Lucid cuts back its expected 2025 total output as it ramps up Gravity production, expecting to assemble between 18,000 and 20,000 vehicles.
Lucid builds its vehicles in the US, but like others in the industry this year it faced unexpected issues with sourcing materials, which are now subject to steep tariffs.
The automaker recently struck a deal with Uber to build thousands of Gravity robotaxis over the next several years, though there are longer-term doubts about the profitability of robotaxis per se.
Lucid revealed a more sour than expected forecast for the rest of 2025 this week in posting its second-quarter results, with the company producing 3,863 electric vehicles in the past three months and delivering 3,309 in the same time frame.
These results represented a 38.2% bump over the second quarter of 2024, but they were upstaged by the unexpected tariffs that materialized during the second quarter, dinging its profit margin.
"We had our sixth consecutive quarter of record deliveries in Q2 and expect to continue this trend as we ramp up Lucid Gravity production in the second half of the year," said Marc Winterhoff, interim CEO at Lucid.
As a result, Lucid has gone as far as cutting back its annual production forecast, with the automaker now expected to produce between 18,000 and 20,000 vehicles by year's end, instead of the predicted 20,000.
This may seem like a trivial downgrade, but it was enough to depress Lucid stock by 10% this past Tuesday.
The reason, we suspect, is that these trends are indicative of a new landscape that Lucid will have to contend with just as it works to get Gravity SUV production up to full speed.
Tariff Trouble, Despite US Manufacturing
And it mostly has to do with sourcing raw materials used in EV manufacturing, which are imported, even though Lucid itself is one of the rare few automakers building its vehicles in the US.
New US tariffs pushed by the White House on crucial metals are altering the supply chain equation in real time and are far from settled, for now saddling EV makers with a US presence with higher materials costs.
Admittedly, it's an odd problem to have for an EV maker whose manufacturing presence needs no reshoring.
Still, Lucid put a brave face on an increasingly uncertain future that is also affecting its rivals, including Tesla.
"We delivered solid performance despite a challenging macroeconomic backdrop, thanks to the adaptability and focus of our team in navigating a dynamic environment," said Taoufiq Boussaid, CFO at Lucid.
One development that has buoyed Lucid in recent weeks was its deal with Uber to produce some 20,000 Lucid Gravity SUVs to be converted into robotaxis—an ambitious but risky plan that also includes autonomous software and hardware from Nuro AI.
The longer-term profitability of such robotaxis still remains a gamble, even if it will generate orders for Gravity SUVs in the near term.
Lucid would, of course, prefer to sell Gravity SUVs at non-discount retail prices to private buyers, though the 20,000-vehicle order over six years will still help it sales-wise.
"We are focused on business fundamentals to achieve our near-term goals: disciplined cost management, brand building, and continuing to execute our Lucid Gravity launch ramp," Boussaid added.
Lucid also welcomed actor Timothée Chalamet as its first global brand ambassador, aiming to close an awareness gap with some of its better-known rivals—something Lucid neglected to focus on in its early years, just as Tesla had shunned advertising of any kind.
That strategy seems to have had its limits, possibly leading to gaps in brand perception in the US market, which is why Lucid will now work harder to connect with buyers.
Does Lucid have enough brand recognition outside the EV sphere, or does it need more advertising? Let us know what you think in the comments below.
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