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Lucid Group Faces Challenges Amid Price Target Cuts and Q3 Earnings Miss

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Updated 11/12/2025, 11:33 am ET | 5 min
Lucid Group Faces Challenges Amid Price Target Cuts and Q3 Earnings Miss Thumbnail

In this article Last trade Dec, 05 7:44 PM

  • LCID-5.44%
    LCID - NYSELucid Group Inc.
    $13.38-0.77 (-5.44%)
    Volume:  9.37M
    Float:  116.70M
    $13.31Day Low/High$14.26

Lucid Group Inc. sees stocks trading down by -7.45% amid concerns over company performance and market instability.

  • Baird reduced Lucid’s price target to $17, doubting the Q3 output. Still, a Neutral stance is maintained amid uncertain financial conditions.

  • CFRA retained a strong sell opinion after Lucid’s Q3 report underperformed forecasts. There are worries over liquidity and cash flow even with extra backing from big shareholders.

  • Earnings didn’t meet aims with EPS at -$2.65, contrasting a -$2.13 target. Despite a 68% revenue boost, results lagged by $16M, and production targets were removed without new guidance.

Candlestick Chart

Live Update At 11:32:49 EST: On Wednesday, November 12, 2025 Lucid Group Inc. stock [NASDAQ: LCID] is trending down by -7.45%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Lucid Group recently faced a roller coaster of financial results. The revenue climbed by a significant 68%, reaching $336.58M, but even this growth missed expectations significantly, trailing the target by $16M. Notably, the EPS dropped to -$2.65, falling short of the anticipated -$2.13. Additionally, the company withdrew its production guidance, leaving investors in suspense. These results highlight substantial hurdles for Lucid, despite achieving some growth.

Lucid’s key financial metrics highlight further struggles. The company shows negative profitability indicators, such as an EBIT margin of -209.2%, which is not encouraging for potential investors. Revenue has been growing, but total expenses outpaced this growth significantly, reaching just over $1.27B. While some firms remain neutral, analysts have made stark warnings regarding cash flow and balance sheet pressure.

From a financial structure standpoint, the total liabilities stand at $5.1B against a total equity of $1.8B, pointing to a leverage ratio of 4.9. Such figures indicate extensive borrowing, which tends to be risky if cash flows are weak. In balance sheets, notable losses relate to asset turnover and leverage, further hitting investor confidence.

Market Reactions and Analysis

Lucid Group’s latest financial release caught many by surprise. Analysts swiftly reacted, with some lowering their price targets and maintaining sell ratings. Halper Sadeh LLC’s legal inquiry into fiduciary breaches by Lucid’s leaders compounds this situation, stirring potential governance reforms or financial repayments. This legal angle has prompted investor nervousness, highlighting possible management accountability issues.

Meanwhile, the shift in Lucid’s stock price reflects the market sentiment. Analysis of key ratios indicates significant constraints on profitability, with a gross margin of -97.9%. Such weak financials make the company less attractive in the current competitive market, thus prompting a tepid outlook.

Beyond Lucid’s inner workings, the market seemed perturbed by CFRA’s strong sell comment, reflecting on earnings and cash flow struggles despite receiving support from major shareholders. Investors are indeed cautious, weighing these reports against potential future gains from ongoing liquidity provisions.

Recent stock movements show volatility. Within less than a week, the stock opened at a high of $17.75, only to slide to a close of $15.96. This instability indicates investor hesitation sparked by ongoing headwinds in performance delivery amidst adverse sentiments in news articles.

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Conclusion

Lucid Group currently dances on the precipice of financial uncertainty. Its latest quarterly results stand in stark contrast to expectations, with reduced price targets and a stern sell opinion undermining confidence. Furthermore, looming legal investigations add layers of apprehension about governance. While some see hope in liquidity support, the broader trading consensus leans towards caution. As millionaire penny stock trader and teacher Tim Sykes says, “Cut losses quickly, let profits ride, and don’t overtrade.” This mindset resonates with current sentiments, emphasizing the need for strategic decision-making amidst turbulent times for Lucid.

Moving forward, the focus is on Lucid’s ability to rectify financial shortcomings and establish stronger internal safeguards. These corrective actions could enhance market perception, reinvigorate trader interest, and navigate the company toward a more stable, profitable horizon. Resilience, strategic shifts, and transparent leadership will be vital for Lucid to regain footing in the ever-evolving EV market landscape.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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In this article (YTD Performance)

  • LCID-55.56%
    LCID - NYSELucid Group Inc.
    $13.38-0.77 (-5.44%)
    Volume:  9.37M
    Float:  116.70M
    $13.31Day Low/High$14.26

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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