What occurred

Sustaining the downward momentum that resulted in a decline of greater than 5% yesterday, shares of Lucid (LCID -3.77%) are down 4.2% as of 11:36 a.m. ET.

In addition to an analyst’s bearish tackle the inventory, buyers are persevering with to wrestle with the EV firm’s obvious demand downside — one thing that appears much more disconcerting when contemplating how EV friends aren’t encountering the identical difficulty.

So what

Sustaining a purchase score on the inventory, Itay Michaeli, a Citigroup analyst, lowered the value goal on Lucid’s inventory to $11.50 from $12. The brand new value goal implies upside of 33% upside from the place shares ended after yesterday’s buying and selling session.

Whereas the lowered value goal shouldn’t be extreme, it displays a rising consensus amongst Wall Avenue that shares of Lucid have much less room to run than different EV shares. On Tuesday, for instance, R.F. Lafferty set a $15 value goal for shares of Fisker, which means upside of greater than 110% from yesterday’s closing value.

One other issue weighing the inventory down is information from EV rival Polestar. Whereas Lucid just lately reported declining demand, Polestar reported immediately that it delivered 51,491 autos in 2022, representing a year-over-year improve of 80%, and it forecasts car deliveries to rise 60% in 2023.

And Polestar is not alone. Fisker reported earlier this week that buyer reservations have climbed since October.

Now what

Whereas the analyst’s lowered value goal is pressuring Lucid’s inventory immediately, the rising curiosity that rival EV corporations are having fun with is of a lot higher concern. Lucid could have designed an awesome EV, but when automotive patrons aren’t excited by getting behind the wheel, the corporate is taking a look at a future full of potholes.