While the S&P 500 and Dow Jones Industrial Average are both driving higher to start the week, shares of Lucid Group(NASDAQ: LCID) are not heading in the same direction. Instead, investors are sending the electric vehicle (EV) manufacturer's stock lower in response to an analyst's lackluster take on it.
As of 11:28 a.m. ET, shares of Lucid are down 5.5%.
Gravity risks might prevent Lucid stock from flying higher
Resuming coverage on Lucid stock, Citigroup has assigned a neutral rating and a $2.90 price target. According to thefly.com, Citigroup analyst Itay Michaeli is impressed with the company's new luxury SUV, the Gravity, but sees notable risk with the company's attempt to stay on schedule and begin production of the vehicle in late 2024.
Citigroup's perspective on Lucid stock is considerably less auspicious than what it had been last summer. In August, Michaeli had assigned it a $7.50 price target.
After the Air, the Gravity will be the second model that Lucid offers customers. The company also plans on starting production of a midsize vehicle in 2026.
Should EV investors power their portfolios with Lucid stock?
Lucid investors haven't found a lot to celebrate so far in 2024. With the company encountering a variety of challenges over the past few months, shares have fallen more than 44% year to date.
Investors should keep in mind that analysts often have shorter time horizons than the long-term holding periods that The Motley Fool favors. Therefore, it's best not to place too much emphasis on Citigroup's price target.
Instead, investors who are considering buying Lucid stock should dig deeper into the company, paying particular attention to what it has to report when it announces first-quarter 2024 financial results on May 6.
In the meantime, they can also kick the tires on some other EV stocks to see if they represent more attractive opportunities.
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
