Luxury electric car manufacturer Lucid (NASDAQ: LCID) fell short of the markets revenue expectations in Q3 CY2025, but sales rose 68.3% year on year to $336.6 million. Its non-GAAP loss of $2.65 per share was 19.4% below analysts’ consensus estimates.

Is now the time to buy LCID? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Lucid’s third quarter saw substantial year-over-year revenue growth, but results missed Wall Street’s expectations and the stock remained largely unchanged. Management attributed the quarter’s trajectory to supply chain disruptions—especially shortages in magnets, aluminum, and chips—which impacted production mix and delivery timing. Interim CEO Marc Winterhoff highlighted the company’s ability to adapt, stating, “Our team’s agility and resourcefulness allowed us to problem solve our way through each challenge.” Organizational changes were also announced to streamline decision-making and enhance quality as Lucid scales globally.

Looking ahead, Lucid’s strategic partnerships and focus on autonomous technology are set to shape its path. Management emphasized ongoing initiatives with Uber, Nuro, and NVIDIA, aiming to open new recurring revenue streams in ride-hailing and advanced driver assistance. CFO Taoufiq Boussaid cautioned that near-term profitability depends on ramping the Gravity SUV and the future midsize platform, noting, “Technology and software will be key as they allow us to maximize return in a repeatable model and with low capital intensity.” The company expects demand to normalize next year as new models reach broader markets.

Key Insights from Management’s Remarks

Lucid’s third quarter performance was defined by persistent supply chain pressures, organizational restructuring, and the launch of major strategic partnerships, all of which are expected to influence future growth and margins.

• Supply chain disruptions: Management described three consecutive crises in critical components—magnets, aluminum, and chips—leading to production plan adjustments and delivery delays, especially for the Gravity SUV. These constraints required Lucid to reroute some manufacturing for export and impacted the quarter’s delivery numbers.

• Organizational changes: Key leadership shifts were made to improve operational execution and accountability. Emad Dlala was promoted to oversee all product development functions, Erwin Raphael expanded responsibilities to global sales and service, and Marnie Levergood joined as head of quality, aiming to align product development, cost efficiency, and customer experience.

• Autonomy and partnerships: Lucid advanced its strategy through a $300 million investment from Uber and a collaboration with NVIDIA. The Uber partnership includes an intent to deploy 20,000 robotaxis or more, but actual deployment is subject to regulatory and operational milestones and is not a near-term target. The NVIDIA partnership will help develop Level 4 (highly autonomous) driving capabilities, but management emphasized that the first consumer features—L2+ and L2++ advanced driver assistance—are expected as early as the end of next year (2026), with Level 4 autonomy a longer-term goal and no specific public date. These alliances are expected to accelerate technology delivery without heavy capital outlays.

• Product mix and pricing: The Gravity SUV began to comprise a larger share of deliveries, driving higher average selling prices. Production rates improved late in the quarter, and management expects Gravity to represent a majority of production in the next quarter.

• Brand and market expansion: Lucid increased brand awareness in the U.S. through high-profile marketing campaigns and expanded internationally, noting rising European orders and higher North American showroom traffic. Management sees these efforts as critical ahead of the midsize vehicle launch.

Drivers of Future Performance

Management expects production scaling, margin improvement, and autonomous technology partnerships to be the primary themes shaping Lucid’s outlook into next year.

• Midsize platform development: The launch of Lucid’s midsize vehicle, targeted for the end of 2026, is central to the company’s growth strategy. Management believes cost efficiencies from supplier negotiations and shared components with existing models will help improve margins and accelerate profitability, especially as order volumes increase.

• Autonomous technology rollout: Partnerships with Uber and NVIDIA are expected to provide a capital-efficient path for Lucid to introduce advanced driver assistance features and, eventually, Level 4 autonomy. Management stated these initiatives should generate new recurring revenue streams in software and data services, differentiating Lucid in the competitive EV market. However, management emphasized that only L2+/L2++ features for consumers are expected by late 2026; Level 4 autonomy remains an eventual goal, with no public timeline.

• Production and operational discipline: The company is focused on ramping Gravity production and managing costs through tighter working capital and lower capital intensity per vehicle. CFO Taoufiq Boussaid indicated that ongoing cost reductions, especially in bill of materials and labor, are necessary to move toward breakeven and improve unit economics.

Catalysts in Upcoming Quarters

In the coming quarters, our team will monitor (1) the pace and consistency of Gravity SUV production ramp-up, (2) progress toward autonomous feature deployment through the NVIDIA partnership, and (3) updates on the midsize platform’s timeline, cost structure, and supplier integration. Capital discipline and recurring revenue from software and services will be additional markers of successful execution.

Lucid currently trades at $17.27, in line with $17.22 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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