Lucid misses Q2 estimates, unveils $1.4 billion cash flow reset

Lucid Group's second-quarter results showed higher revenue but deeper losses as new CEO Silvio Napoli laid out an operational reset aimed at cutting $1.4 billion in cash use while refocusing the EV maker on execution, quality and a handful of projects he says are critical to profitability. The company reported $405 million in revenue, up from $259.4 million a year earlier, and a net loss of $1.26 billion, or $3.30 a share, compared with a loss of $855.3 million, or $2.80 a share, a year earlier. Lucid said the plan includes $500 million in lower capital expenditures, $600 million to $800 million in inventory-related savings and a further $200 million reduction in operating expenses. Napoli said the measures should give Lucid enough liquidity runway well into 2027, with the company ending the quarter with $3 billion in total liquidity. He also delayed the launch of Lucid's midsize vehicle, known as Cosmos, until next year from a prior target to begin shipping by the end of 2026, saying the company would not bring the product to market before its processes and quality standards are ready. The reset follows leadership changes, the June decision to cut about 18% of the workforce, or around 1,500 employees, just months after a separate 12% reduction, and the elimination of a second production shift at the Casa Grande, Arizona, factory. Napoli said those steps are expected to generate $158 million in annualized savings. Lucid also said it is pushing ahead with its AMP-2 factory in Saudi Arabia and its robotaxi program with Uber and Nuro, where production validation vehicles are already being delivered and regular vehicle production is scheduled to begin in the fourth quarter ahead of a late-2026 launch. Napoli also rejected speculation that consultant AlixPartners had been hired to explore a bankruptcy filing, saying the firm's work was limited to cost savings and streamlining operations.