Lucid Group falls 4.8% as Rivian capital raise spurs scrutiny

Lucid Group Inc. fell 4.8% to $5.55, its lowest close in a month, after Rivian Automotive Inc.'s $1.5 billion capital raise turned investor attention to the EV maker's own funding needs and reliance on Saudi Arabian backing.

Lucid carries a consensus rating of Reduce from Wall Street, with a mean price target of $9.67 implying roughly 74% upside from current levels, according to MarketBeat data. Evercore set a $6.00 price objective, while RBC Capital Markets lowered its target to $8.00 from $10.00 with a sector perform rating. Cantor Fitzgerald maintained a neutral rating with a $14.00 target. Of 11 analysts covering the stock, only one rates it a Buy, seven rate it Hold and three rate it Sell.

Trading volume reached 8.1 million shares, 34% below the 20-day average of 12.3 million. The stock has lost 34% over the past year and trades 35% below its 50-day moving average of $5.82. The company's market capitalization stands at $2.17 billion, with a debt-to-equity ratio of 3.00. Institutional investors hold 75% of shares.

Rivian's overnight stock offering, expected to raise about $1.5 billion, highlighted the capital-intensive nature of the EV industry and prompted investors to reassess Lucid's own cash position. Lucid could arguably be out of business had it not been for its close relationship with Saudi Arabia's Public Investment Fund, which is the company's largest shareholder and has provided capital across several investment rounds.

The selloff comes as Lucid scales back its European expansion amid persistently weak demand for its Air sedan and Gravity SUV. The company is cutting regional staff and shifting to a partner-led sales model using local dealers instead of company-owned studios. Launches in Spain and Austria have been pushed to 2027, while the U.K. launch slipped to early 2028. Registrations across Germany, the Netherlands, Switzerland and Norway totaled just 54 vehicles in the first quarter, down from 470 in all of 2025. In Norway, one of the world's most mature EV markets, Lucid has registered fewer than 40 vehicles since opening in Oslo in 2023.

Lucid recently announced leadership changes under Chief Executive Officer Silvio Napoli, including the appointment of Alexander De Bock as incoming chief financial officer. The company said the moves would halve the number of direct reports to the CEO and sharpen execution. Current CFO Taoufiq Boussaid will leave after supporting the second-quarter results.

The company still holds $4.7 billion in total liquidity, including $2 billion in undrawn capacity from its delayed draw term loan backed by the PIF. But with a securities class action lawsuit carrying a July 28 lead-plaintiff deadline and second-quarter results due Aug. 4, the pressure is on Lucid to show its Gravity SUV is gaining traction. The stock has risen 3% over the past four weeks but remains 35% below its 200-day moving average of $8.50.

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