Lucid Group, Inc. (NASDAQ:LCID) is one of the Best WallStreetBets Stocks to Buy According to Analysts. On February 25, RBC Capital’s Tom Narayan maintained his Hold rating on shares of Lucid Group, Inc. (NASDAQ:LCID), assigning a $10 price target. This comes after the company announced on February 20 that it planned to cut about 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 midsize electric vehicle before the end of the year.
The California-based automaker said the job cuts are aimed at optimizing resources and improving operational efficiency.
According to a memo seen by Reuters, CEO Marc Winterhoff said:
We are streamlining our organization so we can operate more efficiently 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 will reportedly not be affected. The company also confirmed that it will support affected employees by providing them with 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 company’s price target on Lucid Group, Inc. (NASDAQ:LCID) from $20 to $14 on January 13.
Lucid Group, Inc. (NASDAQ:LCID) manufactures, engineers, engineers and sells powertrains for electric vehicles, electric vehicles (EVs), and battery systems. The company is a subsidiary of Ayar Third Investment Company and is headquartered in Newark, California.
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