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It has been about a month since the last earnings report for Lucid Group (LCID - Free Report) . Shares have lost about 29.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Lucid Group due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Lucid Group, Inc. before we dive into how investors and analysts have reacted as of late.

LCID Q2 Earnings MissLucid reported a second-quarter 2026 loss of $3.30 per share, wider than the year-ago loss of $2.80 as well as the Zacks Consensus Estimate of a loss of $2.72.

Revenues surged 56.2% year over year to $405 million and beat the consensus estimate of $323 million by 25.4%. Higher vehicle deliveries, improved product mix and increased regulatory credit sales supported the top line.

Deliveries and Product Mix Lift SalesLucid produced 4,774 vehicles during the quarter, up 24% year over year. Production declined 13% sequentially as management deliberately reduced output to align manufacturing with near-term demand and limit further inventory growth.

Deliveries rose to 3,953 vehicles, up 19% year over year and 28% sequentially. Lucid Gravity accounted for the majority of volumes. Revenues also benefited from a 3.7% sequential increase in average selling price and a $25 million increase in regulatory credit sales. Deliveries in the Middle East improved during the quarter.

Gross Margin Stays Deeply NegativeGross margin was negative 105%, compared with negative 110% in the first quarter and negative 105% a year ago. Lower production reduced fixed-cost absorption and raised conversion costs per vehicle, offsetting the benefits of higher revenues and improved pricing.

Results included roughly $300 million of inventory impairment charges, which reduced gross margin by 74 percentage points. The charge reflected a reassessment of inventory carrying values and expected demand. Lucid also reduced firm purchase commitments to lower future inventory obligations and cash requirements.

LCID Targets $1.4B in Cash Flow ImprovementsAdjusted EBITDA loss widened to $901.1 million from $632.1 million in the year-ago quarter. Operating expenses included $321.3 million of research and development costs, $300.4 million of selling, general and administrative expenses and $33.7 million of workforce-reduction charges.

Management identified $1.4 billion of cash flow improvements for 2026. The plan includes projected inventory savings of $600-$800 million, capital expenditure reductions of about $500 million and operating expense savings of roughly $200 million. Lucid’s U.S. workforce reduction and elimination of the second shift at its Arizona factory are expected to generate $158 million in annualized savings.

Lucid Advances Robotaxi and AMP-2 ProgramsLucid’s robotaxi program with Uber and Nuro moved deeper into testing and validation. The engineering fleet includes nearly 100 vehicles operating across the San Francisco Bay Area and Houston. Production-validation Gravity vehicles have begun reaching partners, with regular production expected in the fourth quarter and service launch targeted for late 2026.

The AMP-2 factory in Saudi Arabia has shifted from construction to industrialization. Manufacturing systems for stamping, body, paint and final assembly are being installed and tested. Lucid expects the facility to be ready for production in early 2027 and for midsize production in the second half of that year.

Balance Sheet and Liquidity PositionLucid ended the June quarter with $3 billion of total liquidity, including about $800 million of cash and investments and $2.2 billion of available borrowing capacity.

Free cash flow was negative $1.48 billion, compared with negative $1.01 billion a year earlier. Net cash used in operating activities totaled $1.22 billion, while capital expenditures were $253.8 million. Inventory increased to $1.38 billion from $1.11 billion at the end of 2025.

LCID Withholds GuidanceLucid did not provide quantitative financial guidance. Management expects third- and fourth-quarter production to remain below second-quarter levels as AMP-1 operates with one shift through year-end.

Deliveries are expected to exceed production during the second half as Lucid works down finished-vehicle inventory. Management anticipates sequential delivery growth consistent with normal seasonality, though at a more moderate pace than in the prior year. The company expects its current liquidity and operational measures to provide runway well into 2027.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted 5.97% due to these changes.

VGM ScoresCurrently, Lucid Group has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. Notably, Lucid Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerLucid Group is part of the Zacks Automotive - Domestic industry. Over the past month, Tesla (TSLA - Free Report) , a stock from the same industry, has gained 11%. The company reported its results for the quarter ended June 2026 more than a month ago.

Tesla reported revenues of $28.24 billion in the last reported quarter, representing a year-over-year change of +25.5%. EPS of $0.33 for the same period compares with $0.40 a year ago.

Tesla is expected to post earnings of $0.47 per share for the current quarter, representing a year-over-year change of -6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1%.

Tesla has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

Lucid Group LCID shares fell about 7.7% Monday as pressure on growth stocks outweighed recent developments in the electric-vehicle maker's European retail strategy.

Investors were also weighing a new threat to the auto sector after President Donald Trump said the U.S. plans to impose 50% tariffs on Canadian auto imports starting in 2027. Higher Treasury yields added to the pressure on rate-sensitive growth names.

Lucid last week expanded its European footprint by naming Munsterhuis Autobedrijven as its first retail partner in the Netherlands. The arrangement adds sales, leasing and service capabilities in Hengelo to Lucid's existing presence in Hilversum.

Attention also remains on the company's restructuring plan. Lucid is targeting $1.4 billion in cash-flow savings through lower capital spending, workforce reductions and working-capital measures. With $3 billion of liquidity, investors are watching the production ramp at its AMP-2 facility in Saudi Arabia and development of its midsize vehicle platform.

Near-term trading may remain sensitive to tariffs, interest rates and execution on Lucid's cost-cutting and production plans.

Lucid's new CEO unveiled a sweeping list of fixes, partnerships, and bold promises, but Wall Street responded by punishing the stock hard. The question now is whether the company can survive long enough to compete in markets dominated by rivals…

Lucid’s (NASDAQ: LCID | LCID Price Prediction) shares rallied into the summer as it moved from below $3 in mid-July to $8 by the end of the month. In the last month, they have collapsed 23% and are now down 53% for the year. Clearly, Wall St. sees what was once a troubled company as deeply troubled.

Investors disliked second-quarter earnings and winced when new CEO Silvio Napoli said he had started an “operational reset.” He said current models were not enough to take the company forward and that it needed new products. He said he planned to cut expenses by another $1 billion. He said that the company’s new Cosmos, priced below $50,000, would be delayed until next year. And he chopped 1,500 people. This is after layoffs several months ago.

Napoli’s list of plans may have been too long to be believable. The company will use Nuro’s self-driving software to partner with Uber (NYSE: UBER). It will be built on the all-electric Gravity SUV. The announcement of the deal was nothing short of breathless: “Setting a new standard for safe, sustainable, and scalable autonomous transportation worldwide with a next-generation global robotaxi program. This is a first-of-its-kind partnership built on expertise, collaboration, and trust,” the companies said.

The reason for the panic is simple. Lucid continues to lose money and makes very few vehicles. It has cut costs, a move that is as old as the mountains. And it is unclear how much was fat and how much was muscle.

The sub-$50,000 EV is a product most EV companies know they need to restart slow EV sales. That means competition. And the self-driving taxi business is full to overflowing. That includes Tesla (NASDAQ: TSLA) and Waymo, who have access to huge amounts of capital and have been in the field for months, if not years.

Lucid is chasing business where it is not close to the first company in line. And, well behind others, it does not have the money to catch up.

Contact [email protected] for any questions or corrections.

Electric vehicle maker Lucid (LCID.O) is recalling 27,185 of its ​flagship Air luxury sedans in the U.S., ‌because an exterior lighting circuit could overheat and increase the risk of a fire, the National ​Highway Traffic Safety Administration said on Friday.

Here ​are some details:

The NHTSA recall notice asked ⁠owners to park their vehicles outside ​and away from structures until a remedy is ​deployed.

The overheated circuit could also cause loss of exterior lighting, which could, in turn, increase the risk ​of a crash, according to the NHTSA.

Lucid ​has released an over-the-air software update to fix the issue ‌and ⁠has already determined that 20,719 vehicles have received the update, the NHTSA added.

The recall marks Lucid's largest to date, encompassing more ​vehicles than the ​company delivered ⁠throughout 2025, when it handed over 15,841 cars.

In May, Lucid recalled ​2,039 vehicles due to loss of ​drive ⁠power, while it also recalled more than 10,000 vehicles in January this year over rearview ⁠camera ​image issues.

Lucid is backed ​by Saudi Arabia's Public Investment Fund (PIF).

Shares of the electric vehicle company Lucid Group (LCID -6.11%) rose last month after the company denied rumors that it was considering filing for bankruptcy protection or going private.

Lucid stock also gained significant momentum toward the end of July after an SEC filing showed that Prince Al Waleed bin Talal Al Saud, a member of the Saudi royal family, bought 19.5 million shares of the company in mid-July.

Investors were clearly happy with both pieces of news, and Lucid stock gained 10.3% last month, according to data from S&P Global Market Intelligence.

Image source: Lucid Group.

A strong rebound after a very rough start July started pretty rough for Lucid after an EV blog published an article saying Lucid was considering filing for bankruptcy protection or going private. Lucid's management quickly denied the rumor, with CEO Silvio Napoli released a statement saying,

"Lucid is not considering bankruptcy or a transaction to take the company private. Those reports are false. The Board did not explore either scenario. Period."

He added later in the statement that, "Lucid has sufficient liquidity to fund its operations well into next year."

Investors were obviously happy with Napoli's statement, and they received more good news when an SEC filing showed that Prince Al Waleed bin Talal Al Saud bought an additional 19.5 million shares of Lucid during the month, equivalent to about a 5% stake in the company. The Saudi Arabian Public Investment Fund (PIF) owns an estimated 60% of Lucid.

With Lucid putting shareholders' fears to rest and the company benefiting from a large purchase of shares from a key investor, investors boosted Lucid's stock in July.

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Lucid's stock slid following second-quarter results Lucid reported its second-quarter results (which ended June 30) in the first week of August, and investors were enthused with what they saw. Revenue rose 56% from the year-ago quarter to $405 million but was below Wall Street's consensus estimate of $416 million.

Lucid's $3.30 loss per share also missed the average analyst estimate of $2.46 per share.

Lucid's management also announced an "operational reset" for the company, identifying $1.4 billion in cash-flow improvement opportunities, advancing its Robotaxi technology, completing its AMP-2 factory in Saudi Arabia, and launching its upcoming midsize models.

What's clear right now is that the company certainly has its work cut out for it, and with its share price plunging 69% over the past 12 months, many investors have lost faith that Lucid can turn things around.

Lucid Motors was just months away from releasing its most affordable electric vehicle yet, a crossover SUV called the Cosmos that was supposed to start under $50,000. But this week, the company pushed the release of the Cosmos back by almost a full year to the second half of 2027, part of an effort by its new CEO to avoid the quality problems that Lucid has suffered with its existing EVs.

It’s the latest setback for the company, which has struggled to find more than a niche customer base for its expensive, but technologically impressive, vehicles. And it’s one that CEO Silvio Napoli presented as necessary for the company to survive.

“While there is no question that Lucid brought leading innovations and outstanding products to the market, we have disappointed on several fronts, and for far too long,” Napoli said this week. “We have not executed consistently. We missed commitments, launched products before they were ready, underinvested in service, responded too slowly to quality issues, and allowed complexity to slow decisions down.”

Napoli’s sober assessment, which he offered on the company’s second-quarter earnings call, helps explain why he has taken an axe to the company’s leadership structure and overall workforce.

Multiple executives have left since he officially took over on June 1, including Senior Vice President of Finance Gagan Dhingra, whose departure was disclosed at the bottom of the company’s second-quarter financial filing with the Securities and Exchange Commission (SEC) on Tuesday. Napoli has replaced those outgoing executives with an entirely new C-suite as he embarks on a cost-cutting mission aimed at achieving $1.4 billion in savings by the end of this year.

Napoli also cut 18% of Lucid’s overall workforce in June, following a 12% layoff earlier this year before he came on board. He canceled a second shift at Lucid’s factory in Arizona, citing lower demand for the company’s EVs — including its Gravity SUV, which has not taken off as the company expected despite being a more popular form factor than its first EV, the Air sedan.

The Cosmos had been seen by some as a light at the end of the tunnel. It’s supposed to be the first of several cars built on Lucid’s next-generation “mid-size” EV platform, which is smaller and cheaper to build. The much lower price tag is supposed to help Lucid attract more customers and reach higher sales volumes.

But Napoli seems worried that the upside of getting the Cosmos EV to market could be negated if Lucid doesn’t get the launch right.

Though he didn’t explicitly name the SUV, Napoli said on the call this week that he delayed Cosmos because he doesn’t want to run into the same kind of problems Lucid has had with previous vehicles, clearly referring to the Gravity.

The company has struggled with build quality and software issues on the Gravity. Things got so bad at one point that Napoli’s predecessor, interim CEO Marc Winterhoff, apologized to Lucid owners.

“We will not repeat the mistakes of the past by bringing a product to market before it is ready,” Napoli said on the call.

The decision to delay Cosmos will likely disappoint some customers who were hoping to buy one by the end of this year. But the delay, combined with the decision to lower production in Arizona, is also affecting Lucid’s supply base.

In the company’s quarterly filing with the SEC, it wrote that “lower production volumes or demand, or reductions in our projected production volumes, have negatively affected, and could continue to adversely affect, our relationships with existing suppliers, who may seek to increase pricing, assert contractual or other claims, or otherwise fail to perform or comply with contractual obligations.”

Napoli’s big “reset” of Lucid Motors means the company now has to tread water for another year until the Cosmos EV goes into production. The company said Tuesday that it has “sufficient liquidity runway well into 2027.” But it also warned Wall Street analysts that it is going to build and sell fewer vehicles this year than it had previously predicted. As a result, the company’s stock price plummeted more than 15% on Wednesday.

With Cosmos delayed, there will now be even more attention on Lucid’s planned robotaxi service with Uber and Nuro, which is supposed to launch by the end of this year. Napoli called it a “top priority and, indeed, a must-win project for Lucid” on Tuesday’s call.

As part of that collaboration, Uber has ordered 10,000 Gravity SUVs that will be retrofitted with autonomous vehicle tech from Nuro. Uber has also ordered 25,000 robotaxis based on Lucid’s mid-size platform, though those aren’t expected to enter production until late 2028.

Uber CEO Dara Khosrowshahi said on his company’s own earnings call Wednesday that Napoli is “taking some bold steps to go back to the fundamentals” at Lucid, and said he believed the restructuring is “necessary” and “positive.”

Khosrowshahi also pointed out that Lucid’s majority owner — Saudi Arabia’s Public Investment Fund — is a major investor in Uber, and said the Kingdom is “the definition of a long-term fundamental investor.”

“We think the combination of ourselves, Nuro, and the Public Investment Fund backing Lucid, along with the actions that Silvio is taking, are kind of the right formula for them to deliver on the commitments that we have on the books with them,” Khosrowshahi said.

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Transformation program launched, starting with a focus on Back-to-Basics

Identified $1.4 billion cash flow improvement opportunities in 2026 across operating expenses, capital expenditures, and working capital Launched plan to refocus on three key areas: Cash & Cost, Customer & Quality, Culture & Team  Four strategic projects earmarked as top priorities for resource allocation and capital deployment New simplified organizational structure aligned with priorities, halving CEO reports and enforcing accountability Q2 Results 

Produced 4,774 vehicles, up 24% year over year, with production intentionally reduced to lower inventory and free up cash Delivered 3,953 vehicles, up 19% year over year Generated second quarter revenue of $405 million, up 56% year over year Ended the quarter with $3.0 billion in total liquidity Recently secured financing, combined with ongoing operational measures, provide sufficient liquidity runway well into 2027 Operational Highlights 

Robotaxi program began deliveries of Lucid Gravity Production-Validation vehicles, with testing underway by Uber and Nuro across the San Francisco Bay Area and Houston   AMP-2 manufacturing facility in Saudi Arabia has transitioned from construction to industrialization, with installation and tuning of manufacturing ongoing Midsize program development continues, with prototype vehicles and Atlas drive units progressing through validation and production readiness activities , /PRNewswire/ -- Lucid Group, Inc. (NASDAQ: LCID), maker of the world's most advanced software-defined vehicles and technologies, today announced financial results for its second quarter ended June 30, 2026, and outlined a comprehensive operational reset focused on strengthening execution, reducing cash burn and improving the customer experience.

"Lucid has leading technology, compelling products and deeply committed people, but potential is not performance," said Silvio Napoli, CEO of Lucid. "We are going back to basics, with a clear focus on cash, customers, and culture. We are focused on delivering on our four must win priorities, including our $1.4 billion cash flow improvement plan and the advancement of our Robotaxi, AMP-2, and Midsize programs, which will establish a strong foundation for Lucid's next chapter."

"Silvio and his leadership team are transforming the company, and the Board stands firmly behind their actions," said Turqi Alnowaiser, Chairman of Lucid. "The actions underway are intended to strengthen the company's execution, improve the customer experience, and translate Lucid's technology and product leadership into long-term value for customers and shareholders."

Three Priorities Guiding Lucid's Operational Reset

Lucid is refocusing the organization around three priorities designed to improve execution and strengthen the business.

Cash and Cost. Lucid is applying greater discipline to spending, investment decisions and capital allocation, while protecting the technologies and programs most important to its long-term competitiveness.

The company has deliberately reduced production to better align output with anticipated demand, convert inventory into deliveries and cash, and improve working capital.

Customer and Quality. Lucid is strengthening the ownership experience to match the performance of its vehicles, with a focus on product readiness, delivery experience, service responsiveness and parts availability as we invest in technicians and dedicated staff to reduce wait times by one third this year.

Culture and Team. Lucid is simplifying the organization, reducing layers and clarifying accountability to accelerate decisions and build a culture of ownership, performance and consistent execution.

The new structure halves the number of direct reports to the CEO and places experienced leaders in key roles across finance, technology, customer experience, transformation, digital and program execution. These changes are intended to accelerate decision-making, clarify ownership and build a performance-driven culture.

Four Strategic Projects

Lucid has identified four must-win projects.  

$1.4 billion cash savings plan. Lucid has identified $1.4 billion in cash reductions in 2026, including projected savings of approximately $600 million to $800 million in inventory, approximately $500 million in capital expenditures, and approximately $200 million in operating expenses. The operating expense actions include projected savings from the U.S. workforce reduction announced in June, expected to provide approximately $158 million in annualized savings. This represents the initial output of the company's broader business review underway.

Robotaxi. The company's robotaxi program with Uber and Nuro is a top priority and an important opportunity to extend Lucid's technology beyond privately owned vehicles. The program is in active testing and validation, supported by a fleet of nearly 100 vehicles across the San Francisco Bay Area and Houston. The company has begun delivering production-validation Lucid Gravity vehicles to Nuro. Moving forward, this project will be part of Lucid Technologies, a dedicated business unit bringing together AI, advanced driver-assistance, and digital capabilities.

AMP-2. Lucid's factory in Saudi Arabia is transitioning from construction to industrialization. Manufacturing systems across stamping, body, paint and final assembly are being installed and commissioned in preparation for production trials.

Midsize. Continued progress on the Midsize program, with Atlas drive units and prototype vehicles advancing through validation, durability testing, crash certification, battery-pack manufacturing validation, and cold-weather testing in New Zealand.

Second Quarter 2026 Performance

Lucid produced 4,774 vehicles and delivered 3,953 vehicles during the second quarter. The company moderated production to better align output with anticipated deliveries, reduce inventory and preserve cash.

Lucid reported second quarter revenue of $405 million and ended the quarter with $3.0 billion in total liquidity. Recently secured financing, in conjunction with operational actions the company is taking, is expected to provide sufficient liquidity runway well into 2027.

Conference Call Information

Lucid will host a conference call to discuss its second quarter 2026 financial results on Tuesday, August 4, 2026, at 2:30 pm PT / 5:30 pm ET. The live webcast of the conference call will be available on the Investor Relations website at ir.lucidmotors.com. Following the completion of the call, a replay will be available on the same website. Lucid uses its ir.lucidmotors.com website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About Lucid Group

Lucid Group, Inc. (NASDAQ: LCID) is a technology company creating exceptional mobility experiences through innovation to drive the world forward. Built on Lucid's proprietary technology and software defined vehicle architectures, the company's lineup of award-winning vehicles brings Lucid's "Compromise Nothing™" approach to premium segments of the global automotive market. Lucid designs and engineers its products in-house and assembles at its vertically integrated facilities in Arizona and Saudi Arabia, enabling continuous innovation across vehicles, software, and advanced driver assistance and autonomy-ready capabilities.

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Trademarks

This communication contains trademarks, service marks, trade names and copyrights of Lucid Group, Inc. and its subsidiaries and other companies, which are the property of their respective owners.

Forward-Looking Statements

This communication includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "shall," "expect," "anticipate," "believe," "seek," "target," "continue," "could," "may," "might," "possible," "potential," "predict," "scheduled," "aiming," "targeting," "objective," "focus," "strategic" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding results of operations, financial outlook and condition, guidance, liquidity, capital expenditures, its cash flow improvement plan, the expected savings from eliminating the second shift at AMP-1, prospects, growth, production volumes, strategies, management, and the markets in which Lucid operates, including expectations of financial and operational metrics, projections of market opportunity, market share and product sales, plans and expectations related to commercial product launches and future programs, initiatives and products, including the Midsize program, plans and expectations on vehicle production and delivery timing and volumes, expectations regarding market opportunities and demand for Lucid's products, the range, features, specifications, performance, production and delivery of Lucid's vehicles and potential impact on markets, plans and expectations regarding further monetization opportunities, plans and expectations regarding Lucid's software, technology features and capabilities, including with respect to battery and powertrain systems, plans and expectations regarding Lucid's systems approach to the design of the vehicles, estimate of Lucid's technology lead over competitors, estimate of the length of time Lucid's existing cash, cash equivalents and investments will be sufficient to fund planned operations, plans and expectations regarding Lucid's liquidity runway and cash flow improvement plans, future capital raises and funding strategy, plans and expectations regarding future manufacturing capabilities and facilities, logistics and supply chain, studio and service center openings, sales channels and strategies, test drive, appointment wait times, ability to mitigate supply chain and logistics risks, plans and expectations regarding expansion and construction of Lucid's AMP-1 and AMP-2 manufacturing facilities and capabilities, including potential benefits, ability to vertically integrate production processes, future market launches and international expansion, Lucid's ability to grow its brand awareness, expectations regarding executive leadership transitions, the potential success of Lucid's distribution strategy and future vehicle programs, changes to future or existing vehicle programs, the company's plans regarding increasing the number of technicians and concierges, potential automotive and strategic partnerships and their anticipated benefits, plans and expectations regarding Lucid's ADAS/AV roadmap and robotaxi program, expectations on the technology licensing landscape, expectations on the regulatory and political environment, and the promise of Lucid's technology. These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of Lucid's management. These forward-looking statements are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and may differ from these forward-looking statements. Many actual events and circumstances are beyond the control of Lucid. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, economic, market, financial, political, regulatory and legal conditions, including uncertainties and changes in policies, imposition or proposed imposition of tariffs, export controls, threat of a trade war, the risk of a global economic recession or other downturn, bank closures and liquidity concerns at financial institutions, and global or regional conflicts or other geopolitical events, including the military operations in the Gulf region and the Middle East, and the potential escalation and the broadening of the conflict in Iran; the outcome of Lucid's broader business review, which remains underway; risks related to changes in overall demand for Lucid's products and services and cancellation of orders for Lucid's vehicles; risks related to prices and availability of commodities and components, including rare earth minerals, semiconductors and their related products, Lucid's supply chain, logistics, inventory management and quality control, and Lucid's ability to complete the tooling of its manufacturing facilities over time and scale production of Lucid's vehicles; risks related to the uncertainty of Lucid's projected financial and operational information; risks related to the timing of expected business milestones and commercial product launches; risks related to the construction and expansion of Lucid's manufacturing facilities and the increase of Lucid's production capacity; Lucid's ability to manage expenses and control costs; risks related to future market adoption of Lucid's offerings; the quality, reliability, and performance of Lucid's vehicles and services; the effects of competition and the pace and depth of electric vehicle adoption generally on Lucid's business; changes in regulatory requirements, policies, and governmental incentives; changes in fuel and energy prices; Lucid's ability to rapidly innovate; Lucid's ability to enter into or maintain partnerships with original equipment manufacturers, vendors and technology providers, including its ability to realize the anticipated benefits of its partnerships with Aston Martin, Uber, Nuro and NVIDIA; Lucid's ability to effectively recruit, integrate, motivate, and retain key employees, including recent changes to our executive team; risks related to potential vehicle recalls; Lucid's ability to establish and expand its brand, and capture additional market share, and the risks associated with negative press or reputational harm; the risk that Lucid's cash flow improvement plan does not achieve the anticipated effect, or results in unexpected quality issues or delays; risks related to Lucid's outstanding redeemable convertible preferred stock and convertible senior notes; availability, reduction or elimination of, and Lucid's ability to obtain and effectively utilize, zero emission vehicle credits, tax incentives, and other governmental and regulatory programs and incentives; Lucid's ability to conduct equity, equity-linked or debt financing in the future; Lucid's ability to pay interest and principal on its indebtedness; future changes to vehicle specifications which may impact performance, features, pricing and other expectations; the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries; and those factors discussed under the cautionary language and the Risk Factors in Lucid's Annual Report on Form 10-K for the year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other documents Lucid has filed or will file with the Securities and Exchange Commission. If any of these risks or uncertainties materialize, or Lucid's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Lucid currently does not know or that Lucid currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Lucid's expectations, plans or forecasts of future events and views as of the date of this communication. Lucid anticipates that subsequent events and developments will cause Lucid's assessments to change. However, while Lucid may elect to update these forward-looking statements at some point in the future, Lucid specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Lucid's assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Non-GAAP Financial Measures and Key Business Metrics

Condensed consolidated financial information has been presented in accordance with US GAAP ("GAAP") as well as on a non-GAAP basis to supplement Lucid's condensed consolidated financial results. Lucid's non-GAAP financial measures include Adjusted EBITDA, adjusted net loss attributable to common stockholders (diluted), adjusted net loss per share attributable to common stockholders (diluted), and free cash flow, which are discussed below.

Adjusted EBITDA is defined as net loss attributable to common stockholders (basic) before (1) interest expense, (2) interest income, (3) provision for (benefit from) income taxes, (4) depreciation and amortization, (5) stock-based compensation, (6) workforce reduction charges, (7) change in fair value of common stock warrant liability, (8) change in fair value of equity securities of a related party, (9) change in fair value of derivative liabilities and subscription agreements associated with redeemable convertible preferred stock (related party), (10) accretion of redeemable convertible preferred stock (related party), and (11) gain on extinguishment of debt. Lucid believes that Adjusted EBITDA provides useful information to Lucid's management and investors about Lucid's financial performance.

Adjusted net loss attributable to common stockholders (diluted) is defined as net loss attributable to common stockholders (diluted) excluding (1) stock-based compensation, (2) workforce reduction charges, (3) change in fair value of common stock warrant liability, (4) change in fair value of equity securities of a related party, (5) change in fair value of derivative liabilities and subscription agreements associated with redeemable convertible preferred stock (related party), and (6) accretion of redeemable convertible preferred stock (related party).

Lucid defines and calculates adjusted net loss per share attributable to common stockholders (diluted) as adjusted net loss attributable to common stockholders (diluted) divided by weighted-average shares outstanding attributable to common stockholders (diluted).

Lucid believes that adjusted net loss attributable to common stockholders (diluted) and adjusted net loss per share attributable to common stockholders (diluted) financial measures provide investors with useful information to evaluate the performance of its business excluding items not reflecting ongoing operating activities.

Free cash flow is defined as net cash used in operating activities less capital expenditures. Lucid believes that free cash flow provides useful information to Lucid's management and investors about the amount of cash generated by the business after necessary capital expenditures.

These non-GAAP financial measures facilitate management's internal comparisons to Lucid's historical performance. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting, and financial planning purposes. Management also believes that presentation of the non-GAAP financial measures provides useful information to Lucid's investors regarding measures of its financial condition and results of operations that Lucid uses to run the business and therefore allows investors to better understand Lucid's performance. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of Lucid's results as reported under GAAP.

Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under GAAP when understanding Lucid's operating performance. In addition, other companies, including companies in Lucid's industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Lucid's non-GAAP financial measures and key performance measures as tools for comparison. A reconciliation between GAAP and non-GAAP financial information is presented below.

LUCID GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except share and per share data)

June 30,
2026

December 31,
2025

ASSETS

Current assets:

Cash and cash equivalents

$       732,601

$       997,827

Short-term investments (including nil and $50,000 associated with a related party as of June 30, 2026 and December 31, 2025, respectively)

28,712

631,093

Accounts receivable, net (including $186,581 and $120,540 from a related party as of June 30, 2026 and December 31, 2025, respectively)

223,050

177,162

Inventory

1,378,653

1,109,529

Prepaid expenses

72,458

59,606

Other current assets

341,067

324,434

Total current assets

2,776,541

3,299,651

Property, plant and equipment, net

4,222,841

3,978,132

Right-of-use assets

249,019

241,974

Long-term investments (including $14,191 and $24,259 associated with a related party as of June 30, 2026 and December 31, 2025, respectively)

14,191

512,241

Other noncurrent assets

436,234

354,983

TOTAL ASSETS

$     7,698,826

$     8,386,981

LIABILITIES

Current liabilities:

Accounts payable

$       366,907

$       487,521

Finance lease liabilities, current portion

5,045

84,222

Current portion of debt ($503,088 and $467,963 associated with a related party as of June 30, 2026 and December 31, 2025, respectively)

707,142

671,746

Other current liabilities (including $73,134 and $81,580 associated with a related party as of June 30, 2026 and December 31, 2025, respectively)

1,359,101

1,392,641

Total current liabilities

2,438,195

2,636,130

Finance lease liabilities, net of current portion

102,685

104,559

Debt, net of current portion (including $497,426 and nil associated with a related party as of June 30, 2026 and December 31, 2025, respectively)

2,546,556

2,046,576

Other long-term liabilities (including $123,504 and $123,198 associated with related parties as of June 30, 2026 and December 31, 2025, respectively)

599,441

582,739

Derivative liabilities associated with redeemable convertible preferred stock (related party)

163,655

16,200

Total liabilities

5,850,532

5,386,204

REDEEMABLE CONVERTIBLE PREFERRED STOCK

Preferred stock 10,000,000 shares authorized as of June 30, 2026 and December 31, 2025, Series A redeemable convertible preferred stock, par value $0.0001; 100,000 shares issued and outstanding as of June 30, 2026 and December 31, 2025; liquidation preference of $1,470,165 and $1,350,441 as of June 30, 2026 and December 31, 2025, respectively (related party)

1,469,464

1,339,641

Preferred stock 10,000,000 shares authorized as of June 30, 2026 and December 31, 2025, Series B redeemable convertible preferred stock, par value $0.0001; 75,000 shares issued and outstanding as of June 30, 2026 and December 31, 2025; liquidation preference of $1,032,889 and $949,249 as of June 30, 2026 and December 31, 2025, respectively (related party)

1,032,514

943,849

Preferred stock 10,000,000 shares authorized as of June 30, 2026 and December 31, 2025, Series C redeemable convertible preferred stock, par value $0.0001; 55,000 and 0 shares issued and outstanding as of June 30, 2026 and December 31, 2025; liquidation preference of $566,859 and nil as of June 30, 2026 and December 31, 2025, respectively (related party)

404,279

—

Total redeemable convertible preferred stock

2,906,257

2,283,490

STOCKHOLDERS' EQUITY (DEFICIT)

Common stock, par value $0.0001; 1,500,000,000 shares authorized as of June 30, 2026 and December 31, 2025; 394,155,958 and 327,451,844 shares issued and 394,070,176 and 327,366,062 shares outstanding as of June 30, 2026 and December 31, 2025, respectively

39

33

Additional paid-in capital

16,636,039

16,337,023

Treasury stock, at cost, 85,782 shares at June 30, 2026 and December 31, 2025

(20,716)

(20,716)

Accumulated other comprehensive income

615

11,692

Accumulated deficit

(17,673,940)

(15,610,745)

Total stockholders' equity (deficit)

(1,057,963)

717,287

TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)

$     7,698,826

$     8,386,981

LUCID GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(in thousands, except share and per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Revenue (including $96,188 and $30,247 from a related party for the three months ended June 30, 2026 and 2025, and $134,558 and $35,343 for the six months ended June 30, 2026 and 2025, respectively)

$       405,347

$       259,432

$       687,812

$       494,480

Costs and expenses

Cost of revenue

832,072

531,783

1,426,242

995,343

Research and development

321,336

273,839

657,006

525,085

Selling, general and administrative

300,432

256,857

604,608

469,032

Workforce reduction charges

33,675

—

71,609

—

Total cost and expenses

1,487,515

1,062,479

2,759,465

1,989,460

Loss from operations

(1,082,168)

(803,047)

(2,071,653)

(1,494,980)

Other income (expense), net

Change in fair value of common stock warrant liability

—

5,322

—

18,183

Change in fair value of equity securities of a related party

549

3,948

(9,672)

(9,505)

Change in fair value of derivative liabilities and subscription agreements associated with redeemable convertible preferred stock (related party)

102,790

111,475

110,165

393,175

Gain on extinguishment of debt

—

116,360

—

116,360

Interest income

9,634

44,318

22,738

96,527

Interest expense (including $23,363 and $4,912 to a related party for the three months ended June 30, 2026 and 2025, and $34,672 and $8,612 for the six months ended June 30, 2026 and 2025, respectively)

(47,817)

(23,749)

(88,890)

(35,632)

Other income (expense), net

(16,789)

3,572

(24,656)

6,537

Total other income, net

48,367

261,246

9,685

585,645

Loss before provision for (benefit from) income taxes

(1,033,801)

(541,801)

(2,061,968)

(909,335)

Provision for (benefit from) income taxes

1,050

(2,369)

1,227

(3,732)

Net loss

(1,034,851)

(539,432)

(2,063,195)

(905,603)

Accretion of redeemable convertible preferred stock (related party)

(224,425)

(199,823)

(330,387)

(564,748)

Net loss attributable to common stockholders, basic

(1,259,276)

(739,255)

(2,393,582)

(1,470,351)

Interest expense on 2026 Notes

—

309

—

4,283

Gain on extinguishment of debt

—

(116,360)

—

(116,360)

Net loss attributable to common stockholders, diluted

$    (1,259,276)

$      (855,306)

$    (2,393,582)

$    (1,582,428)

Weighted-average shares outstanding attributable to common stockholders(1)

Basic

382,098,609

305,640,483

$  355,340,787

$  304,641,184

Diluted

382,098,609

305,788,272

$  355,340,787

$  305,670,808

Net loss per share attributable to common stockholders(1)

Basic

$          (3.30)

$          (2.42)

$          (6.74)

$          (4.83)

Diluted

$          (3.30)

$          (2.80)

$          (6.74)

$          (5.18)

Other comprehensive income (loss)

Net unrealized gains (losses) on investments, net of tax

$          (152)

$           293

$        (1,537)

$         3,845

Reclassification adjustment for realized gains on investments included in net loss

—

—

(5,702)

—

Foreign currency translation adjustments

(2,746)

8,973

(3,838)

12,870

Total other comprehensive income (loss)

(2,898)

9,266

(11,077)

16,715

Comprehensive loss

(1,037,749)

(530,166)

(2,074,272)

(888,888)

Accretion of redeemable convertible preferred stock (related party)

(224,425)

(199,823)

(330,387)

(564,748)

Comprehensive loss attributable to common stockholders

$    (1,262,174)

$      (729,989)

$    (2,404,659)

$    (1,453,636)

(1) The weighted-average shares outstanding attributable to common stockholders and net loss per share attributable to common stockholders have been adjusted for the prior periods presented to reflect the one-for-ten (1:10) reverse stock split effected on August 29, 2025.

LUCID GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Cash flows from operating activities:

Net loss

$  (1,034,851)

$     (539,432)

$  (2,063,195)

$     (905,603)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

122,222

111,088

238,634

209,047

Amortization of insurance premium

9,991

8,571

19,287

17,485

Non-cash operating lease cost

18,035

11,207

33,197

19,758

Stock-based compensation

46,609

56,319

107,639

83,834

Inventory and firm purchase commitments write-downs

299,271

179,888

527,588

327,806

Change in fair value of common stock warrant liability

—

(5,322)

—

(18,183)

Change in fair value of equity securities of a related party

(549)

(3,948)

9,672

9,505

Change in fair value of derivative liabilities and subscription agreements associated with redeemable convertible preferred stock (related party)

(102,790)

(111,475)

(110,165)

(393,175)

Net accretion of investment discounts/premiums

(149)

(5,582)

(1,090)

(19,062)

Gain on extinguishment of debt

—

(116,360)

—

(116,360)

Other non-cash items

4,945

6,582

2,140

9,300

Changes in operating assets and liabilities:

Accounts receivable (including $(91,303) and $(9,715) from a related party for the three months ended June 30, 2026 and 2025, and $(66,041) and $(5,599) for the six months ended June 30, 2026 and 2025, respectively)

(93,104)

(35,041)

(48,269)

(13,260)

Inventory

(269,157)

(379,573)

(845,554)

(586,043)

Prepaid expenses

(18,573)

(20,254)

(30,672)

(27,677)

Other assets

45,155

(55,212)

(82,290)

(55,824)

Accounts payable

(127,253)

58,890

(138,365)

58,513

Other liabilities

(122,033)

9,413

(26,447)

141,085

Net cash used in operating activities

(1,222,231)

(830,241)

(2,407,890)

(1,258,854)

Cash flows from investing activities:

Purchases of property, plant and equipment (including $(70,221) and $(25,675) from a related party for the three months ended June 30, 2026 and 2025, and $(117,355) and $(67,668) for the six months ended June 30, 2026 and 2025, respectively)

(253,827)

(182,663)

(506,994)

(343,904)

Proceeds from maturities of investments (including nil from a related party for the three months ended June 30, 2026 and 2025, and $50,000 and nil for the six months ended June 30, 2026 and 2025, respectively)

—

899,194

177,228

1,961,485

Proceeds from sale of investments

—

—

951,125

—

Purchases of investments (including nil from a related party for the three months ended June 30, 2026 and 2025, and nil and $(30,000) for the six months ended June 30, 2026 and 2025, respectively)

(28,512)

(22,528)

(28,512)

(309,557)

Net cash provided by (used in) investing activities

(282,339)

694,003

592,847

1,308,024

LUCID GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - continued

(Unaudited)

(in thousands)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Cash flows from financing activities:

Proceeds from issuance of common stock under 2026 Underwriting Agreement

292,500

—

292,500

—

Payments of issuance costs for the 2026 Underwriting Agreement

(579)

—

(579)

—

Proceeds from issuance of common stock under 2026 Subscription Agreement to a related party

200,000

—

200,000

—

Proceeds from issuance of Series C redeemable convertible preferred stock to a related party

550,000

—

550,000

—

Payments of issuance costs for Series C redeemable convertible preferred stock

(750)

—

(750)

—

Payments of transaction costs for the issuance of 2031 Notes

—

—

(1,165)

—

Proceeds from issuance of 2030 Notes

—

1,100,000

—

1,100,000

Payments of transaction costs for the issuance of 2030 Notes

—

(17,924)

—

(17,924)

Purchase of capped calls

—

(118,250)

—

(118,250)

Repurchase of 2026 Notes

—

(931,433)

—

(931,433)

Proceeds from borrowings from related parties

500,000

39,989

535,994

106,645

Proceeds from exercise of stock options

17

861

2,785

1,274

Proceeds from employee stock purchase plan

9,833

12,696

9,833

12,696

Tax withholding payments for net settlement of employee awards

(206)

(6,172)

(1,311)

(9,449)

Payment for finance lease liabilities

(1,249)

(822)

(2,461)

(1,376)

Payments for credit facility issuance costs to related parties

(3,750)

—

(3,750)

(507)

Net cash provided by financing activities

1,545,816

78,945

1,581,096

141,676

Net increase (decrease) in cash, cash equivalents, and restricted cash

41,246

(57,293)

(233,947)

190,846

Beginning cash, cash equivalents, and restricted cash

765,720

1,855,191

1,040,913

1,607,052

Ending cash, cash equivalents, and restricted cash

$      806,966

$    1,797,898

$      806,966

$    1,797,898

LUCID GROUP, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited)

(in thousands, except share and per share data)

Adjusted EBITDA

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net loss attributable to common stockholders, basic (GAAP)

$    (1,259,276)

$      (739,255)

$    (2,393,582)

$    (1,470,351)

Interest expense

47,817

23,749

88,890

35,632

Interest income

(9,634)

(44,318)

(22,738)

(96,527)

Provision for (benefit from) income taxes

1,050

(2,369)

1,227

(3,732)

Depreciation and amortization

122,222

111,088

238,634

209,047

Stock-based compensation

41,948

56,319

104,337

83,834

Workforce reduction charges

33,675

—

71,609

—

Change in fair value of common stock warrant liability

—

(5,322)

—

(18,183)

Change in fair value of equity securities of a related party

(549)

(3,948)

9,672

9,505

Change in fair value of derivative liabilities and subscription agreements associated with redeemable convertible preferred stock (related party)

(102,790)

(111,475)

(110,165)

(393,175)

Accretion of redeemable convertible preferred stock (related party)

224,425

199,823

330,387

564,748

Gain on extinguishment of debt

—

(116,360)

—

(116,360)

Adjusted EBITDA (non-GAAP)

$      (901,112)

$      (632,068)

$    (1,681,729)

$    (1,195,562)

Adjusted Net Loss Attributable to Common Stockholders

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net loss attributable to common stockholders, diluted (GAAP)

$    (1,259,276)

$      (855,306)

$    (2,393,582)

$    (1,582,428)

Stock-based compensation

41,948

56,319

104,337

83,834

Workforce reduction charges

33,675

—

71,609

—

Change in fair value of common stock warrant liability

—

(5,322)

—

(18,183)

Change in fair value of equity securities of a related party

(549)

(3,948)

9,672

9,505

Change in fair value of derivative liabilities and subscription agreements associated with redeemable convertible preferred stock (related party)

(102,790)

(111,475)

(110,165)

(393,175)

Accretion of redeemable convertible preferred stock (related party)

224,425

199,823

330,387

564,748

Adjusted net loss attributable to common stockholders, diluted (non-GAAP)

$    (1,062,567)

$      (719,909)

$    (1,987,742)

$    (1,335,699)

Adjusted Net Loss Per Share Attributable to Common Stockholders(1)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net loss per share attributable to common stockholders, diluted (GAAP)

$         (3.30)

$         (2.80)

$         (6.74)

$         (5.18)

Stock-based compensation

0.11

0.19

0.30

0.28

Workforce reduction charges

0.09

—

0.20

—

Change in fair value of common stock warrant liability

—

(0.02)

—

(0.06)

Change in fair value of equity securities of a related party

—

(0.01)

0.03

0.03

Change in fair value of derivative liabilities and subscription agreements associated with redeemable convertible preferred stock (related party)

(0.27)

(0.36)

(0.31)

(1.29)

Accretion of redeemable convertible preferred stock (related party)

0.59

0.65

0.93

1.85

Adjusted net loss per share attributable to common stockholders, diluted (non-GAAP)

$         (2.78)

$         (2.35)

$         (5.59)

$         (4.37)

Weighted-average shares outstanding attributable to common stockholders, diluted

382,098,609

305,788,272

355,340,787

305,670,808

(1) The weighted-average shares outstanding attributable to common stockholders, net loss per share attributable to common stockholders and adjusted net loss per share attributable to common stockholders have been adjusted for the prior periods presented to reflect the one-for-ten (1:10) reverse stock split effected on August 29, 2025.

LUCID GROUP, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - continued

(Unaudited)

(in thousands)

Free Cash Flow

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net cash used in operating activities (GAAP)

$    (1,222,231)

$      (830,241)

$    (2,407,890)

$    (1,258,854)

Capital expenditures

(253,827)

(182,663)

(506,994)

(343,904)

Free cash flow (non-GAAP)

$    (1,476,058)

$    (1,012,904)

$    (2,914,884)

$    (1,602,758)

SOURCE Lucid Group

Lucid Group (LCID -9.11%) stock soared this week ahead of its earnings report on Aug. 4. That wasn't the reason for the rally, though. A billionaire investor bought a stake in the company, helping shares jump 17% from last Friday's close, according to data provided by S&P Global Market Intelligence.

Lucid's largest shareholder is Saudi Arabia's sovereign wealth Public Investment Fund (PIF). The PIF has participated in multiple investment rounds, and the electric vehicle (EV) maker has a manufacturing facility in the Kingdom.

That plant currently handles vehicle assembly using parts imported from the U.S., but Lucid also plans to produce vehicles there in full. This week, a well-known Saudi investor also took a stake in the EV maker.

Image source: The Motley Fool.

Saudi billionaire Prince Alwaleed bin Talal Al Saud revealed a passive 5% ownership in Lucid Group in a Securities and Exchange Commission (SEC) filing on July 28, 2026. He acquired 19.5 million Class A common shares during a market downturn when Lucid's market value dropped below $2 billion.

The Saudi prince is known for his large investments in big, global tech companies. That explains why investors jumped into Lucid after learning of his stake. But blindly following another investor, no matter how successful, isn't necessarily a smart strategy.

Lucid's upcoming report on Tuesday, Aug. 4, after the market closes, is what investors should focus on. The company is counting on its new Gravity SUV and self-driving technology to boost sales. Any related news is what should guide investors' next move with Lucid stock.

Howard Smith has positions in Lucid Group. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

NEW YORK, July 28, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Lucid Group, Inc. (“Lucid” or the “Company”) (NASDAQ: LCID) and certain officers. The class action, filed in the United States District Court for the Northern District of California, and docketed under 26-cv-05128, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Lucid securities between February 25, 2026 and April 13, 2026, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are an investor who purchased or otherwise acquired Lucid securities during the Class Period, you have until July 28, 2026, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.  
 

[Click here for information about joining the class action]

Lucid is a technology company that designs, develops, manufactures, and sells electric vehicles, EV powertrains, and battery systems.  The Company’s products include, inter alia, the “Lucid Air” sedan and “Lucid Gravity” sport utility vehicle.

At all relevant times, Defendants touted purported enhancements to Lucid’s manufacturing and delivery capabilities and overall operations.  In particular, beginning in late-February 2026, Defendants represented that, in fiscal year (“FY”) 2025, they had implemented sustainable improvements in these areas, including with respect to the production and ramp-up of deliveries of the Lucid Gravity.  Defendants likewise asserted that these improvements would lead to profitable growth and performance efficiencies in FY 2026.  Unbeknownst to investors, however, Lucid’s performance was materially hampered by significant supplier and delivery issues in February 2026, putting the Company on track for dismal, rather than improved, performance in its first quarter (“Q1”) of 2026.

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i)  a supplier quality issue had significantly disrupted deliveries of the Lucid Gravity; (ii) the foregoing was likely to, and did, have a material negative impact on the Company’s business and financial results; (iii) accordingly, the Defendants had overstated the purported enhancements to Lucid’s manufacturing and delivery capabilities and overall operations; and (iv) as a result, Defendants’ public statements were materially false and misleading at all relevant times.

The truth began to emerge on April 3, 2026, when Lucid issued a press release “announc[ing its Q1 2026] production and delivery totals[.]”  Lucid revealed that it had “produced 5,500 vehicles” during Q1 2026, while only “deliver[ing] 3,093 vehicles.”  The press release further disclosed that, “[d]uring the quarter, deliveries of the Lucid Gravity were disrupted for 29 days due to a supplier quality issue with the second-row seats” and, “[a]s a result of this, the company’s ability to meet customer demand was impacted.”

The same day, Reuters published an article entitled “Lucid misses first-quarter vehicle delivery estimates on supplier disruptions”.  The article provided additional color and comments from Defendant Marc Winterhoff (“Winterhoff”), the Company’s Interim Chief Executive Officer (“CEO”), regarding Lucid’s disappointing Q1 2026 delivery results—most notably that deliveries were particularly impacted over a month earlier in February 2026, when Lucid paused to reverse an unauthorized supplier change and inspect vehicles already produced.

The next trading day, April 6, 2026, 24/7 Wall St. published an article entitled “Lucid Faces Biggest Disaster Ever”, which described the number of vehicles that Lucid delivered in Q1 2026 as “remarkably small”, stating that Lucid “cannot sell fewer than 4,000 vehicles and even pretend this is sustainable.” 

Following the foregoing news and disclosures, Lucid’s stock price fell $1.13 per share, or 11.35%, over the following two trading sessions, to close at $8.83 per share on April 7, 2026.

On April 14, 2026, Lucid filed a current report on Form 8-K with the United States Securities and Exchange Commission (“U.S.”), reporting, inter alia, its preliminary Q1 2026 financial results, including revenue in the range of $280 million to $284 million—well below the consensus estimate of $433.8 million—and losses from operations in the range of $985 million to $1.005 billion.

The same day, Lucid issued a press release revealing its plans for a $1.05 billion capital raise, including a $300 million public stock offering.

Following these disclosures, Lucid’s stock price fell $0.44 per share, or 4.76%, to close at $8.80 per share on April 14, 2026.

Then, on May 5, 2026, Lucid issued a press release reporting its Q1 2026 financial results, including GAAP earnings per share of -$3.46, missing consensus estimates by $0.83, a net loss of over $1 billion, and revenue of $282.47 million, missing consensus estimates by $76.04 million.  Defendant Winterhoff, as quoted in the press release, acknowledged that the previously disclosed “supplier issue . . . during the quarter had an impact,” and the need to “align[] production and delivery with customer demand.”  Lucid’s Chief Financial Officer, Defendant Taoufiq Boussaid, as quoted in the same press release, likewise acknowledged that “[w]e ended the quarter with elevated inventory that we expect to convert to revenue and cash as deliveries normalize[.]”

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com. 

Attorney advertising.  Prior results do not guarantee similar outcomes.    

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

New York, New York--(Newsfile Corp. - July 24, 2026) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Lucid Group, Inc. ("Lucid" or the "Company") (NASDAQ: LCID) on behalf of investors that purchased or otherwise acquired Lucid Group securities between February 25, 2026 and April 13, 2026 (the "Class Period").

CLICK HERE TO JOIN THE CASE

If you are an investor in Lucid and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (646) 315-9003.

DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than July 28, 2026 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.

On Friday April 3, 2026, at the close of the market, Lucid issued in a press release stating that the Company "produced 5,500 vehicles" during the first quarter of 2026, while only "deliver[ing] 3,093 vehicles." The press release further stated that "[d]uring the quarter, deliveries of the Lucid Gravity were disrupted for 29 days due to a supplier quality issue with the second-row seats" and, "[a]s result of this, the [C]ompany's ability to meet customer demand was impacted." That same day, Reuters published an article entitled "Lucid misses first-quarter vehicle delivery estimates on supplier disruptions." According to the article Chief Executive Officer Marc Winterhoff, said "[d]eliveries were particularly hit in February" when the Company "paused to reverse the change and inspect vehicles already produced."

In the first two trading sessions following the news, the price of Lucid shares declined by $1.13 per share, or 11.35%, to close at $8.83 per share on April 7, 2026.

Then, on April 14, 2026, Lucid announced preliminary first quarter 2026 financial results, including revenue in the range of $280 million to $284 million, well below the consensus estimate of $433.8 million according to the complaint, and loss from operations in the range of $985 million to $1.005 billion.

Following this news, the price of Lucid stock fell $0.44 per share, or 4.76%, to close at $8.80 per share on April 14, 2026.

The complaint alleges, among other things, that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) a supplier quality issue had significantly disrupted deliveries of the Lucid Gravity; (ii) the foregoing was likely to, and did, have a material negative impact on the Company's business and financial results; (iii) accordingly, the Defendants had overstated the purported enhancements to Lucid's manufacturing and delivery capabilities and overall operations; and (iv) as a result, Defendants' public statements were materially false and misleading at all relevant times.

WHY CONTACT KAPLAN FOX?

Kaplan Fox & Kilsheimer LLP is a nationally recognized law firm focused on complex litigation, with offices in New York, Oakland, Los Angeles, Chicago, and New Jersey. Founded in 1956, the firm has spent more than 50 years prosecuting securities, antitrust, and consumer protection actions in federal and state courts nationwide, recovering more than $10 billion for clients and the classes it has represented.

Kaplan Fox is widely regarded as one of the nation's premier plaintiffs' securities litigation firms and has received recognition from Chambers and Partners, Benchmark Litigation, Super Lawyers, and Lawdragon. Serving as lead or co-lead counsel in many landmark cases, the firm has secured some of the largest recoveries in the history of securities litigation, including a $2.425 billion recovery on behalf of Bank of America shareholders in In re Bank of America—the largest recovery ever obtained for claims under Section 14(a) of the Securities Exchange Act—$800 million recovered for the Arkansas Teacher Retirement System and other pension funds in ATRS v. Allianz Global Investors, and a $475 million settlement in In re Merrill Lynch.

For decades, Kaplan Fox has represented public pension funds, institutional investors, businesses, and individuals in high-stakes litigation. Through its successful advocacy and precedent-setting victories, the firm has helped shape important areas of securities and corporate law while advancing accountability and protecting investor interests.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Past results do not guarantee future outcomes.

If you have any questions about this Notice, your rights, or your interests, please contact:

Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.

https://www.kaplanfox.com/case/lucid-group-inc-class-action-alert-learn-more-now/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/306457

Source: Kaplan Fox & Kilsheimer LLP

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

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It was a wild two days for Lucid (LCID +8.57%) shareholders. On Tuesday, a report from an electric vehicle blog, citing two unnamed sources, claimed the luxury EV maker had brought in consulting firm AlixPartners to weigh a Chapter 11 bankruptcy filing or a take-private deal. Shares lost more than half their value at Tuesday's lows, triggering multiple volatility halts, before Lucid's denial helped the stock recover most of the damage. It still closed the day down 16%.

Then came Wednesday. Shares soared about 29% to close at $5.95 -- actually a bit higher than where the stock sat before the report broke.

Lucid called the rumors "completely false" in a statement filed with the SEC on Tuesday. The company also said it "has sufficient liquidity to carry its operations well into next year" and that it hasn't formed any special board committee to explore the scenarios described in the report. AlixPartners, Lucid explained, is helping it improve execution and operations "and nothing else" and hasn't recommended bankruptcy to management or the board.

But does Lucid's balance sheet actually back up that confidence?

Image source: Getty Images.

The liquidity math Lucid's first-quarter update in May showed the company ended the quarter with about $700 million in cash and cash equivalents, and about $3.2 billion in total liquidity, a figure that includes its undrawn credit capacity.

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But that snapshot misses the capital Lucid raised in April. The company announced a raise of about $1.05 billion, made up of $550 million in convertible preferred stock issued to an affiliate of Saudi Arabia's Public Investment Fund (PIF), $300 million from a common stock offering, and a $200 million equity investment from Uber Technologies. Uber's investment came alongside a partnership that is expected to put Lucid vehicles into a planned robotaxi service. Additionally, Lucid drew $500 million from a delayed-draw term loan provided by the PIF, leaving about $2 billion of that facility undrawn. Adding it all up, management put the company's pro forma total liquidity at about $4.7 billion.

That is a lot of capital. And it explains the confidence behind the company's denial.

The problem, however, is how quickly the money is going out. Lucid's net loss in the first quarter was about $1 billion, and even its non-GAAP (adjusted) EBITDA, which strips out many non-cash costs, was a loss of about $781 million.

Operations consumed about $1.2 billion in cash during the period, and capital expenditures added another $253 million. In other words, the company burned through more than $1.4 billion in a single quarter.

The same burn shows up in the liquidity trend, which fell from about $4.6 billion at the end of 2025 to $3.2 billion just one quarter later.

Run the math on that burn rate, and $4.7 billion covers a bit more than three quarters, carrying Lucid into early 2027. So the company's claim that it can operate "well into next year" checks out. However, the claim doesn't promise anything beyond that.

Why the rumor found an audience A report like Tuesday's only moves a stock this much when investors already have doubts -- and I'd argue Lucid has given them reasons. Second-quarter deliveries came in at 3,953 vehicles, an improvement from 3,093 in the first quarter. That's progress, but it's still a tiny volume for a company spending at this scale.

Revenue tells the same story. Lucid's first-quarter revenue of $282.5 million, though up 20% year over year, doesn't come close to covering the cost of running the business. Neither does a full year of sales: The company's revenue for all of 2025 was about $1.35 billion, less than it burned through in this year's first quarter alone.

Of course, the PIF, Lucid's majority shareholder through its affiliate, has repeatedly stepped up with fresh capital. In early July, Lucid drew another $800 million from that PIF-backed term loan, fresh evidence the backstop is still intact. The bad news is that the investment case still depends on it.

So, was Wednesday's 29% pop the start of a comeback? I wouldn't count on it. The balance sheet does support Lucid's denial -- there's no near-term liquidity cliff here. But a company burning more than $1 billion a quarter while delivering fewer than 4,000 vehicles will likely need more capital eventually, and more raises could mean more dilution for shareholders. Until the gap between spending and sales narrows meaningfully, I'll watch this one from the sidelines.

New York, New York--(Newsfile Corp. - July 13, 2026) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Lucid Group, Inc. ("Lucid" or the "Company") (NASDAQ: LCID) on behalf of investors that purchased or otherwise acquired Lucid Group securities between February 25, 2026 and April 13, 2026 (the "Class Period").

CLICK HERE TO JOIN THE CASE

If you are an investor in Lucid and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (646) 315-9003.

DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than July 28, 2026 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.

On Friday April 3, 2026, at the close of the market, Lucid issued in a press release stating that the Company "produced 5,500 vehicles" during the first quarter of 2026, while only "deliver[ing] 3,093 vehicles." The press release further stated that "[d]uring the quarter, deliveries of the Lucid Gravity were disrupted for 29 days due to a supplier quality issue with the second-row seats" and, "[a]s result of this, the [C]ompany's ability to meet customer demand was impacted." That same day, Reuters published an article entitled "Lucid misses first-quarter vehicle delivery estimates on supplier disruptions." According to the article Chief Executive Officer Marc Winterhoff, said "[d]eliveries were particularly hit in February" when the Company "paused to reverse the change and inspect vehicles already produced."

In the first two trading sessions following the news, the price of Lucid shares declined by $1.13 per share, or 11.35%, to close at $8.83 per share on April 7, 2026.

Then, on April 14, 2026, Lucid announced preliminary first quarter 2026 financial results, including revenue in the range of $280 million to $284 million, well below the consensus estimate of $433.8 million according to the complaint, and loss from operations in the range of $985 million to $1.005 billion.

Following this news, the price of Lucid stock fell $0.44 per share, or 4.76%, to close at $8.80 per share on April 14, 2026.

The complaint alleges, among other things, that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) a supplier quality issue had significantly disrupted deliveries of the Lucid Gravity; (ii) the foregoing was likely to, and did, have a material negative impact on the Company's business and financial results; (iii) accordingly, the Defendants had overstated the purported enhancements to Lucid's manufacturing and delivery capabilities and overall operations; and (iv) as a result, Defendants' public statements were materially false and misleading at all relevant times.

WHY CONTACT KAPLAN FOX?

Kaplan Fox & Kilsheimer LLP is a nationally recognized law firm focused on complex litigation, with offices in New York, Oakland, Los Angeles, Chicago, and New Jersey. Founded in 1956, the firm has spent more than 50 years prosecuting securities, antitrust, and consumer protection actions in federal and state courts nationwide, recovering more than $10 billion for clients and the classes it has represented.

Kaplan Fox is widely regarded as one of the nation's premier plaintiffs' securities litigation firms and has received recognition from Chambers and Partners, Benchmark Litigation, Super Lawyers, and Lawdragon. Serving as lead or co-lead counsel in many landmark cases, the firm has secured some of the largest recoveries in the history of securities litigation, including a $2.425 billion recovery on behalf of Bank of America shareholders in In re Bank of America-the largest recovery ever obtained for claims under Section 14(a) of the Securities Exchange Act-$800 million recovered for the Arkansas Teacher Retirement System and other pension funds in ATRS v. Allianz Global Investors, and a $475 million settlement in In re Merrill Lynch.

For decades, Kaplan Fox has represented public pension funds, institutional investors, businesses, and individuals in high-stakes litigation. Through its successful advocacy and precedent-setting victories, the firm has helped shape important areas of securities and corporate law while advancing accountability and protecting investor interests.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Past results do not guarantee future outcomes.

If you have any questions about this Notice, your rights, or your interests, please contact:

Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.

https://www.kaplanfox.com/case/lucid-group-inc-class-action-alert-learn-more-now/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304695

Source: Kaplan Fox & Kilsheimer LLP

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

Contact Us

Shares of luxury electric vehicle (EV) maker Lucid Group (LCID 8.86%) are tanking today. Investors can thank a rival EV maker for the move. Rivian Automotive announced a capital raise, and that has investors focusing on Lucid's capital needs, too.

Lucid shares dropped as much as 10%, and remained lower by 8.6% as of 12:15 p.m. ET.

Image source: The Motley Fool.

Lucid's capital source Lucid could arguably be out of business had it not been for its close relationship with the Saudi Arabian sovereign wealth fund. The Public Investment Fund (PIF) is Lucid's largest shareholder and has provided capital in several investment rounds in the past few years.

Most recently, Lucid withdrew $500 million in capital from the PIF-provided Delayed Draw Term Loan (DDTL). As of the end of Q1, there was still $2 billion remaining in undrawn capacity. After Rivian announced a common stock offering last night that should raise about $1.5 billion, investors may be scrutinizing Lucid's capital needs more closely.

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To be clear, the company still has a large cushion of available capital. After fresh capital was raised after the end of Q1, Lucid's total liquidity was approximately $4.7 billion. The company needs to steer investor focus to the underlying business now. Its new, luxury Gravity SUV needs to show some strong sales numbers when Lucid reports Q2 on Aug. 4.

That, along with any progress on its self-driving technology, could drive the share price higher in the coming months.

Howard Smith has positions in Lucid Group and Rivian Automotive. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Lucid Group (LCID +9.95%) stock has plummeted 91% over the past three years amid executive leadership changes, rising costs, slowing demand for electric vehicles, and production hurdles.

And there's no guarantee the next three years will be any better.

Here are some of the opportunities and challenges facing Lucid over the next three years, and why it's probably best to avoid Lucid stock for now.

Image source: Getty Images.

Lucid will likely be selling less-expensive EVs One of Lucid's biggest challenges and opportunities will be selling a smaller, cheaper vehicle. The company has already debuted the Earth and Cosmos crossovers, which have starting prices of under $50,000, according to Lucid. Sales of the vehicles aren't expected to begin until late this year or sometime in 2027, with the Cosmos launching first.

Lucid's goal is to appeal to more buyers, and those with smaller budgets. The lowest-priced Lucid Air sedan starts around $71,000, so the new models will be a big departure from its current luxury models. By offering a sub-$50,000 crossover, Lucid will have a vehicle priced close to the average new car.

If it succeeds, it could help solidify Lucid as an EV automaker for the masses, and not just a luxury carmaker.

Vehicle production could remain rocky Lucid has faced its fair share of production hiccups, the most recent of which came from issues with its seat supplier for its Gravity SUV.

In May, Lucid said it had "elevated inventory" levels it still needs to sell and that it was suspending its 2026 production guidance. The company had previously estimated it would produce between 25,000 and 27,000 vehicles this year.

That suspension came from the company's new CEO, Silvio Napoli, an automotive industry outsider who previously ran an elevator and escalator manufacturing company. Napoli is the third CEO for Lucid over the past few years.

Napoli will review the company's production and will issue updated guidance when the company reports its second-quarter results on Aug. 4. He's already made some controversial moves, laying off 18% of Lucid's employees and overhauling the executive suite with a new CFO, CTO, and other leadership positions.

New management could help Lucid achieve the operational efficiency it needs to be a successful automaker, but the next few years will be crucial. So far, Napoli has a long road ahead of him to get the company producing vehicles efficiently.

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Lucid's financial picture will still be a big question Lucid's first-quarter financial results showed just how much the company needs to improve. Its sales of nearly $283 million were far below Wall Street's consensus estimate of $440 million.

The company's loss per share of $3.46 was also a disappointment, well under the analysts' consensus estimate of $2.64 per share.

But it's not just that Lucid is missing Wall Street's expectations. The company has had to take several cash infusions from its largest investor, the Saudi Arabia Public Investment Fund (PIF), over the years to keep the lights on. The PIF owns an estimated 57% of the company and has already invested billions of dollars, including a $550 million investment earlier this year.

Lucid has $4.7 billion in liquidity right now, so it's not as if the company will shut down tomorrow. But its ongoing need for more capital -- which sometimes causes it to issue new shares and dilute existing shareholder value -- is a recurring theme for the company.

Unless Lucid's new vehicles start selling like hotcakes and its new CEO gets the company's production line humming, the next few years could look like the past three years.

If investors hoping to find the next Tesla only glanced at Lucid (LCID +1.05%), it's easy to understand the intrigue. Lucid designed and delivered some of the most technologically advanced and efficient electric vehicles (EVs) in the world. They helped set benchmarks in range and battery efficiency, and the company strung together eight consecutive quarters of record deliveries, which ran through the end of 2025. Lucid even had an extremely wealthy backer in Saudi Arabia's Public Investment Fund (PIF), which poured billions into the young EV maker.

If investors dug deeper, they would have found just as many, or more, flaws with the company, including production hiccups, massive cash burn, and a failure to drive down vehicle unit economics. Worse yet, red flags have been popping up recently, and the situation appears increasingly dire.

What now? Last week, Lucid announced it would lay off roughly 1,500 employees, or about 18% of its current workforce. And this isn't the first recent instance. Just four months ago, Lucid cut 12% of its workforce.

Public relations can try to spin this as a smart move to make the EV maker more competitive and cost-efficient moving forward, but the truth is this is a substantial workforce slashing across multiple moves in a short four-month span.

Lucid's recent red flags don't stop with its employee cuts, either. The company also confirmed last week that it eliminated the second production shift at its Casa Grande, Arizona, factory.

There isn't much of a positive spin you can put on this, as it's simply trying to match production with lower-than-anticipated consumer demand for its vehicles and to balance inventory that had become bloated after a supplier issue slowed deliveries of the Gravity SUV. During the first quarter of 2026, the company produced 5,500 vehicles and delivered only just over 3,000, prompting it to pull its guidance and indicating it will provide more insight during the second-quarter earnings call.

Image source: Lucid.

Jumping ship? Further complicating matters is that Lucid's recent CEO is a bit of an unusual choice, and executive turnover is mounting.

Marc Winterhoff, who did an admirable job as interim CEO for over a year and was supposed to stay on as chief operating officer after the new CEO, Silvio Napoli, took over, has now left the company. In a regulatory filing, Lucid noted that it had eliminated the COO position.

Winterhoff's departure follows a slew of executive turnover. Starting from the top, founder and longtime CEO Peter Rawlinson unexpectedly resigned in February 2025, followed by chief engineer Eric Back being let go later that year. More recently, Emad Dlala resigned earlier this month, which also seemed a bit odd after receiving a promotion just a few months earlier. In total, more than a dozen top executives have left the young EV maker in the past two years.

This makes the executive turnover more curious: Napoli appears to be an unusual pick to run the EV start-up. Napoli built a career at a Swiss company, Schindler Group, a maker of elevators and escalators -- while an industry outsider, his overall experience could still be valuable to Lucid.

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What it all means Lucid's moves to cut workforce and overhead by the third quarter are expected to cost the company roughly $32 million in severance pay but will save about $158 million in annualized costs. No matter how you slice it, those are not a level of cost cuts that can save Lucid as it heads toward a conundrum of cutting significant workforce while also preparing for its next more affordable mass-market vehicle, the Cosmos SUV, expected to start under $50,000.

While investors believed Lucid could produce high-quality vehicles, it never delivered the financial metrics to keep them on board. Lucid's net loss in 2025 hit $2.7 billion, flat with the prior year's $2.71 billion; its operating loss widened from $2.4 billion in 2024 to $3.5 billion in 2025; and its cash burn was a staggering $3.8 billion in 2025 alone.

It's easy to root for Lucid, but it is increasingly difficult to imagine how it becomes a viable investment and much easier to see how it could speed toward bankruptcy, especially if the PIF backing were to end.

Lucid (NASDAQ:LCID | LCID Price Prediction) at $5.19 faces a deteriorating risk/reward setup. The stock sits within striking distance of its 52-week low of $4.47, and the latest filings show a capital structure deteriorating faster than deliveries can compensate.

Lucid builds the luxury Air sedan and Gravity SUV from its Arizona plant, with a Saudi Arabia facility scheduled to add midsize production in 2027. Full-year 2025 revenue reached $1.35B on 17,840 vehicles produced, while the net loss came in at $2.70B and free cash flow at negative $3.83B. Shares are down 75.97% over one year and 97.91% over five.

Why The Bull Case Still Exists At $5 Bulls point to operational acceleration. Q4 2025 revenue jumped 122.9% year over year to $522.73M, beating consensus, and deliveries grew 72%. Management guides 25,000 to 27,000 vehicles in 2026, with Gravity ramping and a midsize platform on deck.

The partnership stack is real. Uber (NYSE:UBER) expanded its robotaxi commitment to a minimum of 35,000 vehicles and raised its equity stake to $500 million. NVIDIA (NASDAQ:NVDA) powers the Level 4 autonomy stack, Aston Martin licenses Lucid technology, and PIF continues to backstop the balance sheet. Pro forma liquidity stands at $4.7 billion, with runway into the second half of 2027.

The Balance Sheet Metric Bulls Cannot Explain Away Shareholders’ equity collapsed from $3.87B at year-end 2024 to $717M at year-end 2025, an erosion of more than 81% in twelve months. Retained earnings now sit at negative $16.64B. Q1 2026 was worse, with gross margin clocking negative 110.4% and the net loss rising to $1.0 billion versus $366 million a year earlier.

On a single day in early June, the interim CEO, CFO, and SVP of Finance disposed of shares at $5.68. Share count has roughly doubled since 2021, and every capital raise extends that dilution.

The Patience Argument A Hold case rests on the incoming CEO. Silvio Napoli took the role with the stated goal of building “a more self-sufficient company, one that progresses towards funding its own growth.” Guidance has been suspended pending his review. If unit costs compress as promised and Gravity deliveries convert the 2,407-vehicle inventory buildup into revenue, the burn rate could moderate. The cost of waiting, however, is more dilution.

What The Numbers Say Lucid currently trades at $5.19 with a market cap of roughly $2.09 billion. The consensus analyst target sits at $8.40, implying meaningful upside. The ratings split across 12 covering analysts tilts cautious:

Buy: 1 Hold: 8 Sell: 1 Strong Sell: 2 Year to date, LCID has fallen 50.9% against an S&P 500 that is roughly flat to modestly positive. Trailing EPS sits at -$13.14, book value per share is negative $1.064, and Polymarket traders price the odds of a 2026 bankruptcy announcement at 4.05%.

Why The Sell Call Wins At This Price At $5.19, Lucid is a Sell. Q1 2026 free cash flow was negative $1.44 billion. Cash on hand fell to $700 million before the latest raise. The $4.7 billion pro forma cushion only exists because PIF added $550 million in convertible preferred, Uber added $200 million in common, and Lucid sold another $300 million through a registered offering. Every quarter that gross margin stays at negative 110.4% consumes that cushion.

Watch three triggers in 2026: another capital raise that prints more shares, M2 construction delays in Saudi Arabia, and any miss on the 25,000 to 27,000 vehicle production target. The thesis flips only if gross margin turns convincingly positive and the company demonstrates a quarter of materially reduced burn without fresh equity issuance.

At current levels, Lucid’s survival plan and its dilution plan are effectively the same plan, which is a structural challenge for equity holders.

NEW YORK, June 23, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Lucid Group, Inc. (“Lucid” or the “Company”) (NASDAQ: LCID) and certain officers. The class action, filed in the United States District Court for the Northern District of California, and docketed under 26-cv-05128, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Lucid securities between February 25, 2026 and April 13, 2026, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are an investor who purchased or otherwise acquired Lucid securities during the Class Period, you have until July 28, 2026, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

[Click here for information about joining the class action]

Lucid is a technology company that designs, develops, manufactures, and sells electric vehicles, EV powertrains, and battery systems. The Company’s products include, inter alia, the “Lucid Air” sedan and “Lucid Gravity” sport utility vehicle.

At all relevant times, Defendants touted purported enhancements to Lucid’s manufacturing and delivery capabilities and overall operations. In particular, beginning in late-February 2026, Defendants represented that, in fiscal year (“FY”) 2025, they had implemented sustainable improvements in these areas, including with respect to the production and ramp-up of deliveries of the Lucid Gravity. Defendants likewise asserted that these improvements would lead to profitable growth and performance efficiencies in FY 2026. Unbeknownst to investors, however, Lucid’s performance was materially hampered by significant supplier and delivery issues in February 2026, putting the Company on track for dismal, rather than improved, performance in its first quarter (“Q1”) of 2026.

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) a supplier quality issue had significantly disrupted deliveries of the Lucid Gravity; (ii) the foregoing was likely to, and did, have a material negative impact on the Company’s business and financial results; (iii) accordingly, the Defendants had overstated the purported enhancements to Lucid’s manufacturing and delivery capabilities and overall operations; and (iv) as a result, Defendants’ public statements were materially false and misleading at all relevant times.

The truth began to emerge on April 3, 2026, when Lucid issued a press release “announc[ing its Q1 2026] production and delivery totals[.]” Lucid revealed that it had “produced 5,500 vehicles” during Q1 2026, while only “deliver[ing] 3,093 vehicles.” The press release further disclosed that, “[d]uring the quarter, deliveries of the Lucid Gravity were disrupted for 29 days due to a supplier quality issue with the second-row seats” and, “[a]s a result of this, the company’s ability to meet customer demand was impacted.”

The same day, Reuters published an article entitled “Lucid misses first-quarter vehicle delivery estimates on supplier disruptions”. The article provided additional color and comments from Defendant Marc Winterhoff (“Winterhoff”), the Company’s Interim Chief Executive Officer (“CEO”), regarding Lucid’s disappointing Q1 2026 delivery results—most notably that deliveries were particularly impacted over a month earlier in February 2026, when Lucid paused to reverse an unauthorized supplier change and inspect vehicles already produced.

The next trading day, April 6, 2026, 24/7 Wall St. published an article entitled “Lucid Faces Biggest Disaster Ever”, which described the number of vehicles that Lucid delivered in Q1 2026 as “remarkably small”, stating that Lucid “cannot sell fewer than 4,000 vehicles and even pretend this is sustainable.” 

Following the foregoing news and disclosures, Lucid’s stock price fell $1.13 per share, or 11.35%, over the following two trading sessions, to close at $8.83 per share on April 7, 2026.

On April 14, 2026, Lucid filed a current report on Form 8-K with the United States Securities and Exchange Commission (“U.S.”), reporting, inter alia, its preliminary Q1 2026 financial results, including revenue in the range of $280 million to $284 million—well below the consensus estimate of $433.8 million—and losses from operations in the range of $985 million to $1.005 billion.

The same day, Lucid issued a press release revealing its plans for a $1.05 billion capital raise, including a $300 million public stock offering.

Following these disclosures, Lucid’s stock price fell $0.44 per share, or 4.76%, to close at $8.80 per share on April 14, 2026.

Then, on May 5, 2026, Lucid issued a press release reporting its Q1 2026 financial results, including GAAP earnings per share of -$3.46, missing consensus estimates by $0.83, a net loss of over $1 billion, and revenue of $282.47 million, missing consensus estimates by $76.04 million. Defendant Winterhoff, as quoted in the press release, acknowledged that the previously disclosed “supplier issue . . . during the quarter had an impact,” and the need to “align[] production and delivery with customer demand.” Lucid’s Chief Financial Officer, Defendant Taoufiq Boussaid, as quoted in the same press release, likewise acknowledged that “[w]e ended the quarter with elevated inventory that we expect to convert to revenue and cash as deliveries normalize[.]”

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com. 

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CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980