Lucid Group, Inc. (NASDAQ:LCID) is one of the best WallStreetBets stocks to buy according to analysts. On February 25, Tom Narayan of RBC Capital maintained his Hold rating on the Lucid Group, Inc. (NASDAQ:LCID) stock, assigning a price target of $10. This comes after the company announced on February 20 that it was planning to cut around 12% of its workforce. This move is part of the company’s broader efforts to improve profitability. LCID is ramping up production of its Gravity SUV and is also preparing to launch a $50,000 mid-sized EV before the end of the year.
The California-based automaker said that the job cuts are intended to optimize resources and improve operational effectiveness.
According to a memo seen by Reuters, CEO Marc Winterhoff said:
We are streamlining our organization so we can operate with greater efficiency and deliver on our commitments to gross margin improvement and long-term growth.
The layoff could affect more than 800 employees, although those in logistics, manufacturing, and quality are reportedly not affected. The company also confirmed that it will support affected employees by providing continued health benefits, severance packages, and transition assistance during this period. However, it did not disclose the total costs associated with the workforce reductions.
Prior to the layoff announcement, Tom Narayan had reiterated a Hold rating while lowering the firm’s price target on Lucid Group, Inc. (NASDAQ:LCID) from $20 to $14 on January 13.
Lucid Group, Inc. (NASDAQ:LCID) manufactures, designs, engineers, and sells EV powertrains, electric vehicles (EV), and battery systems. The company is a subsidiary of Ayar Third Investment Company and is based in Newark, California.
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