EV maker Lucid reveals plans for robotaxi, positive free cash flow
The Lucid display was seen at the New York International Auto Show on April 16, 2025.
Danielle DeVries | CNBC
NEW YORK – Lucid Group The all-electric vehicle maker announced Thursday at its first investor day as a publicly traded company in nearly five years that it expects to be cash flow positive later this decade as it plans to grow its vehicle lineup and significantly increase its software and technology offerings.
The EV company aims to generate positive cash flow through market expansion into mid-size vehicles and robotaxis, as well as international expansion in markets such as Europe and Saudi Arabia. Executives told dozens of investors and Wall Street analysts on Thursday that they expect to see efficiency gains and a surge in software revenue with the introduction of advanced driver assistance systems and a new Lucid artificial intelligence assistant.
Lucid’s shares were down about 6% to 8% through much of the event, highlighting challenging market conditions for EV companies, even as the company presented its most detailed product and expansion plans to date.
Lucid’s cash flow target is based on the automaker’s current performance and decreasing demand For EVs in the US, although Lucid managed to increase sales and reduce losses, the company lost $2.7 billion in 2025 on $1.35 billion in revenue. It had negative free cash flow of $3.8 billion in 2025; This loss was approximately 31% higher than the previous year.
Marc Winterhoff, Lucid’s interim CEO – unexpectedly takes over the company founder Peter Rawlinson last year — echoing the theme of the investor event, saying the company’s “north star” is “accelerating toward profitability.” He and other executives declined to disclose the exact year in which the company aims to be cash flow positive.
The automaker has been trying to increase investor interest in the company for some time. launching a new mid-size vehicle at the end of this year. Its largest shareholder, the Saudi Arabian Public Investment Fund, also changed its investment strategy in the company from capital investment to revolving credit.
Robotaxi, autonomy plans
On March 12, 2026, Lucid previewed plans for a new two-seat robotaxi the company is developing from its upcoming midsize electric vehicle platform.
Michael Wayland / CNBC
Lucid on Thursday said it expects to generate about $1 billion in annual non-vehicle revenue through services such as recurring software subscriptions by the end of this decade. Plans for a two-seat robotaxi, including a design concept car, were also previewed, but no timeframe for the vehicle was specified.
Company executives spent much of the event discussing Lucid’s upcoming driving technologies, including robotaxi, and plans to launch a subscription service in early 2027 that costs between $69 and $199 per month, depending on capabilities.
“Autonomy plays an external role in Lucid’s future,” said Kay Stepper, Lucid’s vice president of advanced driving systems, adding that the company plans to offer self-driving vehicles under certain conditions by 2029.
Winterhoff and Uber President and Chief Operating Officer Andrew Macdonald announced plans to expand in a statement Thursday. previously described link For robotaxis to include upcoming medium-sized vehicles.
Expansion into midrange and autonomy is expected to significantly increase Lucid’s total addressable market (TAM) from $40 billion. available Air sedan and Gravity SUV That figure has risen to $700 billion, executives said Thursday.
Winterhoff said the company sees its autonomy technologies growing to reach Tesla’s current FSD next year.
medium size vehicles
Lucid on Thursday said it plans to produce three midsize vehicles this year, starting with a vehicle called Cosmos, followed by a model called Earth and an unnamed vehicle at an unspecified timeframe.
“We think these three unique products will give us the maximum opportunity to reach the broadest audience possible. And that audience is where we are today, but it’s a different audience than our current market,” said Derek Jenkins, Lucid’s senior vice president of design and brand.
Teaser image courtesy of Lucid of the mid-size vehicle behind the current Gravity SUV.
Lucid
The three midsize vehicles are aimed at luxury buyers, young “trendsetters” and outdoor enthusiasts, Jenkins said. The last one will be a direct rival to other EV contenders Rivian AutomotiveIt’s expected to launch a new R2 midsize vehicle this spring, starting with a roughly $58,000 version of the vehicle.
Lucid said its midsize vehicle is expected to start at around $50,000. This would position it in line with the average transaction prices of new vehicles in the US, as well as entry-level models of the Rivian R2.
Both Rivian and Lucid are trying to reassure investors that they can not only compete in a troubled EV market, but also evolve through the expansion of new vehicles and technologies to better compete against the U.S. EV leader. Tesla’s. Lucid says its new midsize EV platform will be class-leading in terms of efficiency, and that’s what the company strives to do with all of its vehicles.
Both have suggested they have sufficient capital for short-term ventures, but their long-term sustainability remains an important question for investors.
Lucid said its total liquidity of $5.5 billion, including a nearly $2 billion delayed term loan facility from Saudi PIF, is sufficient to get through the first half of 2027.
Rivian finished the fourth quarter with $6.59 billion in total liquidity, including approximately $6.1 billion in cash, cash equivalents and short-term investments; The company is trying to increase production of mid-sized vehicles and new autonomy technologies this year.
