Wall Street Bulls Turn to Lucid, Betting a Tesla Rival’s Rout Is Overdone

Lucid Group, widely seen as one of Tesla’s most direct competitors in the premium electric-vehicle market, has been battered by months of weak sentiment and ongoing financial pressure. In a report published by Yahoo Finance, the company’s stock was described as down roughly 99% and valued at a market capitalization of about $2 billion, reflecting how severely investors have repriced the business.

The same coverage frames a contrasting view on forward upside, saying Wall Street expects a potential surge of about 90% for the shares. The bullish stance, as portrayed in the report, hinges on the idea that the sell-off has been “overdone,” meaning the market may already be discounting a worst-case path more aggressively than future results will justify.

Lucid has not had an easy stretch, according to the report, with “losses” still “piling up.” That language points to continued operating pressure, which matters for any EV manufacturer because cash burn can be persistent when manufacturing scale is ramping, product cycles are underway, and spending on engineering and operations has to keep pace with growth targets.

The report also characterizes Lucid’s situation as a “cash crunch,” a phrase that typically indicates tight liquidity and elevated risk around runway, refinancing, or the cost of capital. In such environments, share price movements can be driven as much by financing expectations as by product demand, because investors are trying to estimate whether additional funding is needed sooner than anticipated and at what terms.

Still, Yahoo Finance’s framing suggests some investors are shifting from near-term stress toward valuation. When a stock has fallen sharply, even modest improvements in expectations can create large percentage moves. That is consistent with how analysts often respond to distressed names: they may see limited incremental downside if the market has already priced in dilution and liquidity risk, and then focus on whether results can improve enough to justify higher multiples.