There's a lot of red in the market today. The Nasdaq Composite index dropped as much as 3% Monday morning, and the S&P 500 index was lower by almost 2%. Yet Lucid Group (NASDAQ: LCID) stock is bucking that trend.
Shares of the luxury electric-vehicle (EV) maker jumped as much as 4.7%, even in the middle of all that red ink. As of 10:35 a.m. ET, Lucid stock was still holding onto a 3.1% gain. The gains came after one Wall Street analyst left a meeting with the company feeling good about its prospects.
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A new EV and CEO
Benchmark analyst Mickey Legg met with Lucid management late last week and came away impressed, according to reports. The meeting led the analyst to reiterate his buy rating on Lucid stock, along with a $5 price target. That would imply a gain of more than 130% from Friday's closing price.
Lucid surprised investors late last month when it announced that CEO and industry veteran Peter Rawlinson was stepping down from his role as Lucid's CEO. Chief Operating Officer Marc Winterhoff was named as the interim CEO.
In a new report released Friday, Legg wrote, "We spoke with [Lucid's] new interim CEO, Marc Winterhoff, and CFO, Taoufiq Boussaid, yesterday and came away confident in the new team's ability to grow sales and scale manufacturing through 2025."
Lucid plans to more than double production this year, versus 2024. It has launched its new Gravity luxury SUV and says it will produce about 20,000 EVs in 2025. Legg thinks a focus on ramping up production, along with the new-vehicle offering, will get investors more interested in Lucid stock this year.
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Howard Smith has positions in Lucid Group. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
