Lucid Group (LCID) recently announced that it will be lowering its production goal for 2025 due to a changing market environment. Despite missing second-quarter expectations, the electric vehicle maker remains optimistic about its growth plans.
In its Q2 earnings report, Lucid stated that it now expects to produce around 18,000 to 20,000 vehicles, which is slightly lower than the previous target of 20,000 units. The company attributed this adjustment to “the potential impact of continuously changing market environment and external factors.”
Although Lucid reported record revenue of $259.4 million, it fell short of Wall Street’s expectations of $280 million. The company also posted a net loss of $790 million, or $0.34 per share, and an adjusted loss per share of $0.24, missing bottom-line estimates.
Despite these challenges, Lucid ended the quarter with a total liquidity of $4.86 billion, including $3.63 billion in cash, cash equivalents, and investments. This financial reserve provides the company with ample flexibility to fund operations, scale production of its Gravity model, and invest in future platforms.
Lucid confirmed that it has enough liquidity to sustain operations through the second half of 2026, when it plans to begin production of its midsize platform. This platform will include at least three different models, including a midsize SUV and sedan with a starting price of around $50,000, positioning them as competitors to Tesla’s Model Y and Model 3.
In addition to its production plans, Lucid recently announced a partnership with Uber and Nuro to deploy 20,000 electric robotaxis over the next six years. Uber will invest $300 million in Lucid as part of this collaboration. The company is also expanding its brand awareness by partnering with actor Timothée Chalamet as a brand ambassador.
Despite the revised production goal for 2025, Lucid achieved its sixth consecutive quarter of record deliveries, with 3,309 vehicles delivered in Q2 and 3,863 produced at its Casa Grande, Arizona plant. The company remains confident that it is on track to significantly increase production in the second half of the year.
As the auto industry prepares for potential changes under the current administration, Lucid is already ahead of the curve with most of its components being manufactured in the US, including batteries and powertrains. The company is also strengthening its supply chain with new partnerships to secure domestic EV resources like Graphite.
Overall, while facing challenges in the current market environment, Lucid Group remains focused on its long-term growth and expansion plans as it continues to establish itself as a key player in the electric vehicle market.
