Citi reaffirmed its Neutral rating and $8.00 price target for Lucid Group (NASDAQ:LCID). In their analysis, Citi noted that Lucid reported Q2 deliveries of 1,400 units, which remained flat compared to the previous quarter. This fell short of the analysts’ expectation of 1,800 units. Additionally, production for the quarter totaled 2,200 units, slightly lower than the 2,300 units in the previous quarter. As a result, shares dropped more than 11% intra-day today.
Considering the recent surge in the stock’s value, the analysts understand the pressure the company is facing due to the significant shortfall in Q2 deliveries and the widening gap between production and delivery. The analysts believe that this disappointing demand in Q2 does not necessarily reflect a broader trend in the adoption of electric vehicles (EVs), but it will likely increase scrutiny on the timing of the Gravity launch, potential new lower-priced Air trims, and Lucid’s overall branding and marketing efforts.