(MENAFN- AsiaNet News)

• Lucid trimmed its 2025 production guidance to about 18,000 vehicles and said it faces ongoing supply-chain headwinds, though the company expects to hit the lower end of that range.
• The company said its upcoming midsize EV is tracking below internal cost targets, aided by supplier efficiencies.
• Liquidity remains strong with a $2 billion undrawn facility from Saudi Arabia's Public Investment Fund, extending Lucid's cash runway into the first half of 2027.

Lucid Group said its upcoming midsize electric vehicle is shaping up to be cheaper to build than expected, even as the luxury EV maker trimmed its full-year production outlook and secured new financing that extends its liquidity runway into 2027.

Midsize EV Costs Coming In Below Targets

Interim CEO Marc Winterhoff said during the company's third-quarter earnings call that sourcing for the midsize platform, set to begin production at the end of 2026, is“well underway,” with suppliers offering bill-of-materials (BOM) costs below Lucid's internal estimates.“In many instances, we are coming in below our own should-cost calculations,” Winterhoff said, citing increased supplier confidence and improving scale economics.

The midsize car will be produced at Lucid's Arizona plant and in Saudi Arabia, leveraging the company's new Atlas drive unit. Winterhoff said Atlas delivers lower weight, higher efficiency, and fewer components, while also introducing a non-rare-earth variant to mitigate recent magnet shortages and reduce costs.

CFO Taoufiq Boussaid added that 2025 capital expenditure is projected at $1 billion to $1.2 billion, with an emphasis on automation and cost discipline.“The goal is [a] clear move toward breakeven as mix, scale, and cost actions compound,” he said.

Extended Runway With $2 Billion Undrawn PIF Facility

Lucid strengthened its balance sheet by increasing its delayed-draw term loan facility with its majority shareholder, Saudi Arabia's Public Investment Fund (PIF), from $750 million to nearly $2 billion. The facility remains undrawn, extending Lucid's cash runway into the first half of 2027.

At the end of the third quarter, Lucid held $4.2 billion in total liquidity, including $3 billion in cash and $1.2 billion in available credit. The company said it will continue evaluating public-market options“when the appropriate conditions materialize.”

Lowered Production Outlook Amid Industry Headwinds

Lucid lowered its full-year production target to about 18,000 vehicles, narrowing its earlier range of 18,000 to 20,000. The company has built around 10,000 vehicles so far this year, leaving roughly 8,000 to complete in the fourth quarter.

Interim CEO Marc Winterhoff said in an interview that Lucid still expects to reach the lower end of its revised range despite a challenging environment. He said the company remains“intensely focused” on increasing output and working through supply-chain issues that have disrupted automakers globally, according to a Bloomberg report.

Lucid has been plagued by production constraints and slower-than-anticipated demand as EV sales growth has cooled across the sector. Wall Street has been looking for roughly 16,000 vehicle sales for the year, Barron's reported, factoring in some pessimism that production will not all result in deliveries

The company also noted increased input costs and trade policy uncertainty as headwinds affecting the industry.

Operational Progress And Demand Trends

Despite supply-chain disruptions, including shortages of magnets, aluminum, and chips, Lucid posted its seventh consecutive quarter of record deliveries, shipping 4,078 vehicles, up 47% year over year. Revenue climbed 68% to $337 million.

Winterhoff said Gravity SUVs are expected to make up the majority of fourth-quarter (Q4) production. He also highlighted that October deliveries rose even as the broader U.S. EV market weakened.

Partnerships To Reshape Business Model

Lucid reiterated that partnerships with Uber, Nuro and NVIDIA will help it scale autonomy and software-defined capabilities with little capital outlay. It plans to provide a roadmap to profitability at an Investor Day in early 2026.

CFO Boussaid said these collaborations create“a capital-efficient path to growth” and open the door to recurring revenue streams from software and data services, reshaping Lucid's financial model beyond car sales.

Stocktwits Users Eye Rebound For Lucid 

On Stocktwits, retail sentiment for Lucid was 'bullish' late Wednesday amid 'high' message volume.

LCID sentiment and message volume as of November 5 | Source: Stocktwits

One user described the EV maker as“a sweet American-made car,” saying sell signals seemed to be fading and that the stock could climb in the weeks ahead.

Another user pointed to Lucid's $2 billion financing from the Public Investment Fund as a key positive, noting that confidence in the stock was improving and that the fresh capital came as a relief amid earlier concerns about potential dilution.

Lucid's stock has declined 43% so far in 2025.

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