Lucid Air Lowers Production Forecast Amid Disappointing Earnings

TYSONS, Virginia — Lucid Motors softened its production outlook for the year as it reported disappointing second-quarter earnings on Tuesday. The electric vehicle maker now expects to produce between 18,000 and 20,000 vehicles in 2024, down from its previous goal of 20,000.

Following the announcement, shares of Lucid fell more than 5% in after-hours trading. In the three months ending June 30, the company reported a net loss of $855 million, or 28 cents per share. This is an increase compared to a net loss of $790 million, or 34 cents per share, during the same period last year.

Excluding restructuring costs and other one-time expenses, Lucid posted an adjusted loss of 24 cents per share for the quarter. The company’s total costs and expenses rose approximately 7.5% year-over-year, reaching $1.06 billion, while its total liquidity stood at about $4.86 billion by the end of the quarter.

In a recent partnership, Lucid announced plans to introduce more than 20,000 robotaxis over the next six years, aiming to enhance brand awareness. Actor Timothée Chalamet has been featured in a new ad campaign to help promote the brand.

CFO Taoufiq Boussaid emphasized the company’s focus on strong business fundamentals, highlighting disciplined cost management, brand building, and the upcoming launch of the Lucid Gravity. In July, the company reported producing 3,309 vehicles in the second quarter, marking a 38.2% increase from the same period in 2023, though still falling short of analyst projections.

Despite growing demand for electric vehicles, consumers have shown a preference for traditional vehicle models. The industry is also preparing for changes from a new tax-and-spending bill signed into law on July 4, which will eliminate certain incentives for electric vehicle purchases after September 30. Since the beginning of the year, Lucid’s stock has fallen nearly 19% as of Tuesday’s close.