Lucid Halts 2026 Production Guidance as Inventory Hits $1.47 Billion; New CEO Launches Full Operational Review

Lucid has suspended its 2026 production guidance and launched a comprehensive review of nearly all operational areas under incoming CEO Silvio Napoli. The company acknowledged it is currently grappling with excessive vehicle inventory and insufficient orders. Just a month ago, Lucid had maintained its target to produce 25,000 to 27,000 vehicles in 2025, despite a nearly month-long delivery halt of its Gravity SUV due to supply chain issues. That production guidance has now been fully withdrawn. In the first quarter of 2025, Lucid produced 5,500 vehicles but delivered only 3,093, resulting in an accumulation of approximately 2,400 unsold units. By the end of March, the company’s inventory value had risen to about $1.47 billion, significantly higher than at the end of 2024. Revenue for the quarter totaled $282.5 million, up 20% year-over-year but well below market expectations of around $440 million. The company reported a net loss exceeding $1 billion for the quarter and consumed approximately $1.44 billion in free cash flow. During the earnings call, Napoli stated that the company would focus on improving cost efficiency and clearly delineating areas for investment versus non-investment. Saudi Arabia’s Public Investment Fund remains Lucid’s primary financial backer. The company said its current cash reserves are sufficient to support operations through the second half of 2027, but it must resolve the imbalance between production and demand before then.