Lucid Group Inc (NASDAQ:LCID) shares plunged 9.2% on Wednesday morning following the unexpected resignation of CEO Peter Rawlinson and a subsequent downgrade by Bank of America.
Rawlinson, who has led the electric vehicle (EV) manufacturer since 2019, announced his immediate departure on Tuesday.
Chief operating officer Marc Winterhoff has been appointed as interim CEO while the company initiates a search for a permanent successor.
In response to Rawlinson's resignation, Bank of America downgraded Lucid's rating from "Neutral" to "Underperform" and slashed its price objective from $3 to $1. The bank expressed concerns that Rawlinson's departure could lead to stalled product development, dampened consumer demand, and jeopardized funding opportunities.
"We think the departure of Lucid's (LCID) founder, CEO, and CTO, Peter Rawlinson, is much more consequential than understood by the market,” analysts warned.
Bank of America noted that Rawlinson was instrumental in developing Lucid's vehicles and proprietary powertrain technology, and his exit may increase the likelihood of additional team departures.
Despite these challenges, Lucid reported fourth-quarter revenue of $234.5 million, surpassing Wall Street expectations. The company reported a non-GAAP loss per share of $0.22, narrower than analysts' estimates of a $0.25 loss.
Lucid produced 3,386 vehicles in the quarter, exceeding the estimated 2,904, while deliveries reached 3,099, ahead of the forecasted 2,637.
Looking ahead, the company provided full-year 2025 production guidance of 20,000 vehicles, more than double the 9,000 it produced in 2024.