Lucid suspends production guidance amid new CEO business review

DETROIT — Lucid Group Its new CEO suspended this year’s vehicle production guidance while he evaluates the all-electric vehicle maker’s business operations, including the lower production potential of EVs.

The company also said Tuesday that it must reduce its “surging vehicle inventory,” which for automakers has historically meant reducing or idling vehicle production.

A company spokesperson told CNBC that there are currently no plans to decommission its sole U.S. facility in Arizona, but new CEO Silvio Napoli said Lucid continues to evaluate its business.

“One of the key goals over time is to build a more cost-effective company that moves forward with financing its own growth. This means being diligent in delivering on our commitments,” Napoli said at Lucid’s quarterly results meeting with investors on Tuesday. he said. “Simply put, this means making clear choices about where to invest and, more importantly, where not to invest.”

Napoli said Lucid plans to review the company’s operations over the next few weeks before updating investors on the company’s guidance when it reports second-quarter results at an undetermined date.

The company’s previous production forecast was between 25,000 and 27,000 units in 2026. Lucid executives said there are plans for cost-cutting, autonomous vehicles. Uber and Nuro and the “path to profitability” outlined at the company’s investor day in March remain intact.

Based on its annual production and deliveries, Lucid has produced approximately 3,200 more vehicles than it has sold since 2024. This includes the difference between around 2,000 units last year and 2,400 vehicles in the first quarter of 2026.

The guidance withdrawn was as reported by the company first quarter results These were in line with preliminary results the company released a month ago, but still significantly missed Wall Street’s expectations.

“We ended the quarter with high inventory that we expect to translate into revenue and cash as deliveries normalize, while maintaining alignment between production and sales tempo. Our focus is on disciplined execution – driving structural cost improvements, managing capital efficiently, and increasing operating leverage as we scale,” Lucid CFO Taoufiq Boussaid said in a statement. he said.

Here’s how the company performed in the first quarter compared to average forecasts compiled by LSEG:

• Loss per share: $3.46 versus an expected loss of $2.64
• Revenues: $282.5 million while the expectation was $440.4 million

According to LSEG, the company’s revenue rose nearly 20% year-over-year, but was well below the 87.4% increase analysts expected.

The all-electric vehicle maker said a seat supplier issue “significantly impacted” deliveries of its critical Lucid Gravity SUV in the quarter, leading to a halt in sales of the vehicle due to safety concerns.

Boussaid said the seating issue caused more than $200 million in lost revenue in the first quarter.

Lucid produced 5,500 vehicles and delivered 3,093 vehicles in the first quarter of 2026.

The automaker, which is heavily backed by Saudi Arabia’s Public Investment Fund, said it has sufficient liquidity until the second half of 2027. It finished the first quarter with approximately $4.7 billion, including the recent capital increase and the delayed maturity loan provided by PIF.

Lucid said Tuesday that production at its new vehicle factory in Saudi Arabia is continuing despite the ongoing war in nearby Iran. The company said it has not experienced any major disruptions to the facility, other than some delays in shipping.

The company said it also adjusted its production report to count vehicles after completing the company’s “factory transition process,” which includes vehicles that cannot be fully built and are sent to operations elsewhere to be completed.