Lucid targets 18,000–20,000 vehicle production for 2025 while advancing robotaxi partnership with Uber

Earnings Call Insights: Lucid Group, Inc. (LCID) Q2 2025

Management View

Interim CEO Marc Winterhoff emphasized, “In the second quarter of 2025, we achieved meaningful progress on both operational and strategic fronts. We delivered 3,309 vehicles, up 38% year-over-year, and our sixth consecutive quarter of record deliveries. We produced 3,863 vehicles, up 83% year-over-year.” He highlighted the new partnership with Uber and Nuro for a premium robotaxi, stating Uber will invest $300 million in Lucid, with plans to deploy a minimum of 20,000 Lucid Gravity vehicles over six years. Winterhoff stated, “This partnership combines the industry-leading software-defined vehicle architecture of the Lucid Gravity, the scalability and proven capability of the Nuro driver Level 4 autonomy system and Uber’s vast global network… delivering a fully integrated robotaxi experience.”
The company announced Timothée Chalamet as its first global brand ambassador, with a new campaign to promote Lucid Gravity, aiming to boost brand awareness ahead of its midsized vehicle launch.
Winterhoff outlined three near-term priorities: operational discipline, building a distinctive scalable brand, and enhancing the technology edge. He noted, “We are laser focused on 3 important near-term priorities for Lucid. These are: first, operational discipline; second, building a distinctive, scalable brand and maintaining and enhancing a sustainable edge through our technology.”
CFO Taoufiq Boussaid stated, “We have delivered $259 million in revenue in Q2, marking a 29% increase year-over-year… Gross margin for the quarter was negative 105%, and reflecting a $54 million impact from tariffs alone… We ended the quarter with $3.6 billion in cash and investments and total liquidity of $4.86 billion.”

Outlook

The company updated its annual production guidance to a range of 18,000 to 20,000 vehicles for 2025, shifting from a fixed number previously. Management explained the change as a response to market volatility and external factors.
CapEx guidance for 2025 was refined to a range of $1.1 billion to $1.2 billion, with a focus on prioritizing critical programs and deprioritizing lower return investments.
Boussaid noted, “We will provide production guidance as a range to reflect the potential impact of continuously changing market environment and external factors.”

Financial Results

Lucid reported $259 million in revenue for Q2 2025, a 29% year-over-year increase.
The company produced 3,863 vehicles and delivered 3,309 units, marking its sixth consecutive quarter of record deliveries.
Gross margin was negative 105%, impacted by $54 million in tariffs, representing a 21 percentage point decrease in gross margin for the quarter.
R&D expenses reached $274 million, reflecting increased spend on the midsized platform and Atlas powertrain. SG&A was $257 million, increasing sequentially after a one-time reversal of stock-based compensation in Q1.
Adjusted EBITDA was negative $632 million, down 12%, mainly due to gross margin pressure.
Inventory rose to $730 million due to Lucid Gravity production build and preparations for ramp-up.

Q&A

Sean D. asked about current Gravity orders. Management did not disclose figures but stated, “We are seeing a high conversion rate once people see the vehicle for themselves. We are happy with what we’re seeing, and we remain supply constrained and not demand constrained.”
Paul C. inquired about the midsize platform timeline. Management confirmed, “The midsize is still scheduled for start of production in late 2026 and we are planning to unveil the vehicle next year.”
Adrian B. asked about the Uber partnership’s impact. Management responded, “The strategic partnership with Uber and Nuro is our entry into a large and very attractive market… This is the start of our path to extend our innovation and technology leadership into this multitrillion dollar market.”
Andres Juan Sheppard-Slinger, Cantor Fitzgerald: Asked about changes to midsize ASPs. Management replied there are “no plan and no expectation that the ASP of the midsize will be impacted.”
Stephen David Gengaro, Stifel: Sought updates on licensing agreements. Management stated that while discussions continue, the Uber and Nuro partnership represents a new direction for expanding technology applications.
Thomas Jacob Scholl, BNP Paribas: Asked about Gravity deliveries and July figures. Management denied reports of no July deliveries, reaffirming ramp-up plans for the second half, with Gravity becoming the majority of deliveries.
Tobias Beith, [Ross child]: Asked about magnet supply. Winterhoff noted, “We solved that problem in Q2. Second half of the year, we have secured enough magnets, so we have no problem with that anymore.”
Beith also queried timelines for the Atlas Powertrain and midsized model. Winterhoff indicated sourcing and validation are underway, with production planned for late 2026.
Beith questioned tariff impacts on inventory. Boussaid detailed the Q2 impact, stating, “We have stated that the tariffs — the impact from the tariffs in Q2 was amounting to roughly $55 million.”

Sentiment Analysis

Analysts pressed management on supply chain issues, production ramp, and financial impacts of tariffs, with a neutral to slightly negative tone evident in repeated questions about delivery volumes, margins, and inventory write-downs.
Management maintained a confident stance in prepared remarks, stressing operational discipline and technology leadership, but was more guarded and defensive in Q&A, especially regarding supply chain and margin challenges. Winterhoff’s statement, “that problem is behind us,” on supply chain bottlenecks, showed a shift from challenge acknowledgment to reassurance.
Compared to the previous quarter, the tone remains confident on long-term strategy but more cautious on near-term financials and supply chain risks.

Quarter-over-Quarter Comparison

Production guidance moved from a fixed 20,000 target in Q1 to a range of 18,000–20,000 in Q2, reflecting greater caution amid market volatility.
Q2 saw the announcement of a significant partnership with Uber and Nuro, contrasting with Q1’s focus on internal technology development and OEM discussions.
Q2 highlighted a $54 million tariff impact on margins versus Q1’s proactive mitigation strategies.
Analysts’ questions in both quarters focused on production ramp and technology licensing, though Q2 included more scrutiny on inventory and financial impacts from tariffs.
Management’s tone in Q2 was more defensive in Q&A, especially regarding operational bottlenecks and guidance adjustments, while maintaining confidence in technology and long-term strategy.

Risks and Concerns

Management cited ongoing supply chain volatility, specifically referencing magnet shortages and tariff impacts.
The company is implementing localized sourcing and vertical integration to mitigate supply chain risks.
Inventory write-downs and negative margins were attributed to tariff impacts, with management outlining expectations for lower full-year tariff headwinds due to mitigation strategies.
Analysts raised concerns about production ramp, inventory management, and timing of new product rollouts.

Final Takeaway

Lucid’s second quarter of 2025 was marked by record deliveries, a high-profile partnership with Uber and Nuro for robotaxi deployment, and progress on supply chain stabilization. Despite a challenging margin environment due to tariff pressures and elevated inventory, management reiterated its focus on operational discipline, brand expansion, and technology leadership, while adjusting guidance to reflect ongoing market uncertainties and emphasizing its readiness for an accelerated production ramp in the second half of the year.

Read the full Earnings Call Transcript