Lucid Motors stock rose 12.3% after upgrade

Lucid Motors' stock saw a big jump after a rating upgrade today. Shares rose by 12.3% this morning. However, the luxury electric vehicle maker’s stock is still down nearly 20% since the start of the year. Analyst Adam Jonas from Morgan Stanley upgraded his view on Lucid but kept the price target at $3 per share. This target suggests about a 40% increase from Monday's closing price. Jonas believes Lucid's stock has fallen too far, but he is mainly aligning with its previous decline. A significant change for Lucid is the departure of its long-standing CEO, Peter Rawlinson. Jonas thinks new management can help the company tap into artificial intelligence (AI) to enhance its technology. Although Lucid’s battery technology is top-notch, it does not yet excel in advanced driving tech. Jonas points out that Lucid’s relationship with the Saudi Arabian government, which is the majority shareholder, might help in forming AI partnerships. This could boost sales both in the U.S. and internationally. Additionally, Lucid has launched a new Gravity SUV and aims to more than double production in 2025. Despite the positive note from Jonas, investors should be cautious. Speculating on AI technology does not guarantee a buy recommendation, and Jonas advises to hold the stock for now.