It's been an eventful week for investors in Lucid Group (LCID -1.12%). The electric vehicle (EV) stock was already tanking ahead of earnings after getting a massive analyst downgrade when it dealt a big blow to investor confidence by announcing its CEO's sudden departure. That overshadowed Lucid's big production guidance for 2025, and the stock plunged this week -- it was trading 27% lower through Friday noon, according to data provided by S&P Global Market Intelligence. Here's all you need to know.

Lucid has a new CEO

Lucid's fourth-quarter revenue surged 49% year over year to $234.4 million, and the company narrowed its net loss to $0.22 per share from $0.29 a share during the quarter. 2024 is a "transformational year" for Lucid, according to interim CEO Marc Winterhoff -- "interim" because alongside its numbers, Lucid also announced the departure of its CEO, Peter Rawlinson, and said it is looking for a new CEO while Winterhoff spearheads the company.

As is often the case, the abrupt leadership change seems to have spooked investors.

Be cautious about Lucid stock

Lucid stock took a big hit earlier this week, even before it announced its numbers or a new CEO, after Redburn Atlantic analyst Tobias Beith slashed the stock's price target to only $1.13 a share from $3.50 per share. Beith believes Lucid will have to significantly boost volumes for its to-be-launched midsize platform to retain its cost advantage and vehicle efficiency, which will mean significant cash outflows for the company. Beith is also not too optimistic about Gravity SUV gross margins. Lucid recently started delivering the Gravity SUV and is betting heavily on it for growth.

Lucid expects to more than double its production to 20,000 EVs in 2025, but investors aren't convinced given Lucid's poor execution history and the uncertainty that comes with a new leader at the helm.