Tesla Permabull Adam Jonas Pukes on Lucid Group’s (LCID) Prospects With a $12 Price Target

Lucid Group (NASDAQ:LCID), the company that is about to formally enter the highly competitive EV market with its ultra-luxury Lucid Air electrical sedan, just received its first rating downgrade.

To wit, Morgan Stanley'due south Adam Jonas, known for his permabull stance on Tesla (NASDAQ:TSLA), has now initiated coverage on Lucid Group shares with an 'Underweight' rating and a $12 stock price target, respective to a 40 percent downside relative to yesterday's closing cost of $xx.06.

Jonas noted that the market was ascribing an "unusually high" probability of success to Lucid Group on the back of its $31 billion pre-revenue market place capitalization. While the analyst conceded that the company might occupy a sustainable niche in the highly competitive EV market, the road ahead would probable exist littered with "many obstacles."

$LCID short interest is $872M
43.77M shares shorted
eight.28 % SI% of Float
vii.65 % S3 SI% Float
3.32 % fee
Shares shorted downwardly -377K shs, worth $8M, -0.85 %, over the last week.
Shorts upwards +$263M in 2021 marking-to-market profits;
including -$5M on today's +0.threescore % move. movie.twitter.com/P10Nzg4UbA

— Ihor Dusaniwsky (@ihors3) September 13, 2021

Of class, today's development comes as the inquiry firm S3 Partners recently communicated that Lucid Grouping curt sellers have now extended their gains to $263 million as the company struggles to emerge from a persistent downtrend in the absence of key operational milestones, such equally the initiation of Lucid Air Dream Edition deliveries. Behave in mind that Lucid Group currently has a brusque interest of $872 meg.

Readers should note that Morgan Stanley is an outlier at this stage with respect to the prevailing sentiment around Lucid Group shares. Merely last calendar week, the company scored a bullish outlook from Citi and CFRA Inquiry.

While explaining the rationale backside his endorsement, Citi analyst Italy Michaeli observed that Lucid Grouping has the "necessary building blocks" for his bullish thesis, including solid EV tech credentials, years of development feel, brand momentum, and speed-to-market. The analyst so went on to note:

"[Lucid Group] resembles much of what we like virtually Tesla, but without the lofty 2030 share & FSD/AV outcomes that ane must underwrite."

In the aforementioned vein, CFRA Research analyst Garrett Nelson had noted last calendar week:

"With excellent specs on its forthcoming luxury EV models, strong balance sheet and management team, and [a] brand new factory in Arizona, LCID appears to cheque all the boxes of an industry newcomer with staying power."