Lucid (LCID) reported second quarter results on Tuesday that beat revenue expectations, but losses ran wider than expected, as the struggling luxury EV maker unveiled an “operational reset” aimed at slashing cash burn and stabilizing a business that recently had to publicly deny it was heading for bankruptcy.
Lucid reported Q2 revenue of $405 million versus the $395.6 million analysts expected, per Bloomberg consensus, up 56% year over year. Lucid posted an adjusted loss per share of $2.78 versus $2.37, much wider than expected, with adjusted EBITDA coming in at a loss of $901.1 million, worse than the $681 million loss estimated.
“Lucid has leading technology, compelling products and deeply committed people, but potential is not performance,” CEO Silvio Napoli said in a statement. “We are going back to basics, with a clear focus on cash, customers, and culture.”
The company unveiled a three-pronged reset built around Cash and Cost, Customer and Quality, and Culture and Team to stabilize the business.
At its center is a plan to extract $1.4 billion in cash-flow improvements in 2026, split across $600 million to $800 million in inventory, $500 million in capital expenditures, and $200 million in operating expenses.
The operating expense savings include $158 million in annualized savings from a US workforce reduction announced in June. Lucid also named four “must-win” projects: the cost plan, its Uber- and Nuro-linked robotaxi program, the AMP-2 factory in Saudi Arabia, and its forthcoming midsize vehicle.
The reset comes after a turbulent month for the company. Last month, Lucid sent a cease-and-desist letter over a report that it was preparing to file for bankruptcy, which had sent the stock spiraling.
Lucid recently shored up its balance sheet with a fresh capital injection from Prince Alwaleed bin Talal through his Kingdom Holding Company, which disclosed a 5% stake of roughly 19.5 million shares late in July.
Lucid ended the quarter with $3 billion in total liquidity, though cash and cash equivalents of $732.6 million fell short of the $1.86 billion analysts expected. The company said its recently secured financing, combined with the operational measures now underway, should provide sufficient runway well into 2027.
Last month, Lucid said it delivered 3,953 vehicles, up 19% from a year earlier, and produced 4,774, up 24%, but throttled back to reduce inventory and preserve cash. The quarter likely includes a big ramp-up in its Gravity SUV sales as more of those vehicles hit showroom floors.
Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on X and on Instagram.
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