Lucid Motors shares jump 14% after Morgan Stanley upgrade

Shares of American electric vehicle manufacturer Lucid Motors jumped more than 14% in early trading Tuesday following an upgrade from Morgan Stanley analyst Adam Jonas.

The analyst pointed to a more balanced risk-reward profile and Lucid’s potential to leverage AI strategies through strategic and sovereign partnerships.

While maintaining its $3.00 price target, which implies a 39% upside from Monday’s closing price, Morgan Stanley highlighted the potential for an upside scenario that could see Lucid shares rise to $10.

In his note, Jonas acknowledged that Lucid’s fourth-quarter 2024 results were largely in line with negative expectations, leaving limited room for further downside surprises.

However, he noted that leadership changes and a potential shift in the company’s outlook are a bullish catalyst.