Lucid Group (LCID) rose 7.8% by 10:35 a.m. ET Monday without company-specific news, tracking a 10.4% gain in rival Rivian (RIVN) after UBS upgraded Rivian to buy, citing solid demand for its new R2 SUV and expected positive gross margins in Q1 2027. UBS also warned that Rivian will keep burning cash and will likely need to sell shares or take on debt to fund operations through at least 2029. The article argues Lucid is not Rivian: it still reports negative gross margins, burned $5.1 billion over the last 12 months, and had barely $760 million in cash at its last report. The author therefore cautions that even if UBS's view holds for Rivian, the same assumption should not be made for Lucid.
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