What happened

Maintaining the downward momentum that resulted in a decline of more than 5% yesterday, shares of Lucid (LCID -5.54%) are down 4.2% as of 11:36 a.m. ET.

Besides an analyst's bearish take on the stock, investors are continuing to wrestle with the EV company's apparent demand problem -- something that seems even more disconcerting when considering how EV peers are not encountering the same issue.

So what

Maintaining a buy rating on the stock, Itay Michaeli, a Citigroup analyst, lowered the price target on Lucid's stock to $11.50 from $12. The new price target implies upside of 33% upside from where shares ended after yesterday's trading session.

While the reduced price target is not severe, it reflects a growing consensus among Wall Street that shares of Lucid have less room to run than other EV stocks. On Tuesday, for example, R.F. Lafferty set a $15 price target for shares of Fisker, which implies upside of more than 110% from yesterday's closing price.

Another factor weighing the stock down is news from EV rival Polestar. While Lucid recently reported declining demand, Polestar reported today that it delivered 51,491 vehicles in 2022, representing a year-over-year increase of 80%, and it forecasts vehicle deliveries to rise 60% in 2023.

And Polestar isn't alone. Fisker reported earlier this week that customer reservations have climbed since October.

Now what

While the analyst's reduced price target is pressuring Lucid's stock today, the growing interest that rival EV companies are enjoying is of much greater concern. Lucid may have designed a great EV, but if car buyers aren't interested in getting behind the wheel, the company is looking at a future filled with potholes.