Stock giant Wall Street experiences letdown as Lucid lowers projected output figures
Lucid Motors, the American electric vehicle (EV) manufacturer, has faced several hurdles in the second quarter of 2025, with production bottlenecks and tariffs causing a 21% drop in gross margin. Despite these setbacks, the company remains optimistic about its future, aiming to ramp up production and meet customer demand.
In the first half of 2025, Lucid produced just over 6,000 vehicles, with 3,863 vehicles produced and 3,309 delivered in Q2 2025, marking a record for six consecutive quarters of deliveries. However, the production ramp for the Gravity SUV has been slower than expected, with deliveries to the wider public only beginning late last year and public deliveries originally planned for late April 2025.
The key challenges for Lucid have been production bottlenecks due to supply shortages and tariffs. These issues have affected the production of rare earth magnets, a crucial component in EV manufacturing, sourced mainly from China. Despite these challenges, Lucid is working to increase production capacity and meet customer demand during the remainder of 2025.
The company has addressed the magnet shortages by sourcing alternative materials and expects to avoid further shutdowns related to these issues. Lucid is also planning to significantly increase Gravity production in the second half of 2025 to help offset the slow start and meet the revised production range of 18,000 to 20,000 vehicles in 2025.
Despite the low production so far, the daily order rate for the Gravity SUV has nearly doubled, signaling strong demand even as manufacturing struggles continue. More customers are experiencing the Gravity model, which is now available in studios nationwide, but actual US sales volumes remain very low, with estimated US sales of only about five units in Q2 2025.
In addition to its production challenges, Lucid's Q2 revenue was $259.4 million, slightly missing the expected $262.4 million. However, the company ended Q2 with $4.86 billion in total liquidity, providing a strong financial foundation for the future.
Looking ahead, Lucid is partnering with Uber to create a robotaxi service, with plans to sell 20,000 Lucid BEVs over the next five years. The company is also backed by the Saudi Public Investment Fund (PIF), which could provide further financial support.
Despite the current challenges, industry-watchers believe that the brand recognition of Lucid's rivals gives them an advantage over Lucid in the coming years. However, with a strong focus on innovation and a commitment to increasing production, Lucid remains optimistic about its future in the EV market.
Sports enthusiasts might find it intriguing to learn about Lucid Motors' partnership with Uber, aiming to create a robotaxi service, leveraging technology to revolutionize transportation in the same way that sports technologies have transformed athletic performances. Despite faced challenges like production bottlenecks and tariffs in the EV sector, Lucid is optimistic about its future in the market, continually striving to innovate and increase production capacity.
