More from Bank of America's downgrade:
In addition to leading the company, Peter Rawlinson was largely responsible for assembling the Lucid team, which may increase the likelihood of additional departures. We note that LCID in prior public filings stated that Rawlinson was a key member, and that it is “highly dependent on the services of Peter Rawlinson” who “is a significant influence on and driver of our technology development and business plan.”
Future funding becomes more precarious in our view, the fact that the current CEO is serving on an interim basis and that there is a brand-new CFO further complicates the potential of raising incremental funding. Note that at its current run-rate LCID has capital to continue operations until 2H:26, but will have to explore additional capital raises well before then.
Future product development impaired Future products may be delayed or never come to fruition, putting longer-term volumes at risk. For this reason, we cut our volume estimates, pushing out the timing of achieving positive gross profit.
We had been particularly optimistic about the Mid-size platform launch in 2026 (called the Space), which in our view would have helped the company achieve scale. However, the completion of that product and others in the future are highly suspect. Furthermore, given the current turmoil at the company, well informed consumers may opt to purchase other EVs, putting volumes at further risk."