Lucid Group Inc (LCID) shares surged 5.09% in Tuesday's pre-market trading session, following a notable upgrade from Morgan Stanley and speculation about the company's artificial intelligence (AI) prospects.

The stock's upward movement was primarily driven by Morgan Stanley's decision to upgrade Lucid from "underweight" to "equal-weight." Analyst Adam Jonas maintained a $3 price target for the stock, citing potential opportunities for Lucid to play a role in the emerging AI theme. Jonas suggested that under new leadership, Lucid could execute an AI strategy leveraging strategic partnerships within the context of developing onshore manufacturing capacity.

The upgrade comes at a crucial time for Lucid, as the electric vehicle maker recently announced a leadership change. With the appointment of Marc Winterhoff as the new CEO, replacing founder Peter Rawlinson, investors are hopeful for a reinvigoration of the company's strategy. The potential for Lucid to develop U.S.-made vehicles using AI technology, either developed domestically or through international partnerships, has piqued market interest. This development could potentially boost the company's vehicle sales and competitive position in the evolving EV market.