Lucid Motors doesn’t know how many EVs it will build this year

On Tuesday, Lucid Motors announced that it can no longer ascertain the number of electric vehicles (EVs) it will manufacture or sell this year. This uncertainty is attributed to the company's transition to a new CEO and a comprehensive cost-reduction strategy. In February, Lucid had projected production figures between 25,000 and 27,000 vehicles for the year. This estimate was a significant reduction from the hundreds of thousands the company anticipated when it went public in 2021, although it still represented a notable increase over last year's production of approximately 18,000 units. Chief Financial Officer Taoufiq Boussaid revealed this change in guidance during the first-quarter earnings call. Notably, this announcement follows a recent workforce reduction of 12%, which was first reported by TechCrunch in February. According to a filing made by Lucid on Tuesday, these layoffs are expected to incur a cost of around $40 million in the short term. However, the company believes these cuts could lead to savings of up to $500 million over the coming years. Boussaid explained that the withdrawal of production guidance was a “governance decision,” as incoming CEO Silvio Napoli undertakes a review of the business. The company plans to offer a “full updated outlook” during the second-quarter earnings call scheduled for the coming months. Napoli emphasized the necessity for sharper focus and consistent execution to unlock Lucid's full potential, particularly in areas such as simplification and prioritization. In addition to the leadership transition, Lucid Motors reported a disappointing first quarter, primarily due to a 29-day production halt and a temporary stop-sale triggered by issues with a seat supplier. These complications have led to an increase in inventory levels, prompting the company to manage production volumes cautiously to alleviate this surplus. Boussaid stated that while the company has ample production capacity, it must exercise discipline to avoid building excessive inventory ahead of demand. Amid these challenges, Lucid Motors is set to begin production of its first high-volume vehicle this year, priced below $50,000. The company aims to produce the first EV on this mid-size platform by the end of 2026, maintaining its timeline for ramping up production in 2027. Furthermore, Lucid plans to launch a robotaxi service in collaboration with Uber and Nuro by the end of this year, utilizing autonomous versions of its Gravity SUV. The company confirmed that it remains on track to start producing road-ready versions of these vehicles in the fourth quarter.