Wall Street expects Tesla rival to surge 90% despite cash crunch

Wall Street is turning more constructive on Lucid despite persistent execution and balance-sheet risks. The article says LCID’s average 12-month price target is $9.75, implying nearly 90% upside from current levels, though analyst coverage remains cautious with mostly hold ratings. Lucid’s Q1 2026 revenue rose about 20% year over year to $282 million, but production of 5,500 vehicles outpaced deliveries of 3,093 due to a temporary stop-sale on the Gravity SUV. Margins remain deeply negative and the company reported about $1 billion in net loss, highlighting ongoing cash burn. Still, investors are watching three potential catalysts: a second Saudi factory, a lower-priced midsize EV platform, and an expanded Uber partnership for at least 35,000 robotaxi vehicles, now backed by a $500 million Uber investment. Lucid ended Q1 with about $700 million in cash but boosted pro forma liquidity to $4.7 billion after raising over $1 billion post-quarter, extending runway into the second half of 2027.