Executive Summary

Q2 revenue was $259.4M and GAAP diluted EPS was $(0.28); adjusted diluted EPS was $(0.24). Vehicles delivered rose to 3,309 (+38.2% YoY), and total liquidity ended the quarter at ~$4.86B .
Gross margin was deeply negative, pressured by inventory impairments and tariffs; cost of revenue was $531.8M vs $259.4M revenue (implying ~-105% gross margin), and adjusted EBITDA was $(632)M .
2025 production guidance was lowered to 18,000–20,000 (from ~20,000), and management highlighted strategic initiatives: Uber/Nuro robotaxi program (min. 20,000 Gravity vehicles over six years), Tesla Supercharger access, and expanded ADAS features .
CapEx guidance was refined to $1.1–$1.2B from prior ~$1.4B, reflecting prioritization of higher-return programs; full-year tariff impact range was updated to 8–15% (from 7–12%) per management commentary across recent calls .
Estimate comparison: S&P Global Wall Street consensus for Q2 2025 Revenue and EPS was unavailable; investors should anchor valuation on trajectory (deliveries, Gravity ramp) and funding run-way rather than a beat/miss framing .

What Went Well and What Went Wrong

What Went Well

Sixth consecutive quarter of record deliveries: 3,309 vehicles (+38.2% YoY) on 3,863 produced; management expects momentum to continue as Gravity ramps in 2H25 .
Strategic partnerships and brand building: Uber/Nuro Level 4 robotaxi program (Uber aims for 20,000+ Lucid vehicles), Timothée Chalamet as brand ambassador, and broader charging access via Tesla Superchargers .
ADAS roadmap: DreamDrive Pro adds Hands-Free Drive Assist and Hands-Free Lane Change Assist via OTA updates, underscoring in-house software capabilities .

What Went Wrong

Margin pressure: cost of revenue of $531.8M vs revenue of $259.4M drove ~-105% gross margin; adjusted EBITDA remained significantly negative at $(632)M .
Guidance trimmed: 2025 production outlook revised down to 18,000–20,000 vehicles from ~20,000, reflecting operational and macro uncertainties .
Higher tariff headwinds: management updated expected tariff impact range to 8–15%, necessitating accelerated supply chain localization and cost actions .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$200.6	$235.0	$259.4
GAAP Diluted EPS ($USD)	$(0.34)	$(0.24)	$(0.28)
Adjusted Diluted EPS (non-GAAP) ($USD)	$(0.29)	$(0.20)	$(0.24)
GAAP Gross Margin %	~-134.5% (calc from $470.4M cost/$200.6M rev)	-97.2% (mgmt)	~-105.0% (calc from $531.8M cost/$259.4M rev)
Adjusted EBITDA ($USD Millions)	$(647.6)	$(563.5)	$(632.1)
Vehicles Produced (Units)	N/A	2,212	3,863
Vehicles Delivered (Units)	N/A	3,109	3,309
Liquidity End of Period ($USD Billions)	N/A	~$5.76	~$4.86

Notes: Gross margin % for Q2 2024 and Q2 2025 computed from reported revenue and cost of revenue .

Estimates vs Actuals (S&P Global): Data unavailable for Q2 2025; cannot compute beat/miss. Values retrieved from S&P Global*.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Vehicle Production	FY 2025	~20,000 vehicles	18,000–20,000 vehicles	Lowered
CapEx	FY 2025	~$1.4B	$1.1–$1.2B	Lowered
Tariff Impact (Gross Margin headwind)	FY 2025	7–12%	8–15%	Raised

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
AI/Autonomy initiatives	Considering partners vs in-sourcing; hands-free driving targeted for roll-out; evaluating end-to-end AI approaches	Uber/Nuro L4 robotaxi partnership; Uber to invest; Lucid platform validated for autonomy	Positive acceleration (partnership execution)
Supply chain & tariffs	Localization efforts underway; expected tariff impact 7–12% on GM; graphite sourcing deals	Impact range updated to 8–15%; continuing localization; minerals collaboration (MINAC)	Headwinds modestly worse; mitigation actions intensified
Product performance (Air, Gravity)	Air leading efficiency; Gravity demand healthy; initial ramp constrained; showroom/test drive prioritization	Gravity ramp to drive 2H deliveries; hands-free ADAS and Supercharger access; record deliveries maintained	Momentum building; features expanding
Regional trends (KSA, EU)	KSA AMP-2 build/ship; Saudi mix to decline in 2025 vs NA; EU retail expansion	Continued execution; Uber program first launch in major US city; NA charging access improved	NA-centric growth focus
Regulatory/legal	IRA/tariffs uncertainty; management monitoring policy; tariff headwind assumptions embedded	Updated tariff impact range and cost actions; domestic minerals collaboration	Active mitigation; policy-sensitive
R&D execution	Midsize platform SOP late 2026; Atlas powertrain investments	CapEx refined; prioritizing high-return programs; continued ADAS software updates	Focused capital discipline

Management Commentary

“We had our sixth consecutive quarter of record deliveries in Q2 and expect to continue this trend as we ramp up Lucid Gravity production in the second half of the year.” — Marc Winterhoff, Interim CEO .
“We are focused on business fundamentals… disciplined cost management, brand building, and continuing to execute our Lucid Gravity launch ramp.” — Taoufiq Boussaid, CFO .
“Introduced access to 23,500+ Tesla Superchargers in North America for all Lucid Air models using a Lucid-approved NACS adapter.” .
“Uber aims to deploy 20,000 or more Lucid vehicles equipped with the Nuro Driver™ over six years.” .
“Hands-Free Drive Assist and Hands-Free Lane Change Assist… available as an over-the-air (OTA) update” — VP of ADAS and AD .

Q&A Highlights

Breakeven path tied to scale: Gravity helps scale, but midsize program is the key lever to mitigate fixed-cost under-absorption; no specific timeline guided .
Tariff headwinds: range increased to 8–15%; management pursuing localization and supply chain optimization; graphite offtake and domestic MINAC collaboration announced .
Gravity ramp quality gating: early software and HUD supplier issues addressed; deliveries pacing with quality standards to avoid “half-baked” releases .
Liquidity and balance sheet: run-way into 2H26 discussed previously; financing actions (2030 notes; repurchase of 2026 notes) and PIF support highlighted earlier in Q1/Q4 calls .

Estimates Context

S&P Global Wall Street consensus estimates for Q2 2025 Revenue and EPS were unavailable at time of analysis, so we cannot determine beat/miss. Values retrieved from S&P Global*.
Given lack of consensus data, we recommend focusing on operational KPIs (deliveries, Gravity ramp), margin trajectory (cost transformation, tariff mitigation), and capital discipline as primary drivers of near-term estimate revisions .

Key Takeaways for Investors

Delivery momentum intact; Gravity ramp in 2H25 is the core volume catalyst. Watch showroom/test-drive availability, OTA feature rollouts, and production scaling signals .
Margins remain the gating factor; cost of revenue vs revenue indicates continued heavy losses, but scale plus midsize program are the structural path to breakeven; expect persistent volatility until volumes inflect .
Guidance prudence: production trimmed to 18,000–20,000 and CapEx refined to $1.1–$1.2B — a credible reset aligning with capital discipline and macro realities .
Strategic validation: Uber/Nuro robotaxi program and Tesla Supercharger access broaden use-cases and brand reach; these catalysts support narrative strength even amid margin headwinds .
Supply chain localization and domestic minerals collaboration (MINAC) are important mitigants to tariff/inflation risks; monitor pace of domestic offtake agreements .
Funding and liquidity: ~$4.86B liquidity provides run-way to execute near-term; maintain vigilance on cash burn vs ramp pacing .
Trading lens: near-term stock reaction likely tied to Gravity execution milestones, margin improvement evidence, and further partnership/licensing announcements.

Additional Q2 2025 References

Production & Deliveries release: 3,863 produced, 3,309 delivered .
Supercharger access and Air updates: Adapter availability and range enhancements .
DreamDrive Pro OTA feature additions .
MINAC supply-chain collaboration .
8-K 2.02 and earnings press release (financial statements, non-GAAP reconciliations) –.

S&P Global disclaimer: Wall Street consensus values for Q2 2025 were unavailable in our S&P Global query at time of analysis; future updates may enable beat/miss comparisons*.

Lucid Group, Inc. (LCID)·Q2 2025 Earnings Summary