After initially rising to a high of $28.39 per share on Wednesday, Lucid Group's (NASDAQ: LCID) stock closed the day at $26.28.
However, the electric vehicle company's shares have given up those gains and more on Thursday, down 3.84% at $25.27.
The decline in value has come after Morgan Stanley analyst Adam Jonas attended Lucid's vehicle manufacturing facility in Casa Grande, Arizona and spoke with Lucid's management team.
The end of the event saw Lucid's management confirm it will officially start production of the Lucid Air and plans to deliver the Dream Edition to customers beginning in late October.
Speaking on the visit, Jonas said that the beginning of production and deliveries is “an important event for the company,” but others need to “take it easy with the expectations a bit and give this company a chance to execute.”
The Morgan Stanley analyst believes Lucid will need to raise additional capital for Phase 3, where production capacity will expand to 365,000 vehicles.
As a result, Jonas kept his underweight rating and $2 price target on the stock due to the company needing to execute according to expectations and the competition in the electric vehicle market.
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