By Abhirup Roy and Jaspreet Singh
Feb 24 (Reuters) – Lucid forecast 2026 production to grow at a slower pace than last year, and reported a larger-than-expected loss for the fourth quarter on Tuesday, as various supply-chain setbacks and tariffs disrupted manufacturing plans and exacerbated costs.
Lucid’s shares were down 5% in after-market trading.
This is a crucial year for Lucid. The company is ramping up production of its recently launched Gravity sport utility vehicles and preparing to roll out a new, mid-sized EV platform late this year, expected to start at under $50,000.
That is seen as critical to attracting a broader swathe of customers and shaping the luxury EV maker’s road ahead.
But supply challenges continue to be a concern, Lucid CEO Marc Winterhoff told Reuters, acknowledging that the company was being conservative with its forecast of producing 25,000 to 27,000 vehicles this year, implying growth could top 50%. In 2025, production nearly doubled to 17,840 vehicles.
“Supply chains, in particular long supply chains like we have, are always prone to surprises,” he said. “That is a learning from 2025. Let’s be prudent. Let’s make a plan that, whatever happens, so to speak, we can hit.”
Winterhoff also said the outlook does not include potential benefits from larger rival Tesla’s decision to stop producing its flagship Model S sedans and Model X SUVs.
Apart from a hit from high tariffs imposed on auto part imports, Lucid, like some of its rivals, has been combating a chip shortage, uncertain supplies of rare earths and a fire in September at an aluminum supplier.
Driven in part by those challenges as well as a commitment to Saudi Arabia, the company has decided to start making the midsize vehicle in its plant in the Middle Eastern country and bring production to the United States later, Winterhoff said.
The kingdom had signed an agreement to buy up to 100,000 vehicles from the company over 10 years.
But while Lucid had overcome some of the production constraints, they led to a larger-than-expected loss for the fourth quarter, adding pressure on the electric vehicle maker to curtail costs.
Last week, Lucid laid off 12% of its U.S. workforce in an effort to cut costs amid a challenging market for EVs after the U.S. ended the federal tax credit of $7,500 for new EVs in September. The move will help the company save about $500 million over the next three years, it said.
For the quarter ended December, Lucid reported a 123% jump in revenue to $522.7 million, compared with the analysts’ average estimate of $468 million, according to data compiled by LSEG.
The company posted an adjusted loss of $3.08 per share, compared with the estimated loss of $2.62 per share.
Lucid ended the quarter with $4.6 billion in liquidity and projected capital expenditures of between $1.2 billion and $1.4 billion in 2026.
The company is also focusing on developing its advanced driver-assistance system and software, and launching a robotaxi fleet in partnership with Uber and self-driving technology startup Nuro.
Autonomy is expected to expand Lucid’s total addressable market to about $700 billion by 2035, Winterhoff said on a call with analysts.
(Reporting by Jaspreet Singh in Bengaluru and Abhirup Roy in San Francisco; Editing by Alan Barona)
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