Lucid suspends production guidance amid new CEO business review

DETROIT — Lucid Group suspended its vehicle production guidance for the year as its incoming CEO evaluates the all-electric vehicle manufacturer’s business operations, including the potential for lower output of EVs.

The company on Tuesday also said it needs to lower its “elevated inventory” of vehicles, which for automakers has historically meant decreasing or idling vehicle production.

A company spokesman told CNBC that there is currently no plan to idle its sole U.S. plant in Arizona, but incoming CEO Silvio Napoli said he is continuing to evaluate Lucid’s business.

“An essential objective over time is to build a more cost-efficient company, one that progresses in funding its own growth. That means being rigorous in delivering our commitments,” Napoli said Tuesday on Lucid’s quarterly results call with investors. “In simple words, this means making clear choices on where to invest and, just as importantly, where not to.”

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

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

Lucid has produced roughly 3,200 more vehicles than it has sold since 2024, according to its annual production and deliveries. That includes a difference of roughly 2,000 units last year and 2,400 vehicles during the first quarter of 2026.

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

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

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

• Loss per share: $3.46 vs. a loss of $2.64 expected
• Revenue: $282.5 million vs. $440.4 million expected

The company’s revenue increased roughly 20% year-over-year but was far lower than the 87.4% jump analysts were expecting, according to LSEG.

The all-electric vehicle maker said a seat supplier issue “significantly affected” deliveries of its crucial Lucid Gravity SUV during the quarter that resulted in a stop-sale of the vehicle due to safety concerns.

Boussaid said the seat issue caused a more than $200 million revenue impairment during 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 through the second half of 2027. It ended the first quarter with approximately $4.7 billion, including a recent capital raise and delayed draw term loan provided by PIF.

Lucid on Tuesday said production of a new vehicle plant in Saudi Arabia continues despite the ongoing war in nearby Iran. The company said it has not experienced any significant interruptions to the facility other than some delays in shipping.

The company also said it is adjusting its production reporting to count vehicles once they complete the company’s “factory gating process,” which includes vehicles that may not be completely built and are sent to operations elsewhere for completion.