The Lucid Gravity is displayed during the 2023 Los Angeles Auto Show at the Los Angeles Convention Center on November 24, 2023 in Los Angeles, California. This year’s edition of the Los Angeles Auto Show includes a range of new SUV models.
Josh Lefkowitz | Getty Images News | Getty Images
Lucid Group missed Wall Street’s second-quarter expectations as the electric vehicle manufacturer conducts an “operational reset” amid leadership changes and cost-cutting efforts.
The company is also delaying its upcoming midsize vehicle that was expected to launch at the end of this year until “most likely” the second half of next year, Lucid CEO Silvio Napoli told CNBC on Tuesday.
“This is my commitment to the company, to our shareholders, and for customers, is they’re going to be structured, complete when they launch,” he said, alluding to rushed prior launches that led to quality issues.
Here’s how the company performed in the second quarter compared with average estimates compiled by LSEG:
- Loss per share: $3.30 vs. a loss of $2.46 expected
- Revenue: $405 million vs. $416 million expected
The company did not release updated 2026 guidance. Napoli, who started leading the automaker in June, previously suspended production expectations amid a reevaluation of Lucid’s business operations.
He told CNBC the company is “not ready” to give such guidance as Lucid resets investor expectations and has a new, incoming leadership team. Lucid also reduced production at its U.S. plant in Arizona from two shifts to one in June.
“I want it to be anchored in solid data, and most of all, I want a guidance that I’m confident Lucid will be able to deliver on and possibly even do better than that. This takes time,” he said. “I wanted to make sure that we align the reality with consensus, which is today based on outdated business model.”
The company did release broad details of an “operational reset” or “transformation program” that includes identifying $1.4 billion in cash flow improvement opportunities this year.
They include approximately $600 million to $800 million in vehicle inventory, $500 million in capital expenditures, and $200 million in operating expenses, the company said.
In addition to the cost-cutting, Lucid said the plan will broadly focus on three key areas: “cash and cost,” “customer and quality” and “culture and team.”
More specifically, the company said its efforts will focus on its robotaxi program with Uber and Nuro, a factory that’s under construction in Saudi Arabia and its upcoming midsize vehicle. Lucid called the robotaxi initiative a “top priority.”
Lucid, Rivian and Tesla stocks
Lucid, which reported $3 billion in total liquidity to end the second quarter, said the actions and its current financials are “expected to provide sufficient liquidity runway well into 2027.”
“Silvio and his leadership team are transforming the company, and the Board stands firmly behind their actions,” Lucid Chairman Turqi Alnowaiser said in a release.
The missed results and comments come weeks after Lucid denied an online report that it was considering bankruptcy or taking the company private.
The report caused shares of the company to plummet. The stock recovered some of those losses, but remains off nearly 30% in 2026.
Lucid’s second-quarter results included a net loss of more than $1 billion compared to a loss of $539.4 million during the second quarter of last year. The company reported an adjusted loss of $901.1 million, or $3.30 per share, compared with a loss of $632.1 million, or $2.80 per share, a year earlier.
The losses were on production of 4,774 vehicles, up 24% year-over-year, and deliveries of 3,953 vehicles, up 19%, during the second quarter. The company currently offers the Air sedan and Gravity SUV that start at roughly $70,000 and $80,000, respectively.
Napoli, who formerly led an escalator and elevator manufacturer, replaced interim CEO Marc Winterhoff on June 1. Winterhoff remained with the company until late June as Napoli put together a new leadership team.
