Lucid Motors has delayed the launch of its lower-priced mid-size electric vehicle until the second half of 2027 as new chief executive Silvio Napoli begins an operational reset. The company plans to reduce cash requirements by $1.4 billion while focusing on the vehicle, its Saudi Arabian factory and a robotaxi partnership with Uber and Nuro.
The mid-size model, known as Cosmos, was previously expected to begin deliveries by the end of 2026 with a starting price below $50,000. Napoli said Lucid would not release the vehicle until its production processes and quality standards were ready.
Cost Plan Targets Inventory and Spending
Lucid’s $1.4 billion cash-reduction plan includes between $600 million and $800 million in inventory savings. The company also expects to reduce capital expenditure by about $500 million and operating expenses by approximately $200 million.
The operating expense reductions include an estimated $158 million in annual savings from workforce cuts and production changes. Lucid laid off around 1,500 employees, representing 18% of its workforce, in June after cutting another 12% four months earlier.
The company also removed the second production shift at its Casa Grande factory in Arizona. Napoli said Lucid had allowed excess inventory, high spending and operational complexity to weaken its performance.
Lucid said the cost plan and recently secured financing should provide sufficient liquidity well into 2027. The company ended the second quarter with approximately $3 billion in total liquidity, according to its official earnings announcement.
Revenue Rises as Losses Continue
Lucid reported second-quarter revenue of $405 million, up from $259.4 million during the same period last year. Its net loss widened to $1.26 billion, or $3.30 per share, from $855.3 million, or $2.80 per share.
Napoli said the company had previously missed commitments, responded too slowly to quality problems and released products before they were ready. He has reorganised Lucid’s leadership team and reduced the number of executives reporting directly to him.
Recent appointments include a new chief financial officer, chief technology officer, chief customer officer, chief digital officer and chief transformation officer. Lucid has not issued a revised full-year production forecast after suspending its earlier guidance.
Robotaxi Programme Becomes a Separate Business
Lucid is creating a business unit called Lucid Technologies to manage AI, advanced driver-assistance systems and digital products. Chief digital officer Kai Stepper will lead the division.
The unit will oversee Lucid’s robotaxi programme with Uber and Nuro. Nuro’s autonomous driving system will be integrated into Lucid Gravity SUVs, while Uber will operate the vehicles through its ride-hailing platform.
The partners are testing 100 vehicles in Houston and the San Francisco Bay Area. Lucid began delivering production-validation vehicles in July, with regular robotaxi production scheduled for the fourth quarter and a commercial launch expected in late 2026.
Saudi Factory Remains a Priority
Lucid is also continuing work on its AMP-2 manufacturing facility in Saudi Arabia. The factory is expected to support production of the mid-size platform, although Napoli said supply-chain preparations would take longer than completing the facility itself.
Napoli also rejected reports that consulting firm AlixPartners had been hired to consider bankruptcy. He said its work was limited to supporting Lucid’s cost-reduction programme and streamlining operations, with the assignment expected to finish by the end of August.
Featured image credits: Airstream Services
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