Lucid Motors’ EV output falls to lowest level in almost 2 years

Lucid Motors has announced that its electric vehicle production fell to its lowest level in nearly two years during the third quarter. The luxury EV maker built 2,954 vehicles in the quarter, marking a significant 54% decline compared to the same period a year ago. This drop reflects a conscious decision by management to curb manufacturing output in order to better match actual market demand, following quarters of struggling to find enough buyers for its luxury models.

The recent figures highlight ongoing challenges for Lucid as it tries to establish a sustainable footing in the competitive electric vehicle landscape. The third quarter marked the third consecutive period in which production numbers have decreased. Output has not been this low since the first quarter of 2025, a time when the company was just commencing manufacturing of its second vehicle, the Gravity SUV. Deliveries also remained subdued, with 3,806 EVs shipped to customers, staying roughly flat sequentially but trailing previous periods.

For most of its recent history, Lucid has faced a persistent overproduction issue, building more cars than it successfully delivered in five out of the last six quarters. To combat these struggles, the automaker brought in a new chief executive, Silvio Napoli, who has spent recent months executing a drastic simplification strategy. His turnaround efforts have included cutting approximately 1,500 jobs, streamlining corporate leadership, and scaling back factory shifts in Arizona to target $1.4 billion in cost reductions.

In addition to restructuring operations, Lucid has chosen to delay the release of its third vehicle, the Cosmos, which was intended to offer a more affordable option starting under $50,000. Napoli emphasized that the company must avoid past mistakes of rushing vehicles to market before they are fully ready. This cautious approach contrasts sharply with competitors like Rivian, which recently achieved record sales numbers following the introduction of its lower-priced R2 SUV.

Lucid's current market position contrasts heavily with the ambitious forecasts made when the company went public via a special purpose acquisition company in 2021. Back then, management projected shipping up to 90,000 vehicles by 2024 while securing billions in funding. Acknowledging these missteps, Napoli candidly addressed shareholders, noting that the company had previously failed to execute consistently, missed commitments, and allowed internal complexity to hinder progress. Moving forward, Lucid aims to rebuild its foundation carefully rather than chasing unsustainable volume.