By Michael Elkins
Morgan Stanley reiterated an Underweight rating and $12.00 price target on Lucid Group (NASDAQ:LCID) after the electric vehicle company reported its 3Q delivery numbers. LCID announced it has delivered 1,398 units in 3Q vs. 679 in 2Q and MS of 1,500 units. The company reiterated its FY target of 6k to 7k units produced which supports Morgan Stanley’s FY delivery forecast of 6,039 units.
Morgan Stanley analysts wrote about Lucid Group in a note, saying “It is our working assumption that the relationship between the Kingdom of Saudi Arabia (KSA) and Lucid could extend beyond a controlling shareholder status.” In their opinion, the Public Investment Fund (PIF) stake in LCID represents a ‘seat at the table’ for the energy transition story that aligns with the KSA’s long-term economic and social reforms of Vision 2030.
They believe that investors should appreciate the potential for further expansion afforded the company through this relationship. The KSA has demonstrated its commitment through previously announced manufacturing plans and other activities.
The analysts continued in the note, saying that they believe “the ability for LCID to co-invest/support long-term infrastructure and supply chain development, as well as talent attraction and technology acquisition/partnership, are potentially enhanced by the guidance and support of the KSA.”