Lucid begins 'operational reset' as CEO says EV maker will delay midsize vehicle

Lucid Group missed Wall Street's second-quarter expectations as the electric vehicle manufacturer conducts an "operational reset" amid leadership changes and cost-cutting efforts.

Those plans include beginning non-prototype robotaxi production early next year and delaying its upcoming midsize vehicle that was expected at the end of this year until "most likely" the second half of 2027, Lucid CEO Silvio Napoli told CNBC on Tuesday.

"We're not going to make the mistake of the past where products, great cars, were in fact tainted by launching before things were ready," he said. "I think it's going to be '27. ... Most likely the second half of '27."

Here's how the company performed in the second quarter compared with average estimates compiled by LSEG:

The company did not release updated 2026 guidance. Napoli, who started leading the automaker in June, previously suspended production expectations amid a reevaluation of Lucid's business operations.

He told CNBC the company is "not ready" to give such guidance as Lucid resets investor expectations and has a new, incoming leadership team. Lucid also reduced production at its U.S. plant in Arizona from two shifts to one in June.

"I want it to be anchored in solid data, and most of all, I want a guidance that I'm confident Lucid will be able to deliver on and possibly even do better than that. This takes time," he said. "I wanted to make sure that we align the reality with consensus, which is today based on outdated business model."

Napoli did say the company's second-half production is expected to be lower than Wall Street's consensus and the first half of the year, while deliveries are expected to be higher than the first half of the year.

The company also released broad details of an "operational reset" or "transformation program" that includes identifying $1.4 billion in cash flow improvement opportunities this year.

They include approximately $600 million to $800 million in vehicle inventory, $500 million in capital expenditures, and $200 million in operating expenses, the company said.

In addition to the cost-cutting, Lucid said the plan will broadly focus on three key areas: "cash and cost," "customer and quality" and "culture and team."

More specifically, the company said its efforts will focus on its robotaxi program with Uber and Nuro; a factory that's under construction in Saudi Arabia; and its upcoming midsize vehicle. Lucid called the robotaxi initiative a "top priority."

Napoli said the company's robotaxi plans continue, including the production of prototype vehicles based on the company's Lucid Gravity SUV instead of its midsize vehicle. He said the company expects to deliver about 100 of the preproduction vehicles by the end of the year to its partners, with actual vehicle production in the beginning of next year.

"The robotaxi opportunity is huge, and it's an industry that is about to start an exponential growth," he told CNBC. "Not many companies are ready for it. We are a software-defined vehicle company, so we are well positioned."

Lucid, Rivian and Tesla stocks Lucid, which reported $3 billion in total liquidity to end the second quarter, said the actions and its current financials are "expected to provide sufficient liquidity runway well into 2027."

"Silvio and his leadership team are transforming the company, and the Board stands firmly behind their actions," Lucid Chairman Turqi Alnowaiser said in a release.

The missed results and comments come weeks after Lucid denied an online report that it was considering bankruptcy or taking the company private. The report caused shares of the company to plummet. The stock recovered some of those losses, but remains off nearly 30% in 2026.

Napoli adamantly denied such plans on Tuesday to CNBC, as he did when they were reported.

"I wholeheartedly reinforce the denial," he said. "We are here to stay. We are here. We have a plan. We have a board and a majority investor that will help us to go through what is admittedly a moment where we are doing many things at the same time."

Its largest shareholder is Saudi Arabia's sovereign wealth fund, the Public Investment Fund.

Lucid's second-quarter results included a net loss of more than $1 billion compared with a loss of $539.4 million during the second quarter of last year. The company reported an adjusted loss of $901.1 million, or $3.30 per share, compared with a loss of $632.1 million, or $2.80 per share, a year earlier.

The losses were on production of 4,774 vehicles, up 24% year over year, and deliveries of 3,953 vehicles, up 19%, during the second quarter. The company currently offers the Air sedan and Gravity SUV that start at roughly $70,000 and $80,000, respectively.

Napoli, who formerly led an escalator and elevator manufacturer, replaced interim CEO Marc Winterhoff on June 1. Winterhoff remained with the company until late June as Napoli put together a new leadership team.

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