Lucid Group, Inc. (NASDAQ:LCID) shares are trading lower after the company reported weak second-quarter results on Tuesday.

During the call, management said that the company expects 2026 production and deliveries to fall below current consensus estimates.

The CEO added that Lucid will continue offering selective incentive programs but will avoid pursuing volume growth at the expense of cash flow or vehicle economics.

Earnings Snapshot

Revenue of $405.35 million missed the analyst estimates of approximately $428 million, according to Benzinga Pro. The EV company reported an adjusted loss of $2.78 per share for the quarter, missing estimates for a loss of $ 2.49 per share.

Revenue rose 56% Y/Y driven by higher vehicle deliveries, a richer product mix, a 3.7% sequential increase in average selling price (ASP), and $25 million in regulatory credit sales.

Gross margin was negative 105%, unchanged from a year earlier but improving from negative 110% in Q1.

Results included a $300 million inventory impairment charge, which reduced gross margin by 74 percentage points.

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EV Production & Delivery

Vehicle production totaled 4,774 units, down 13% sequentially but up 24% year over year. The company intentionally lowered production to better align output with demand, reduce inventory, preserve liquidity, and improve capital efficiency.

Vehicle deliveries rose to 3,953 units, increasing 28% sequentially and 19% year over year, with Lucid Gravity accounting for the majority of deliveries.

Middle East deliveries also strengthened, supported by Saudi Arabia’s agreement to purchase more than 4,000 vehicles annually through 2032, beginning in 2026.

Lucid reaffirmed the Uber-Nuro robotaxi partnership as one of its four strategic priorities. The engineering fleet has expanded to nearly 100 test vehicles operating in the San Francisco Bay Area and Houston, with production-validation vehicles already delivered to Uber and Nuro.

Regular production is expected to begin in the fourth quarter of 2026, followed by a commercial launch later in the year.

Workforce Reduction & Efficiency Improvement

Lucid reduced its U.S. workforce by 20% and eliminated the second production shift at its Arizona manufacturing facility, actions expected to deliver approximately $158 million in annualized cost savings.

Management said it is reviewing all major investments, programs, and operating expenses to lower cash burn while preserving key strategic initiatives.

The company also plans to improve cash generation by converting existing inventory into customer deliveries rather than increasing production.

Management estimates the global robotaxi fleet could reach 2.5 million vehicles by 2035, representing a $600 billion vehicle total addressable market by 2040 and an approximately $1 trillion opportunity across the broader robotaxi ecosystem, including software and mobility services.

LCID Price Action: Lucid Group shares were down 13.56% at $6.72 at the time of publication on Wednesday, according to Benzinga Pro data.

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