What happened
It's been a roller coaster week for shares of electric-vehicle (EV) maker Lucid Group (LCID -3.92%). The stock popped on Monday, tumbled on Tuesday, and accelerated again yesterday. So it should come as little surprise that shares are once again taking a U-turn and dipping lower today.
Unlike the reasons motivating investors earlier in the week, the catalyst for today's movement is bearish attention from Wall Street. As of 11:43 a.m. ET, shares of Lucid were down 6.6%.
So what
This morning, before the market opened, Morgan Stanley maintained its underweight rating on shares of Lucid Group and slashed its price target to $12 from $16. The new price target implies downside of a whopping 51% from where the stock closed yesterday: $24.58.
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While Morgan Stanley's pessimism about the stock is apparent, those who are skeptical of revisions to price targets might not be so moved. But its bearish perspective becomes even more striking when juxtaposed with Citigroup, which earlier in the week announced a buy rating and $45 price target (though it was a reduction from its earlier price target of $57).
Now what
With analysts seeming to rally around the idea that Lucid's stock is headed for headaches, it's not surprising that investors are exiting their positions today. But savvy investors recognize that Wall Street often has shorter investing horizons than the longer holding periods that The Motley Fool espouses, so the fact that analysts are slashing price targets should be taken with not one grain of salt, but several.
So EV investors who don't mind exercising patience have the ability to power their portfolios with this compelling growth stock at a more-attractive price today.
