Lucid Group (NASDAQ:LCID) used its fourth-quarter 2025 earnings call to outline progress in production scaling, the ramp of its Gravity SUV, and steps taken to improve unit economics amid what interim CEO Marc Winterhoff described as “extraordinary macro turbulences,” including higher tariffs, the roll-off of federal incentives, shifting EV demand, and supply chain disruptions. Management also detailed its robotaxi partnership with Uber and Nuro, provided 2026 production and capital spending guidance, and discussed cost actions intended to extend liquidity runway into the first half of 2027.
Production ramp, Gravity launch, and a production-count adjustment
Winterhoff said Lucid “about doubled” annual production in 2025 and highlighted a doubling of production from the third to the fourth quarter as evidence its manufacturing system can scale when supply constraints ease. CFO Taoufiq Boussaid reported fourth-quarter production of 7,874 vehicles, up 133% year-over-year, and full-year production of 70,840 vehicles, up 98% year-over-year.
Lucid also disclosed a revision to previously announced production figures. Winterhoff said the company determined that 538 vehicles that had been counted as factory-gated at its AMP-2 facility in Saudi Arabia in the last week of 2025 did not complete certain procedures required to meet Lucid’s standards for being counted as factory-gated. Those units—built in Arizona, shipped as kits to Saudi Arabia, and reassembled—are now expected to be considered factory-gated in 2026 instead. Management said the change had no impact on customer deliveries and that additional steps are being taken to ensure accuracy going forward.
Deliveries, pricing mix, and brand initiatives
Boussaid said fourth-quarter deliveries were 5,345 vehicles, up 72% year-over-year, marking Lucid’s eighth consecutive record quarter. Full-year deliveries were 15,841 vehicles, up 55% year-over-year. Both Winterhoff and Boussaid said Gravity represented the majority of deliveries in the fourth quarter, contributing to a higher average selling price.
Operationally, Boussaid said Lucid shifted to a more targeted build-to-stock approach to reduce delivery times for specific trims and configurations. He reported days on hand in December of 108, which he characterized as within the industry range, and said the figure is expected to trend down in the first quarter of 2026. He also emphasized pricing discipline, stating Lucid will not “chase volume at the expense of margin.”
On commercial and brand momentum, Winterhoff cited multiple awards for the Gravity and Air and said the company expanded studio and service capacity. He said Lucid increased service lift capacity by 40% in the U.S. and Canada and unlocked access to more than 27,500 Tesla Superchargers in North America. Winterhoff also highlighted the launch of Lucid Recharged, the company’s certified pre-owned program, in December.
Robotaxi partnership and autonomy roadmap
Lucid described autonomy as both a consumer feature and a way to enter the robotaxi market. Winterhoff said the company’s approach is designed to be executed “in the shortest time possible with limited capital expenditure” and argued it expands Lucid’s total addressable market, citing an estimate of $700 billion by 2035 when including robotaxis.
As previously announced, Lucid is working with Uber and Nuro on a robotaxi based on the Gravity and Nuro’s Level 4 autonomy stack, with a plan to deploy at least 20,000 vehicles on Uber’s platform. Winterhoff said Lucid closed a $300 million investment from Uber in the third quarter and began delivering engineering vehicles for evaluation, with on-road testing starting in the San Francisco Bay Area in the fourth quarter. He said the Bay Area is expected to be the first deployment area later in 2026.
In Q&A, management said the current Uber/Nuro arrangement is structured as a vehicle sale and does not include additional licensing or subscription revenue. Boussaid said robotaxi testing is underway and reiterated that commercial deployment is on track for 2026, adding that the agreement provides demand visibility that can help production planning and fixed-cost absorption over time.
Lucid also outlined an autonomy roadmap for customer vehicles: point-to-point autonomy in Gravity late 2026, L3 targeted for 2028, and L4 targeted for 2029, starting with mid-size vehicles. Management said additional details, including rollout cadence and pricing, will be discussed at its Investor Day on March 12.
Financial results: revenue growth, margin improvement, and liquidity
Lucid reported fourth-quarter revenue of $522.7 million, up 55% sequentially and 123% year-over-year, with full-year revenue of $1.35 billion, up 68% year-over-year. Boussaid said the company exceeded consensus expectations in both the quarter and full year, attributing growth to higher deliveries and higher ASPs.
Gross margin improved by approximately 18 points sequentially in the fourth quarter, driven by higher volume, improved fixed-cost absorption, a richer Gravity mix, yield gains, lower scrap, and logistics and material cost optimizations. Management said results were partially offset by incremental tariffs, “transitory ramp inefficiencies,” and inventory impairments. Boussaid also said Lucid incurred incremental tariffs of approximately $10,000 per unit in 2025 that it does not expect in 2026.
Lucid’s operating expenses in the fourth quarter were $643 million, up 6% sequentially, while revenue grew 55% sequentially. R&D expense was $361 million, and SG&A was $282 million. Operating loss was $1.065 billion, and adjusted EBITDA loss was $875 million. During Q&A, Boussaid corrected a statement from prepared remarks, saying adjusted EBITDA margin improved by 46 percentage points from the prior quarter.
Liquidity at quarter-end was approximately $4.6 billion, including $2.1 billion in cash and $2.5 billion in undrawn committed facilities. Capital expenditures were $325 million, up 64% from the prior quarter. Free cash flow was negative $1.2 billion, driven by ramp-related operating losses, working capital tied to production and mix shift, and CapEx.
2026 priorities, guidance, and cost actions
For 2026, Lucid guided to production of 25,000 to 27,000 vehicles and projected CapEx of $1.2 billion to $1.4 billion. Boussaid said, under its current plan and CapEx profile, the company’s runway extends into the first half of 2027. Management said most 2026 production and deliveries are expected to be Gravity, with “no meaningful” mid-size volumes given expected start of production late in the year, and only a small number of robotaxi vehicles in 2026.
Lucid also said it implemented a 12% reduction of its U.S. workforce (excluding hourly production employees in manufacturing, logistics, and quality). Management said the move is expected to deliver approximately $500 million in cumulative cost savings over three years, with severance outflows in 2026. In response to a question on cadence, Boussaid indicated the savings should be viewed as roughly $500 million divided over three years.
On manufacturing efficiency, Boussaid said manufacturing cost per vehicle produced (including manufacturing and logistics, labor, and overhead) declined approximately 27% during 2025, and the company is targeting roughly an additional 20% reduction in manufacturing cost per unit by the fourth quarter of 2026. He also said Lucid exited the quarter with an underlying run rate supporting up to 7,500 vehicles per quarter.
Management indicated additional strategy details—covering profitability, autonomy plans, and the mid-size platform—will be provided at Lucid’s Investor Day on March 12. In Q&A, Winterhoff said there were no updates on when the board plans to appoint a permanent CEO.
About Lucid Group (NASDAQ:LCID)
Lucid Group, Inc is a California-based electric vehicle manufacturer specializing in the design, engineering and production of luxury electric sedans. Its flagship model, the Lucid Air, features a proprietary battery and powertrain architecture that emphasizes energy efficiency, extended driving range and high performance. In addition to passenger vehicles, Lucid offers charging solutions and software-enabled services aimed at optimizing the ownership experience and accelerating adoption of zero-emission transportation.
The company was founded in 2007 under the name Atieva, initially focusing on battery technology and electric powertrains for other automakers before transitioning to its own branded vehicles.
