Lucid has withdrawn its 2026 production forecast as newly appointed CEO Silvio Napoli begins a detailed evaluation of the company’s operations, highlighting continued difficulties in balancing manufacturing levels with customer demand. The automaker admitted it is dealing with excess inventory, suggesting vehicle output has been exceeding actual sales.
Just last month, Lucid reaffirmed its goal of building between 25,000 and 27,000 vehicles this year, despite a temporary supplier issue that delayed Gravity SUV deliveries for almost a month.
That projection has now been completely suspended. The company described the current situation as one of “elevated inventory,” signaling a widening mismatch between production and demand.
“With Silvio now leading the company and reviewing operations, we are pausing our earlier guidance and will share an updated outlook during the Q2 earnings call,” said Lucid CFO Taoufiq Boussaid.
Lucid Gravity Touring
During the first quarter, Lucid manufactured roughly 5,500 vehicles, representing a 149% increase compared with the same period last year, largely due to the introduction of the Gravity SUV. However, deliveries failed to keep pace, with only 3,093 vehicles handed over to customers.
The company’s inventory climbed significantly to nearly $1.47 billion by the end of March, showing a growing gap between production volume and customer deliveries. This was a rise from inventory levels recorded at the end of 2025.
Financial results for the quarter were similarly uneven. Revenue increased 20% year over year to $282.5 million, although it remained far below analysts’ expectations of approximately $440 million. Meanwhile, Lucid continued to post heavy losses, reporting a net quarterly loss of more than $1 billion and free cash flow of around $1.44 billion.
Lucid stated that its current funding should sustain operations through the latter half of 2027, but emphasized the need to better synchronize production with market demand to reduce financial pressure.
Earlier this year, the company introduced extensive cost-reduction measures. In February, it announced plans to cut 12% of its salaried workforce worldwide amid slowing demand in the U.S. market.
Uber Robotaxi Partnership with Lucid and Nuro
According to a filing submitted to the SEC in May, the layoffs are expected to result in short-term costs of roughly $40 million, but could deliver savings of up to $500 million over the next several years.
During its earnings presentation, Lucid also confirmed that production of its midsize vehicle platform is scheduled to increase in 2027. Interim CEO Mark Winterhoff reiterated that the architecture will underpin three upcoming models: Cosmos, Earth, and another unnamed vehicle.
The company further stated that it remains on schedule to begin manufacturing an autonomous version of the Gravity SUV in the fourth quarter. The self-driving model is being developed for a robotaxi collaboration with Uber and Nuro, which is expected to involve at least 35,000 vehicles across both the Gravity lineup and future midsize platforms.
