"Lucid" Slows Production Pace Amid Challenges Hitting the Electric Vehicle Sector

SadaNews - The company "Lucid" intends to increase the production of electric vehicles, but at a slower pace in 2026, following a year marked by production difficulties and a decline in demand for battery-operated vehicles in the United States.

The electric vehicle manufacturer stated that it will produce between 25,000 and 27,000 vehicles this year, while announcing a fourth-quarter loss that was worse than expected. Analysts had anticipated that the company would manufacture just over 33,000 vehicles in 2026.

This cautious forecast comes after a tough year in which the company encountered supply chain challenges, including shortages of magnets, aluminum, and chips.

However, "Lucid" managed to nearly double production and increase the delivery rate of its new SUV, "Gravity." The company's shares fell by 5.2% at 4:06 PM in after-hours trading in New York.

Production Estimates Reduction for 2025

"Lucid" also reduced its production estimate for 2025 by more than 500 vehicles to reach 17,840 electric vehicles for the entire year. This means that the automaker slightly failed to meet its revised annual production target of between 18,000 and 20,000 vehicles.

The company stated that the vehicles had not "completed some internal procedures" within the finalization process, but they will instead be counted in 2026. It added that this issue does not affect its previously announced financial results.

"Lucid" and other electric vehicle manufacturers have faced a broader slowdown in demand in the United States, which worsened late last year after the expiration of a $7,500 tax credit for electric vehicle buyers.

The company said it plans to continue "managing and adjusting cautiously" its production to reflect sales and delivery needs in 2026.

Lucid's adjusted loss for the fourth quarter reached $3.08 per share, worse than the average loss of $2.68 estimated by analysts.