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Lucid announced a new performance-focused version of its upcoming SUV called the Gravity GT-S. This model follows the design and power approach of the company's high-end Sapphire sedan, aiming to combine speed with the utility of a larger vehicle.
Expanding the Gravity lineup is a key part of the company's plan to move beyond selling just one sedan model. While high-performance versions like this help build the brand's reputation for technology, the company's long-term health still depends on its ability to manufacture and deliver these SUVs in large enough numbers to stop losing money on every vehicle it sells.
Source: PRNewsWire
Lucid filed a prospectus supplement to register millions of shares for resale by existing investors. This includes shares that could be created if certain preferred stock is converted into common stock. This filing does not mean the company is selling new shares to raise more cash right now. Instead, it handles the paperwork required to let current large investors sell the shares they already own. While this can sometimes lead to more shares hitting the market at once, it is a routine administrative step for a company with large institutional backers like the Saudi Public Investment Fund.
Source: PRNewsWire
The company's new CEO, Silvio Napoli, is delaying the launch of the Cosmos crossover SUV by nearly a year. Originally expected sooner, the vehicle is now slated for the second half of 2027. Napoli noted that the company previously released cars before they were fully ready, which hurt the brand's reputation for quality.
This is a difficult trade-off for the business. While fixing quality issues is vital for a luxury brand, the Cosmos was supposed to be the more affordable model that would help the company reach a much wider group of buyers. Pushing it back means Lucid will have to rely on its expensive sedans and the upcoming Gravity SUV to bring in cash for longer than planned.
The company lost $3.30 per share last quarter, which was significantly worse than the $2.36 loss analysts expected. While revenue grew to $405 million, the business is still spending far more than it brings in. To address this, management is launching a "Back-to-Basics" program aimed at finding $1.4 billion in cash savings this year by cutting spending and intentionally slowing down production to clear out unsold cars.
This reset shows how much pressure the company is under as the market for expensive electric vehicles cools. Lucid ended the quarter with $3 billion in liquidity, which it says will last into 2027. However, the path to making money now depends on successfully launching the Gravity SUV and a new robotaxi program while simultaneously shrinking its costs. For now, the business remains dependent on its ability to raise more money or receive further support from its majority owners in Saudi Arabia.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Prince Alwaleed bin Talal Al Saud, a prominent member of the Saudi royal family, has acquired a 5 percent stake in the company. This investment is separate from the majority ownership already held by the Saudi Public Investment Fund, the country's main sovereign wealth fund.
For a company that is currently losing money on every car it makes, having deep-pocketed backers is essential for survival. This move signals that the Saudi royal family remains committed to supporting the business as it tries to reach the scale needed to become profitable. It provides a vote of confidence during a period when many other electric vehicle startups are struggling to stay afloat.
The company has missed analyst earnings targets in seven of the last eight quarters. This suggests the business is burning through cash faster than even cautious forecasts expected.
| Expectation | |
|---|---|
| EPS | $-2.30 |
| Revenue | $518M |
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