Narrowed Q1 Losses Announced by Lucid, Maintains Production Target for the Future
Lucid Gravity SUV Projected for Significant Growth in Second Half of 2025
In a positive turn of events for luxury electric vehicle manufacturer Lucid, the company is set to ramp up production and deliveries of its new Gravity SUV in the second half of 2025.
According to Cantor Fitzgerald analyst Andres Sheppard, Lucid is projected to deliver approximately 6,064 units of the Gravity SUV in 2025, as part of an estimated total of 16,650 vehicles. This includes 10,586 Lucid Air sedans.
However, the initial production forecast for 2025 has been revised down to between 18,000 and 20,000 vehicles due to production challenges specifically related to the Gravity SUV and supply chain constraints including critical rare earth magnet shortages.
The early sales of the Gravity have been sluggish, with only about 9 officially registered in the U.S. by June. Lucid claims internal data show hundreds of deliveries with delays between sales and registrations. The company started customer deliveries of the Gravity in early 2025 but faced a slower ramp-up due to supplier capacity and material shortages, compounded by tariff impacts.
Interim CEO Marc Winterhoff has expressed confidence that the issues are largely resolved and expects a significant production increase in the second half of 2025. The Gravity is expected to become the majority of deliveries in that period.
The Gravity SUV starts at around $96,500. Lucid has also secured a deal to sell 20,000 Gravity SUVs to Uber over six years, indicating longer-term growth potential beyond 2025.
The Gravity Touring and Grand Touring models are expected to be key drivers of volume growth in 2025.
Lucid reported an adjusted net loss of $0.20 per share, or $366 million, in Q1 2025. Revenue for Q1 2025 rose 35% year-over-year to $235 million. Over 600 additional units were in transit to Saudi Arabia for final assembly. This marks the fifth consecutive quarter of delivery growth for Lucid.
The success of the Gravity SUV could further increase Lucid's delivery growth and financial performance. The Gravity is a new product offering for Lucid and a potential competitor to other luxury electric SUVs in the market.
In summary, Lucid's Gravity SUV is set for a significant ramp-up in production and deliveries in the second half of 2025, after overcoming early production setbacks. This indicates a cautious but optimistic outlook for Lucid Gravity's 2025 sales and growth.
Investing in Lucid could potentially yield returns as the Gravity SUV, a new product offering, is projected for significant growth in the second half of 2025. This growth is expected to be fueled by technology advancements in the production process, which could improve the company's business performance in the electric vehicle market.
The success of the Gravity SUV, a potential competitor in the luxury electric SUV market, could further boost Lucid's financial position, particularly in areas of investing and business revenue. Given the optimistic outlook for Lucid Gravity's sales and growth, technology is poised to play a crucial role in the company's future.
