Lucid Group is expected by Baird to be held back by consumer pressures
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Baird started off coverage on Lucid Group (NASDAQ:LCID) with a Neutral rating and price target of $7.
Analyst Ben Kallo noted that the electric vehicle maker produces luxury EVs with best-in-class technology that enables higher range and better efficiency. Kallo pointed to LCID's advantage with its technology stack, which consists of an industry-leading drivetrain unit, modular battery pack, and Wunderbox charging system.
"LCIDâs combined tech stack allows for 4.74 miles/kWh making it one of the most efficient EVs on the market. Improvements in the motor, battery architecture, Wunderbox, and software lead to lower battery costs. We believe the cost advantages of in-house manufacturing and design will become more apparent as LCID scales its technology."
While LCID's performance is said to be among the best in the sector, Kallo warned that the high starting prices for models and niche market segment create a challenging near-term setup. The firm is looking for improved consumer health and progress in LCID's volume ramp to become more constructive on the EV stock.
Shares of Lucid Group (LCID) fell 3.33% in late morning trading on Wednesday to $6.09 amid broad selling pressure in the EV sector. The stock is now roughly flat for 2023 after running to over $12 early in February.

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