” she added.
In June 2024, Ark Invest issued a $2,600 price target for Tesla, which Wood reaffirmed in a March Bloomberg interview, projecting the stock to reach this level within five years. She told Bartlett that Tesla’s Optimus robots would drive productivity gains and create new revenue streams.
Elon Musk echoed Wood’s optimism in a CNBC interview last month.
“We expect to have thousands of Optimus robots working in Tesla factories by the end of this year, beginning this fall. And we expect to scale Optimus up faster than any product, I think, in history to get to millions of units per year as soon as possible,” Musk said.
Tesla’s stock has faced volatility lately, hitting a peak closing price of $479 in December after President Donald Trump’s election win. However, Musk’s involvement with the White House DOGE office triggered protests and boycotts, contributing to a stock decline of over 40% from mid-December highs by March.
The volatility in Tesla stock alarmed investors, who urged Musk to refocus on the company. In a May earnings call, Musk responded, stating he would be “scaling down his involvement with DOGE to focus on Tesla.” Through it all, Cathie Wood and Ark Invest maintained their faith in Tesla. Wood, in particular, predicted that the “brand damage” Tesla experienced earlier this year would not be long term.
Despite recent fluctuations, Wood’s confidence in Tesla underscores its potential to redefine industries through AI and robotics. As Musk shifts his focus back to Tesla, the company’s advancements in Optimus and other innovations could drive it toward Wood’s ambitious $2,600 target, positioning Tesla as a leader in the evolving tech landscape.
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