Lucid Revises Production Targets for This Year

Electric vehicle manufacturer Lucid Group has suspended its production forecasts for the current year while its new CEO evaluates the company’s operations, raising the possibility of a reduction in production volume in the coming months.

This was revealed by company executives during their latest earnings call, where they discussed the need to reduce the large inventory of available units, meaning a permanent shutdown cannot be ruled out.

“A key long-term goal is to build a more profitable company that funds its own growth. This means being rigorous in meeting our commitments,” stated the new CEO, Silvio Napoli, during the presentation.

The executive explained that there are currently no plans to shut down its sole U.S. plant, located in Arizona, but the option remains on the table. “In short, it means making clear decisions about where to invest and, just as importantly, where not to,” he reiterated.

Napoli stated that he plans to review the company’s operations over the coming weeks before informing investors of the measures to be taken. The new production target will be announced during the second-quarter earnings call, on a date yet to be determined.

Lucid produced 5,500 vehicles in the first quarter of 2026, a 149% increase over the same period last year. However, it delivered only 3,093 units due to a delay caused by an issue with a seat supplier, which has since been resolved.

“An issue with a supplier, resolved during the quarter, significantly impacted Lucid Gravity deliveries in February, but deliveries in January and March exceeded those of the same periods last year,” said Marc Winterhoff, Lucid’s interim CEO.

Chief Financial Officer Taoufiq Boussaid added that the situation led to ending the first quarter with high inventory levels, which the company plans to convert into revenue and cash as deliveries return to normal.

Lucid had previously announced a production guidance of between 25,000 and 27,000 vehicles for 2026, representing a 40% to 50% increase over the previous year.

The company reported revenue of $282.5 million in the first quarter, a 20% increase compared to the first quarter of 2025, but fell short of Wall Street expectations.

Net losses totaled more than $1 billion, compared to $366 million a year ago.

The zero-emission vehicle manufacturer ended the first quarter with total liquidity of nearly $4.7 billion, including a credit line and a capital injection from Uber, enough to fund its operations through the second half of 2027.

To boost its cash flow, the company will focus on driving sales of the Gravity pickup truck and the launch of its mid-size platform later this year, which will open the door to a new market with models expected to start at under $50,000.