Lucid Motors is facing early production challenges with its first-ever SUV, the Gravity, signaling a slower-than-expected rollout. During its Q2 earnings call, the EV maker revealed it is lowering its 2025 production forecast due to ongoing supply chain challenges most notably, a shortage of rare earth magnets sourced from China.
Lucid has revised its 2025 production forecast to between 18,000 and 20,000 vehicles, slightly lower than its earlier target of 20,000. Interim CEO Marc Winterhoff cited two key issues slowing down Gravity’s ramp-up: suppliers struggling to scale up and limited availability of magnets impacted by China’s export restrictions introduced in April amid escalating trade tensions.
Acknowledging the production hurdles, Lucid’s interim CEO Marc Winterhoff admitted, “We are not where we want to be with Lucid Gravity production.” Still, he reassured investors that the company has secured alternative sources for the critical magnets and now has enough supply to maintain production through year-end.
Lucid plans to significantly scale up production in the latter half of 2025 to make up for the initial setbacks. While Gravity deliveries began late last year for a select group close to the company, broader customer deliveries initially slated for late April have faced delays.
Lucid Motors reported €221 million in Q2 revenue, falling short of Wall Street’s projected €239 million. The company also reported a net loss of €674 million for the quarter, leading to a roughly 9% drop in its stock during after-hours trading. Despite the financial setback, Lucid highlighted its strong liquidity position, ending the quarter with €4.15 billion in cash and equivalents enough, it says, to support operations and ongoing investments through the second half of 2026.
Much is riding on the success of the Lucid Gravity, the automaker’s first SUV and a crucial step in tapping into the fast-growing electric SUV market. As Lucid looks to scale beyond its flagship Air sedan, the Gravity is seen as a pivotal model for driving higher sales volumes and moving the company closer to profitability.
Despite ongoing production hurdles, Lucid reached a key milestone in Q2 delivering a record 3,309 vehicles and producing 3,863 units at its Casa Grande, Arizona factory. This marks the company’s sixth straight quarter of record-breaking deliveries, signaling steady progress even amid growing pains.
Lucid Motors confirmed during its earnings call that it remains on schedule to unveil an all-new, more affordable midsize EV platform in 2026. Slated to start at around €43,000, the upcoming lineup aims to compete directly with mass-market electric models like the Tesla Model Y and Model 3.
In a push to strengthen both its brand and financial outlook, Lucid also announced a long-term partnership with actor Timothée Chalamet as a global brand ambassador, alongside a major deal with Uber and autonomous tech company Nuro. As part of the partnership, Lucid will provide 20,000 electric robotaxis, while Uber is investing €256 million to help bring the fleet to market.
What are your thoughts on Lucid’s bold push into the mainstream EV market with a more affordable model and its partnership with Timothée Chalamet and Uber? Do you think these moves can help the company gain ground against Tesla and other major players? Let us know in the comments below!
