Lucid reported a larger-than-expected adjusted loss for the fourth quarter, intensifying pressure on the electric vehicle manufacturer to reduce expenses as it scales output of its newly introduced Gravity sport utility vehicle and prepares a mid-sized model slated for later this year. The stock fell 4% in after-market trading.
Looking ahead, Lucid forecast a production increase for 2026 that could exceed 50% following nearly a doubling of output in the prior year. The company last week reduced its U.S. workforce by 12% in an effort to lower costs amid a tougher market for electric vehicles after the U.S. ended a $7,500 federal tax credit for new EVs in September.
Backed by Saudi Arabia's Public Investment Fund, Lucid is pinning short-term hopes on the Gravity SUV, which has a starting price of $79,900, to bolster sales over the coming months. Executives view the success of the forthcoming midsize EV platform - expected late this year with a starting price below $50,000 - as pivotal for reaching a wider pool of buyers and shaping the maker's medium-term trajectory.
For 2026, the automaker said it intends to produce between 25,000 and 27,000 vehicles. Production totaled 17,840 vehicles last year. Lucid disclosed it built 7,874 vehicles in the fourth quarter, revising the prior figure downward from 8,412 after determining 538 units had not completed certain procedures required to be categorized as produced.
The company delivered a record 5,345 vehicles in the fourth quarter, surpassing analysts' expectations, according to Visible Alpha. Revenue for the quarter ended in December rose 123% to $522.7 million, ahead of the analysts' average estimate of $468 million compiled by LSEG.
Despite the revenue gain, Lucid posted an adjusted loss of $3.08 per share for the quarter, deeper than the expected loss of $2.62 per share. The firm deployed discounts and promotional incentives on its luxury Air sedans last year to appeal to consumers pulling back on high-ticket purchases amid elevated borrowing costs.
Beyond the vehicle lineup, Lucid continues to develop its advanced driver-assistance system and related software, areas the company views as strategically important and potentially lucrative. Last year Lucid announced partnerships with Uber and self-driving startup Nuro with plans to launch a robotaxi fleet.
Lucid also reported encountering production hurdles, supply-chain disruptions and rising costs in 2025, factors that the company said were influenced in part by shifts in U.S. tariff policy under President Donald Trump. Those operational headwinds contributed to the broader financial pressure reflected in the quarterly results.
Summary
Lucid's fourth-quarter results show higher-than-expected losses even as deliveries and revenue improved year over year. The automaker is cutting costs through layoffs, emphasizing its Gravity SUV and an upcoming midsize model, and projecting a marked increase in production for 2026.
Key points
- Lucid recorded an adjusted loss of $3.08 per share in Q4, wider than the $2.62-per-share estimate.
- The company produced 7,874 vehicles in Q4 after a downward revision and delivered a record 5,345 vehicles that quarter; revenue rose 123% to $522.7 million.
- Lucid plans to produce 25,000 to 27,000 vehicles in 2026, forecasting a production increase that could exceed 50% from last year.
Risks and uncertainties
- Market demand risk: The end of the $7,500 federal EV tax credit and high borrowing costs have pressured consumer appetite for high-ticket EV purchases, prompting discounts and promotional offers.
- Operational risk: Production challenges, supply-chain disruptions and rising costs in 2025 have strained margins and operational performance.
- Policy and tariff risk: Changes in U.S. tariff policy have affected costs and supply chains, introducing uncertainty into production planning and expense forecasts.