Should You Buy Lucid Group Stock While It’s Below $70?

It has been a rollercoaster year for Lucid Group (NASDAQ: LCID), with shares of the electric vehicle (EV) maker gyrating between $16 and $35. But one Wall Street analyst remains unfazed. He has a price target of $70 for Lucid stock. If you’re tracking electric car stocks, you’ll want to understand his thinking.

Mickey Legg is an analyst at Benchmark Company who has covered the EV space for several years. One of his top picks right now is Lucid Group. His $70 price target implies nearly 200% in potential upside. There are three factors right now that get him excited.

First, he believes electric vehicle sales in the U.S. will accelerate in 2025 and 2026. There are a few problems with this prediction. EV sales growth decelerated heavily from 2023 to 2024. In 2023, 1.2 million EVs were sold nationwide, a 46% increase versus the year before. But last year, just 1.3 million EVs were sold, a growth rate of only 7%. Additionally, the elimination of EV tax credits may hamper demand in the back half of 2025 through 2026 and beyond. Predicting an acceleration in EV sales, therefore, is a very bullish take.

But Legg’s thesis rests on more than just higher industrywide sales. He notes Lucid’s “advanced technology” as well as its “highly integrated manufacturing capabilities.” For years, Lucid has been pushing back against its positioning as a car manufacturer, instead pitching its capabilities as a technology provider. “I’d love it to be 20-80. Twenty percent doing cars, 80% licensing,” Lucid’s former CEO said earlier this year.

Lucid’s deal with Uber Technologies to supply it with 20,000 vehicles that will power its robotaxi division lends credence to this vision. Uber required high-tech vehicles to enable autonomous driving, and out of all the global manufacturers, it chose Lucid, investing $300 million directly into the company as well. So, while I don’t agree with Legg’s bullishness on EV sales, there is something to say about Lucid’s differentiated technology moving forward.

Another factor that Legg is excited about is Saudi Arabia’s huge stake in Lucid. The country’s sovereign wealth fund has repeatedly provided financing to keep Lucid afloat. The country also intends to take delivery of 100,000 Lucid vehicles from 2022 to 2032. This is a double-edged sword, however. As a majority investor, Saudi Arabia’s influence on Lucid is huge, and the country’s goals may not always align with what investors wish to see.