Production Guidance

FY 2025

20,000 vehicles " "

18,000 to 20,000 vehicles " "

lowered

Capital Expenditures (CapEx)

FY 2025

$1.4 billion " "

$1.1 billion to $1.2 billion " "

lowered

Tariff Impact on Margins

FY 2025

8% to 15% "

Lower end of 8% to 15% " "

lowered

Lucid Gravity Demand

Q1 2025 highlighted strong demand with over three-quarters of orders from new customers and high conversion at test events ( " " " ); Q4 2024 emphasized record order momentum and a strong new customer base despite limited marketing ( " " " " " ); Q3 2024 noted a compelling value proposition and latent demand ( " " ).

Q2 2025 reaffirmed “consistent strong demand” with nearly doubled daily order rates once customers experienced Lucid Gravity, citing supply constraints rather than demand issues and bolstered by a new Gravity campaign and strategic collaborations ( " " ).

Demand remains robust with continuous customer interest, now supported by enhanced marketing and strategic partnerships.

Midsize Platform Development

Q3 2024, Q4 2024, and Q1 2025 consistently discussed the platform’s advanced engineering phase and a production start scheduled for late 2026, with emphasis on cost-conscious design and the Atlas drive unit’s development ( " " " " " " ).

Q2 2025 reiterated that production for the midsize platform remains scheduled for late 2026 with on‐track development of the Atlas drive unit and focused sourcing and validation activities ( " " " ).

The timeline and strategic focus remain consistent with robust execution plans; sentiment is steady and forward‐looking.

Margin Dynamics and Cost Management

Q3 2024 reported sequential improvements in gross margin due to ongoing cost reduction and scaling efficiencies ( " " " ); Q4 2024 noted significant improvements year‐over‐year and stable production-driven cost reductions ( " " " ); Q1 2025 emphasized margin improvement via cost transformation and scale, even as tariff pressures were acknowledged ( " " " ).

Q2 2025 described margin pressures with a reported negative gross margin affected by tariffs, yet noted material cost optimization, localized sourcing and scaling strategies to ultimately drive improvement ( " " " ).

Margin challenges persist—tariff pressures have an immediate negative impact while cost management and scale efforts continue to offer a path to improvement.

Production, Delivery, and Supply Chain Execution

Q3 2024 highlighted production of 1,805 vehicles with record deliveries and improvements in factory efficiency ( " " " ); Q4 2024 reported record increases in production and deliveries alongside strategic inventory management ( " " ); Q1 2025 saw increasing production and delivery numbers, while modest supply chain bottlenecks were addressed ( " " " " ).

Q2 2025 reported significant production increases (targeting 18,000–20,000 vehicles in 2025) with strong record deliveries and effective mitigation of supply chain issues (e.g. quickly integrating substitute magnets) ( " " " ).

Production scaling remains a priority with continued operational resilience; supply chain challenges are being effectively managed to support growing volumes.

Strategic Partnerships and Technology Licensing

Q3 2024 emphasized long-term partnerships (e.g. with PIF) and early steps into technology licensing with Atlas drive unit technology ( " " " " ); Q4 2024 mentioned ongoing discussions with large OEMs and leveraging existing technologies like the Zeus powertrain ( " " " ); Q1 2025 discussed partnerships such as the KAUST MOU and OEM technology licensing interest, including joint manufacturing opportunities ( " " " ).

Q2 2025 announced a significant strategic partnership with Uber and Neuro for a premium robotaxi initiative — a deal that not only validates their Gravity vehicle architecture but also expands licensing opportunities; further discussions with other partners remain in progress ( " " " " " ).

There is a clear shift toward broader strategic partnerships that exploit licensing opportunities and open new markets (e.g. robotaxi), indicating an expanding strategic scope.

Technical and Quality Challenges

Q3 2024 had minimal focus on these, though quality was emphasized by leadership as critical during ramp-ups ( " ); Q4 2024 stressed maintaining quality with a deliberate ramp for Lucid Gravity and technology advancements ( " ); Q1 2025 mentioned overcoming supply chain and tariff challenges with a focus on quality and operational discipline ( " " ).

Q2 2025 focused on overcoming production bottlenecks—citing rapid resolution of supply challenges through vertical integration—while also noting enhancements such as software updates and part communization for improved quality ( " " " ).

Focus on quality remains high; while technical and supply chain challenges continue, the emphasis is on rapid corrective action and technological enhancements, reflecting a stable quality outlook.

Product Roadmap Uncertainty

Q1 2025 acknowledged delays related to the midsize platform and modest supply chain issues impacting Lucid Gravity timelines ( " " " ); Q4 2024 and Q3 2024 did not indicate significant delays, reinforcing a clear roadmap with production targets set for late 2026 and a strong Gravity rollout ( " " " ).

Q2 2025 noted that although production for Lucid Gravity is behind desired targets, most supply chain issues have been resolved and the midsize platform timeline remains unchanged, emphasizing resolution over delay ( " " " ).

While some uncertainties persist regarding short‐term production ramp, overall product roadmap milestones remain largely intact with issues being actively addressed.

Leadership Stability and Management Changes

Q4 2024 detailed a major leadership transition with Marc Winterhoff taking over as Interim CEO and Taoufiq Boussaid as new CFO, with assurances on team continuity ( " " " ); Q1 2025 reiterated the presence of Interim CEO Marc Winterhoff and newly appointed CFO, and Q3 2024 did not mention leadership changes ( " " " ).

Q2 2025 continued with the interim leadership from previous quarters, mentioning Interim CEO Marc Winterhoff and CFO Taoufiq Boussaid, without controversy or further changes ( " " ).

There is continuity following a leadership transition; the new management appears stable and is effectively guiding strategic initiatives.

Capital Requirements and Funding Challenges

Q3 2024 featured a successful capital raise of over $1.75 billion, reinforcing a strong liquidity position into 2026 ( " " " ); Q4 2024 reported over $6 billion in liquidity with renewed credit facilities and clear capex guidance ( " ); Q1 2025 detailed liquidity improvement moves including convertible senior notes and upsized credit arrangements ( " " " ).

Q2 2025 reported strong liquidity with $3.6 billion in cash and investments alongside a revised 2025 CapEx guidance and plans for a 1-for-10 reverse stock split, demonstrating continued focus on capital discipline and funding resiliency ( " " " ).

Capital health remains robust across periods; while funding challenges such as high CapEx persist, proactive measures (e.g. reverse split, credit facility upsizing) signal a disciplined financial strategy.

Global Expansion and Production Scaling Initiatives

Q3 2024 and Q4 2024 focused on scaling production with record vehicle outputs and expanding manufacturing in both Arizona and Saudi Arabia ( " " " ); Q1 2025 detailed plans to boost production volumes to 20,000 vehicles in 2025 and emphasized expanding production capacity through U.S. and Saudi facilities ( " " " ).

Q2 2025 reaffirmed global expansion goals by not only aiming for higher production volumes but also enhancing domestic sourcing (e.g. new graphite agreements) and leveraging U.S.-based manufacturing for greater supply chain resilience ( " " " ).

Global expansion and scaling initiatives remain a central theme, with consistent investments in production capacity and domestic sourcing underscoring a long-term growth focus.