Lucid Halts Deliveries Over Seat Defect, Q1 Sales Drop 42% Sequentially

Lucid Group reported vehicle deliveries of 3,093 units for the first quarter of 2026, down 42% sequentially and slightly down approximately 0.5% year-over-year. Production during the same period totaled around 5,500 units, significantly exceeding deliveries. The company stated that the sales decline was not due to insufficient market demand but rather stemmed from quality issues with a second-row seat supplier. This problem led to a 29-day suspension of Gravity SUV deliveries and triggered a recall affecting more than 4,000 Gravity SUVs. The U.S. National Highway Traffic Safety Administration (NHTSA) was notified that the affected vehicles had improperly welded anchor points for the second-row seat belts. A Lucid spokesperson confirmed that a supplier had unilaterally altered its manufacturing process, forcing the company to halt Gravity model sales for most of February until it verified that quality standards were met. Lucid emphasized that January and March each saw strong monthly delivery volumes, nearly achieving year-over-year growth. The company added that the supply chain issue has now been resolved and reaffirmed its full-year 2026 production target of 25,000 to 27,000 vehicles. In 2025, Lucid produced 18,378 electric vehicles. Meanwhile, Lucid is preparing to launch its first mass-market vehicle based on a new, lower-cost platform. Priced around $50,000, the upcoming model will compete against vehicles such as the Rivian R2, Tesla Model Y, Model 3, and Chevrolet Equinox EV.