Lucid Group Inc (NASDAQ: LCID) shares are soaring 5.26% in Friday's trading session, following a significant upgrade from Morgan Stanley. The electric vehicle maker's stock is gaining traction as investors react positively to the improved outlook and potential in AI integration.

Morgan Stanley analyst Adam Jonas upgraded Lucid from Underweight to Equal-weight on March 17, maintaining a $3 price target with a $10 bull case scenario. The upgrade cites Lucid's promising AI strategy and strategic alliances as key factors. Jonas highlighted the company's potential in developing domestic EV manufacturing as a platform for AI integration, suggesting that risks are now more balanced for the stock.

Lucid Group, which develops and sells electric vehicles, powertrains, and battery systems with in-house software, is now seen as better positioned to navigate geopolitical challenges. The analyst believes this could help the company secure capital and partnerships across both Western and Chinese markets. Additionally, recent leadership changes at Lucid are viewed positively, potentially contributing to a more optimistic outlook for the company's future performance.