Lucid Group Inc, a player in the electric vehicle market, has seen its stock price retreat on Friday despite a recent report featuring optimistic projections driven by backing from the Saudi Public Investment Fund (PIF). The stock's movements underscore the challenges Lucid is navigating within a demanding market atmosphere, even as fundamental endorsements appear robust.
The stock’s current weakness contrasts with earlier optimism. Shares rallied following Cantor Fitzgerald's report highlighting the PIF’s substantial commitment. With an investment exceeding $9 billion, the PIF holds majority control of Lucid, owning more than 50% of the company’s shares. This level of ownership implies a foundational support that could underpin Lucid’s financial stability and operational capacity moving forward.
Cantor Fitzgerald analyst Andres Sheppard emphasized that the PIF’s involvement transcends a mere financial transaction; it represents a strategic base of support likely to ease prevailing investor apprehensions about Lucid’s valuation. This confidence is punctuated by proposed plans to introduce a fleet exceeding 20,000 Lucid Gravity electric SUVs as robotaxis, targeted for deployment between late 2026 and early 2027.
Despite these promising signals, Lucid’s stock technicals reveal ongoing strain. Presently, shares hover about 1.2% above their 20-day simple moving average (SMA). However, they remain notably below other critical longer-term SMAs: 9.3% under the 50-day SMA, 31.1% below the 100-day SMA, and 44.2% shy of the 200-day SMA. These metrics indicate the stock’s price has been trending downward over multiple durations.
Looking at the stock’s yearly performance, Lucid’s shares have slumped by 58.75% over the past 12 months. This sizable decline situates the shares nearer to their 52-week lows rather than highs, highlighting the persistent difficulties the stock has encountered amid the broader market environment.
Technical momentum indicators present a mixed picture. The Relative Strength Index (RSI) stands at 49.33, placing it near neutral territory, neither overbought nor oversold. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is positioned above its signal line, suggesting a current bullish momentum. The interplay between a neutral RSI and a positive MACD suggests that while upward price movement is possible, investors should exercise caution and remain attentive to broader market signals.
Key technical resistance and support levels are apparent at $12.00 and $11.00 respectively, demarcating price boundaries investors may watch closely during trading sessions.
Market participants are directing attention toward Lucid’s forthcoming earnings report scheduled for February 24. Projected earnings per share (EPS) stand at -$2.57, reflecting a decline from -$2.20 compared to the previous year. Conversely, revenue forecasts indicate an anticipated increase, climbing to $468.45 million from $234.47 million year-over-year. These figures underline continuing operational investment alongside expanding sales efforts.
Analysts exhibit varied stances on Lucid’s prospects, reflected in recent revisions of price targets and ratings. Morgan Stanley reduced its rating to Underweight and decreased its price target to $10.00 as of December 8, 2025. Stifel maintained a Hold rating while lowering its target to $17.00 as of November 17, 2025. Cantor Fitzgerald assigned a Neutral rating and adjusted its price target downward to $21.00 on November 6, 2025. The consensus average price target stands at $25.70, indicating expectations of higher valuation over the medium term.
A broader assessment using Benzinga’s Edge scorecard reveals that Lucid Group holds a bearish momentum score of 1.23, suggesting underperformance compared to the wider market. This momentum weakness, despite institutional backing, signals the necessity for investors to exercise vigilance.
The stock is notably significant in certain exchange-traded funds (ETFs). It comprises 2.02% of the SPDR S&P Kensho Smart Mobility ETF (ticker HAIL) and an outsized 200.01% weighting in the GraniteShares 2x Long LCID Daily ETF (ticker LCDL). Due to this sizeable inclusion, substantial capital inflows or outflows in these ETFs could trigger forced buying or selling of Lucid shares, potentially exacerbating price volatility.
At the time of report publication, Lucid Group’s shares declined by approximately 1.39%, trading near $11.32 based on Benzinga Pro data. This drop reflects prevailing market hesitance despite long-term supportive developments.
In summary, Lucid Group’s strong institutional backing, particularly from the Saudi Public Investment Fund, and plans to launch a large-scale electric robotaxi fleet present compelling mid-to-long-term prospects. However, current stock performance is undermined by technical headwinds, mixed momentum indicators, and analyst caution. Investors remain watchful for upcoming quarterly earnings to assess the company’s trajectory amid these contrasting factors.