Luxury electric vehicle manufacturer Lucid Motors projects production increases of over 50% by 2026, though this represents a slowdown from previous growth rates. The company reported higher-than-expected losses in the fourth quarter due to ongoing supply chain disruptions and recently cut 12% of its U.S. workforce.
Electric vehicle manufacturer Lucid Motors announced Tuesday that production could increase by more than 50% in 2026, marking a deceleration from previous years’ expansion as the company grapples with persistent supply chain difficulties and manufacturing disruptions.
The luxury EV maker’s stock dropped 5% during after-hours trading following the release of fourth-quarter results that showed losses exceeding Wall Street expectations.
This year represents a pivotal moment for Lucid as the company increases manufacturing of its newly-introduced Gravity SUV while preparing to launch a mid-sized electric vehicle platform later in 2025, with pricing anticipated to begin below $50,000.
Industry analysts view the lower-priced model as essential for expanding Lucid’s customer base and determining the company’s future trajectory in the competitive luxury electric vehicle market.
CEO Marc Winterhoff acknowledged to Reuters that supply chain obstacles remain a significant challenge, explaining the company’s cautious approach to forecasting 25,000 to 27,000 vehicle deliveries this year, compared to 17,840 units produced in 2025.
“Supply chains, in particular long supply chains like we have, are always prone to surprises,” Winterhoff stated. “That is a learning from 2025. Let’s be prudent. Let’s make a plan that, whatever happens, so to speak, we can hit.”
The CEO noted that production projections do not account for potential opportunities created by competitor Tesla’s decision to discontinue its premium Model S sedans and Model X SUVs.
Beyond elevated tariffs on imported automotive components, Lucid has faced multiple manufacturing hurdles including semiconductor shortages, unreliable rare earth material supplies, and a September fire at an aluminum parts supplier.
These challenges, combined with commitments to Saudi Arabia, have prompted the company to begin production of its mid-sized vehicle at its Middle Eastern facility before bringing manufacturing to U.S. operations, according to Winterhoff.
Saudi Arabia previously agreed to purchase up to 100,000 vehicles from Lucid over a decade-long period.
While the company has addressed some production limitations, these issues contributed to fourth-quarter losses that surpassed analyst predictions, intensifying pressure to reduce operational expenses.
Last week, Lucid eliminated 12% of its domestic workforce as part of cost-cutting measures amid a difficult EV market environment following the September termination of the federal $7,500 tax credit for new electric vehicles.
Fourth-quarter revenue jumped 123% to $522.7 million, surpassing the analyst consensus estimate of $468 million compiled by LSEG.
However, the company recorded an adjusted loss of $3.08 per share, significantly higher than the projected loss of $2.62 per share.
To stimulate sales demand, Lucid introduced price reductions and promotional incentives on its luxury Air sedan models throughout the previous year, targeting consumers who reduced major purchases due to elevated interest rates.
The automaker is also concentrating on advancing its driver assistance technology and software capabilities, representing a potentially profitable sector where numerous manufacturers are competing to deliver innovative solutions.
Lucid established partnerships with Uber and autonomous driving company Nuro in the previous year, planning to launch a robotaxi service.