Lucid to report Q2 earnings amid worries over cash burn, hopes for Gravity crossover

Lucid Motors reports second-quarter earnings Aug. 5 amid investor concerns over mounting financial losses and hopes for the success of future products, including the Gravity crossover scheduled for production this year.

The Newark, Calif., startup, which launched the Air sedan in 2021, said it delivered a record 2,394 cars in the quarter. But Lucid also boosted sales incentives on the Air to $16,537 per vehicle, according to Motor Intelligence.

The Air sedan, Lucid's only vehicle, starts at $71,400 including shipping.

In the first quarter, Lucid delivered 1,967 Airs and reported a net loss of $685 million. Lucid said it ended the quarter with more than $4.6 billion in cash and equivalents, giving it sufficient funds through mid-2025.

"This is a capital intensive business and we do need to raise more money," Lucid CEO Peter Rawlinson told Bloomberg in mid-July. Rawlinson said Saudi Arabia's Public Investment Fund, the automaker's majority shareholder, remains a long-term partner as Lucid develops new electric models.

Lucid's main factory is in Casa Grande, Ariz. It has a small facility in Saudi Arabia that does final assembly on pre-assembled Airs shipped from Arizona.

Investors who submitted questions for consideration during Lucid's Aug. 5 earnings call asked about the automaker's efforts to cut costs and boost its stock price. Lucid shares have fallen more than 50 percent over the 12 months ended July 31.

"Rivian recently announced a 35 percent reduction in costs and expected to have positive gross margin in Q4," asked one investor. "Can you share your path to positive gross margins?"

Investors, who submitted questions online, also asked about Lucid's product road map and sales expectations for the Gravity, which Lucid said will start at just under $80,000 before shipping.

Rawlinson said this year that the Gravity will reach a potential market six times larger than the Air because U.S. consumers prefer large crossovers over large sedans. Lucid said in May that it expects to make 9,000 Airs this year.

Lucid announced the first pre-production Gravity models rolled off its Arizona assembly line on July 31. Final production is on schedule for this year, Rawlinson told Bloomberg.

Looking beyond the Gravity, investors also asked about the timeline for Lucid's previously announced "midsize" platform, which the company has said will underpin luxury models under $50,000. Lucid has said the lower-priced vehicles are scheduled for production in late 2026.

Some investors asked about the possibility of a Lucid vehicle as low as $25,000. "Do you plan to make a cheaper vehicle to capture some share of the market before Chinese companies move in?" an investor asked.

Lucid hasn't announced any plans for a $25,000 vehicle.

Another popular theme among investors was the potential of partnerships with major automakers, including Nissan and Hyundai. Lucid has a deal to supply powertrain parts to Aston Martin for future EVs.

Lucid hasn't announced any plans with automakers beyond Aston Martin.