TLDR
- Lucid stock dropped 22.7% over the past month, underperforming rivals Rivian and Tesla
- Second quarter deliveries rose 38% year-over-year to 3,309 vehicles, marking sixth consecutive record quarter
- New Gravity SUV shows concerning sales data with only 9 U.S. registrations through June despite months of production
- Company cut 2025 production forecast to 18,000-20,000 vehicles due to supply chain issues and tariffs
- Uber partnership announced with $300 million investment and plans for 20,000 robotaxi vehicles over six years
Lucid Group has faced a tough month as shares plummeted 22.7% while the company grapples with production challenges for its highly anticipated Gravity SUV. The electric vehicle maker’s stock performance lagged behind industry peers, with Tesla gaining 0.6% and Rivian losing just 10.7% during the same period.
The company delivered 3,309 vehicles in the second quarter, representing a 38% increase from the previous year. This marked Lucid’s sixth consecutive quarter of record deliveries, outpacing competitors who saw declining numbers.
Rivian’s deliveries dropped to 10,661 vehicles from 13,790 units in the same quarter last year. Tesla recorded a 13.4% decline in deliveries during the period.
Production Challenges Mount
The Gravity SUV, which entered production months ago, shows troubling early sales data. Registration information from S&P Global Mobility revealed only nine U.S. registrations through June 30.
Today, I took the new Lucid Gravity SUV out for a quick drive. Here are my initial thoughts of the car and the drive:
Materials & Seats:
I have to say, this is a nice vehicle. The interior feels very premium, and the materials feel expensive. The perforated vegan leather seats… pic.twitter.com/PUYpFq5LHD— Sawyer Merritt (@SawyerMerritt) August 17, 2025
In contrast, Lucid’s Air sedan accumulated 4,780 registrations during the same timeframe. The Air’s registrations jumped 52% year-over-year, showing continued demand for the luxury sedan.
Company officials acknowledge the Gravity production ramp has fallen short of expectations. CEO Marc Winterhoff told Yahoo Finance the company isn’t where it wants to be with Gravity production timing.
Supply chain disruptions from new tariffs and trade policies have created headaches for the automaker. A shortage of magnets from China caused much of the production delay damage.
These challenges forced Lucid to reduce its 2025 production forecast from 20,000 vehicles to a range of 18,000-20,000 units. The company expects tariff-related headwinds to continue hurting profit margins throughout 2025.
Financial Performance Shows Mixed Results
Lucid reported a quarterly loss of 28 cents per share in Q2, narrower than the 29-cent loss from the same period last year. Revenue climbed to $259.4 million from $201 million in the prior year quarter.
The company’s balance sheet shows strain with long-term debt rising to $2.04 billion from $2 billion at year-end 2024. The long-term debt to capital ratio sits at 0.63, above the industry average of 0.4.
From a valuation perspective, Lucid trades at a forward price-to-sales ratio of 2.89, higher than the industry’s 2.68. The Zacks Consensus Estimate projects 67.8% sales growth and 25.6% earnings improvement for 2025.
Strategic Partnerships Emerge
Lucid announced a major collaboration with Uber Technologies and Nuro to develop premium robotaxis for ride-hailing services. The partnership combines Lucid’s vehicle architecture with Nuro’s autonomous driving technology and Uber’s global network.
Under the agreement, Uber will invest $300 million in Lucid, subject to regulatory approval. The deal calls for deploying at least 20,000 Lucid Gravity vehicles with autonomous capabilities across multiple global markets over six years.
Production is scheduled to begin late next year, representing a potential revenue stream beyond traditional vehicle sales. The robotaxi project targets comfort, safety and scalability for ride-hailing applications.
Lucid has also secured domestic supply agreements to reduce geopolitical risks. The company signed a preliminary deal with Graphite One for natural and synthetic graphite starting in 2028.
Additional partnerships with Alaska Energy Metals, Electric Metals USA and RecycLiCo strengthen the supply chain. These agreements cover nickel, manganese and battery recycling capabilities.
The company plans to launch its midsize platform in late 2026, designed for more affordable vehicles compared to current luxury models. This platform should expand Lucid’s addressable market and drive delivery growth through 2027.
Despite solving most supplier issues, Lucid management expects the Gravity to generate the majority of deliveries in the second half of 2025. The SUV’s success will be critical given its potentially six times larger addressable market compared to the Air sedan.
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