Lucid Group Inc: Hitting Reset

Research evidence excerpt

M

Idea

August 5, 2026 03:57 AM GMT

Morgan Stanley & Co. LLC

Lucid Group Inc | North America

Andrew S Percoco

Equity Analyst

Hitting Reset

Daniela M Haigian

Equity Analyst

Jahvonte G Bain

AlphaSignals Earnings Reaction

Research Associate

Unchanged

Meaningful shortfall

Modest revision lower

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Katherine A Bennorth

Research Associate

Source: Company data, Morgan Stanley Research

Lucid’s new CEO is pressing reset, focusing on cash preservation,

quality and execution, but lower 2H26 production, a long road to

profitability, and elevated funding risk keep us UW. $5 price

target is unchanged.

Lucid Group Inc (LCID.O, LCID US)

Autos & Shared Mobility | United States of America

Two months into the job, Lucid's new CEO Silvio Napoli opened the 2Q earnings

Stock Rating

Industry View

Price target

Shr price, close (Aug 4, 2026)

Mkt cap, curr (mm)

52-Week Range

call with a blunt message: missed commitments, products launched before they

Fiscal Year Ending

12/25 12/26e 12/27e 12/28e

were ready for market, under-investment in service, and slow response to quality

EPS ($)**

Prior EPS ($)**

P/E

EPS ($)§

Div yld (%)

(10.09) (10.60)

- (9.98)

NM

(10.00) (9.66)

issues has created significant headwinds in the company's path to profitability. The

fix is concentrated around three fundamentals (cash and cost, customer and quality,

culture and team) and four must-win projects: (i) deliver $1.4bn of cash-flow

improvements, (ii) execute the Uber/Nuro robotaxi partnership, (iii) complete AMP2 factory, and (iv) scale the Midsize platform.

Underweight

In-Line

$5.00

$7.78

$2,529

$25.23-2.37

(6.14)

(5.72)

NM

(5.84)

(4.41)

(5.20)

NM

(3.84)

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

§ = Consensus data is provided by Refinitiv Estimates

e = Morgan Stanley Research estimates

$1.4bn of targeted cash flow improvement in 2H26. The expected improvement is

Quarterly EPS ($)

driven by three main factors (i) $600-$800m of inventory conversion, (ii) $500m

Quarter

2025

2026e 2026e

Prior Current

…