Losses Mount for Lucid in Q2, Reducing Yearly Production Aim
Lucid Faces Production Challenges and Financial Losses, Announces Robotaxi Partnership
Lucid, the electric vehicle (EV) manufacturer, reported its second-quarter financial results for 2025 on Tuesday, revealing a mix of setbacks and advancements. The company's share price dropped nearly 8% during after-hours trading due to lower-than-expected revenue and earnings.
Production challenges primarily stem from a shortage of critical rare earth magnets, which has slowed the ramp-up of Lucid's new SUV, the Lucid Gravity. This has led to a downgraded 2025 production outlook, with the target now set at 18,000-20,000 vehicles, down from 20,000. This shortage is due to international trade disputes, particularly China restricting exports of these materials.
Despite these production issues, Lucid reported record revenue of $259.4 million for Q2 2025. However, the company still missed Wall Street expectations and posted a net loss of $790 million. Lucid maintains strong liquidity with $4.86 billion total, including $3.63 billion in cash and equivalents, which it says is sufficient to fund operations and scaling through the second half of 2026.
In terms of strategic partnerships, Lucid has recently announced a deal with Uber and Nuro to deploy 20,000 electric robotaxis over the next six years. Uber has committed $300 million as part of the collaboration, aligning with Lucid's strategy to expand its vehicle presence in mobility services.
Another significant development is Lucid's recent access to Tesla’s Supercharger network. This enhancement in charging convenience for Lucid owners may potentially improve market competitiveness compared to Tesla. However, charging speeds for Lucid Air on Tesla’s Supercharger network are severely limited to a maximum of 50kW.
Lucid ended Q2 with the delivery of 3,309 vehicles. The company's net loss for the quarter was $855 million, and the adjusted loss per share was $0.24.
In addition to these developments, Lucid has also announced Timotheé Chalamet as its first global brand ambassador. The Gravity SUV is expected to contribute more significantly to Lucid's output in the second half of the year.
While the road ahead for Lucid is fraught with challenges, the company continues to ramp up production of its second vehicle, the Gravity SUV, and is actively engaged in discussions to develop new revenue streams for its EV technology.
[1] Lucid Motors Lowers 2025 Production Target Due to Rare Earth Magnet Shortage
[2] Lucid Motors Q2 2022 Earnings Report: Record Revenue, Lowered Production Outlook, and $790 Million Net Loss
[3] Lucid Motors Announces Robotaxi Partnership with Uber and Nuro
[4] Lucid Motors Gains Access to Tesla’s Supercharger Network
[1] In light of the international trade disputes, Lucid Motors has announced a lower 2025 production target of 18,000-20,000 vehicles, initially aimed at 20,000, due to a rare earth magnet shortage impacting the production ramp-up of the Lucid Gravity.
[2] In its Q2 2025 earnings report, Lucid Motors reported a record revenue of $259.4 million, yet still recorded a net loss of $790 million, despite their strong liquidity of $4.86 billion.
[3] In a significant strategic move, Lucid Motors has announced a partnership with Uber and Nuro to deploy 20,000 electric robotaxis over the next six years, complementing the company's ongoing investment in mobility services.
