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Shares of Lucid Group, Inc. tumbled more than 13% on Wednesday as investors reacted to the unexpected departure of Peter Rawlinson as CEO, a move that has raised fresh concerns about the future of the struggling electric vehicle (EV) maker.
BofA Securities downgraded Lucid to 'Underperform' from 'Neutral' and slashed its price target to $1 from $3, following the leadership shakeup announced alongside upbeat fourth-quarter results.
According to the research firm, Rawlinson's exit is "much more consequential than understood by the market," with potential ramifications for product development, consumer demand, and future funding prospects.
BofA also lowered its estimates for Lucid's future production volumes, citing Rawlinson's pivotal role in shaping the company's current and upcoming vehicle lineup and its proprietary powertrain technology.
Despite the sharp selloff, retail investors on Stocktwits appeared unfazed, with sentiment toward the stock turning even more 'extremely bullish' than the previous day.
Message volume jumped 25% as some traders downplayed Rawlinson's exit, while others speculated on upcoming institutional filings that could reveal how major funds are positioning themselves.
Some investors argued that Lucid's leadership needed a shakeup, pointing to the company's lack of mainstream advertising and sluggish execution as key reasons for its struggles.
Lucid's financial position has been a major point of concern for analysts, with some highlighting its ongoing cash burn and the likelihood of further capital raises.
The company reported $1.6 billion in cash and cash equivalents as of Dec. 31, 2024, a slight increase from $1.36 billion a year earlier.
However, its long-term sustainability remains in question with persistent losses and operational challenges.
Saudi Arabia's Public Investment Fund (PIF), which has backed Lucid since April 2019, remains the company's largest shareholder with a 58% stake.
Lucid shares have dropped more than 25% in 2025 and plunged nearly 80% since going public via a SPAC merger in 2020, reflecting deep skepticism over its ability to compete in an increasingly crowded and cutthroat EV market.
The stock was up more than 1.5% in Wednesday's after-hours trading.
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