Lucid Group 2025 Q2 Earnings Misses Targets as Net Loss Narrows 16.2%

Lucid Group (LCID) reported its fiscal 2025 Q2 earnings on August 5, 2025. The results fell short of expectations, with adjusted earnings per share (EPS) worse than analyst estimates. Additionally, the company revised its full-year production guidance downward, reflecting ongoing operational and supply chain challenges.

[Revenue]
Lucid Group’s total revenue grew by 29.3% year-over-year, reaching $259.43 million in Q2 2025, compared to $200.58 million in Q2 2024, demonstrating continued top-line expansion.

[Earnings/Net Income]
Lucid narrowed its loss per share to $0.24 in Q2 2025, representing a 29.4% improvement from $0.34 in the prior year. The company’s net loss decreased to $-539.43 million, a 16.2% reduction from $-643.39 million in Q2 2024. Despite this improvement, the company has posted a loss for the fifth consecutive year in this quarter, underscoring its ongoing financial strain.

[Price Action]
Following the earnings release, Lucid’s stock declined 2.02% in the latest trading day and fell further by 5.47% over the most recent full trading week. However, the stock has shown a 12.04% gain on a monthly basis, suggesting mixed investor sentiment.

[Post Earnings Price Action Review]
The strategy of purchasing Lucid shares in the wake of a revenue increase quarter-over-quarter and holding for 30 days proved unsuccessful, resulting in a significant loss. This approach yielded an 89.77% return over the past three years—underperforming the benchmark by the same margin. The negative Sharpe ratio of -0.69 highlights the strategy's risk profile, while the maximum drawdown of 0.00% implies a lack of room for error.

[CEO Commentary]
Marc Winterhoff, Interim CEO, noted 3,309 vehicle deliveries in Q2 2025, a 38% year-over-year increase, marking the sixth consecutive record quarter. He credited vertical integration for improving production flexibility amid supply chain challenges. Winterhoff emphasized three strategic pillars: operational discipline, brand expansion through partnerships, and technology leadership, citing innovations such as hands-free driving software and the midsized platform. He also highlighted the collaboration with Uber and Nuro for the Lucid Gravity robotaxi platform, expressing confidence in the company’s execution of its mission.

[Guidance]
Lucid Group provided an updated 2025 production guidance of 18,000 to 20,000 vehicles, reflecting a cautious outlook with a strong expected ramp in the second half of the year. The company expects to significantly boost Lucid Gravity production following supply chain resolutions. 2025 CapEx is now projected between $1.1 billion and $1.2 billion, prioritizing high-return programs. Taoufiq Boussaid, CFO, noted that full-year tariff impacts are expected to fall at the lower end of the 8% to 15% range, with mitigations already in place.

[Additional News]
On August 6, 2025, Lucid Group reported its Q2 results, which fell below expectations, prompting a downward revision of its full-year production guidance to 18,000 to 20,000 vehicles. The company’s adjusted EPS came in at a loss of 24 cents per share, exceeding the 21 cents per share expected by analysts. Revenue of $259 million also missed the $280 million forecast. Lucid’s net loss for the quarter widened to $855 million, or $28 per share, compared to $790 million, or $34 per share, in the prior year. Total costs and expenses rose by 7.5% year-over-year to $1.06 billion.

Temporary CEO Marc Winterhoff explained that the company adopted a more cautious stance on production guidance due to the volatile industry environment. He also highlighted that despite Gravity SUV entering production, supply chain constraints remain a significant barrier. Lucid ended the quarter with approximately $4.86 billion in total cash and equivalents, with the CFO emphasizing a focus on cost control, branding, and the Gravity rollout.

In recent weeks, Lucid has been active beyond its financial reporting, including a $300 million partnership with Uber to deploy over 20,000 robotaxis over six years and a high-profile celebrity endorsement from Timothée Chalamet. However, the company is burning through cash as it scales Gravity SUV production, a challenge compounded by the U.S. tax bill that will phase out EV tax credits by the end of September. These developments highlight the dual pressures of capital consumption and production scaling, with future success hinging on Gravity’s reception and supply chain improvements.