Lucid Group, Inc. Q2 FY2025 earnings call

• Delivered 3,309 vehicles in Q2 2025, up 38% YOY, and produced 3,863 vehicles, up 83% YOY, with sixth consecutive quarter of record deliveries.
• Announced partnership with Uber and Nuro on a next-generation premium robotaxi, leveraging Lucid Gravity's software-defined vehicle architecture, Nuro's Level 4 autonomy, and Uber's network.
• Uber plans to invest $300 million in Lucid, with plans to deploy at least 20,000 Lucid Gravity vehicles as robotaxis over 6 years.
• Worked to overcome supply chain bottlenecks, including integrating substitute magnets and improving manufacturing efficiency, aiming to ramp up Lucid Gravity production in the second half of 2025.
• Launched a new brand campaign featuring Timothée Chalamet as global brand ambassador to enhance brand awareness and affinity.
• Deployed software updates to DreamDrive Pro ADAS, including hands-free driving, and the 2026 Lucid Air features a new battery pack with extended range.

In the second quarter of 2025, Lucid Group generated $259 million in revenue, a 29% year-over-year increase. Deliveries reached 3,309 vehicles, up 38% year-over-year, marking the sixth consecutive quarter of record deliveries. Production was 3,863 vehicles, up 83% year-over-year. Gross margin was negatively impacted, with a $54 million impact from tariffs alone, resulting in a negative 105% gross margin for the quarter. Revenue contribution from vehicle sales is the primary segment, with deliveries and production volumes being key metrics.

• Production guidance for 2025 is a range of 18,000 to 20,000 vehicles.
• CapEx guidance revised to a range of $1.1 billion to $1.2 billion, focusing on critical programs with high near-term returns and long-term strategic value.
• Actively taking actions to improve gross margin, including material cost optimization, production efficiency improvements, and tighter inventory management to move margins towards positive trajectory.

• Supply chain challenges, including capacity issues with certain suppliers and geopolitical issues with magnets from China.
• Tariff impacts on gross margin, with a $54 million impact in Q2 2025, which negatively affected gross margin despite sequential ASP improvements.
• Volatile macro environment and market conditions affecting EV sector performance.

Q: How many current gravity orders are there?

A: We don't disclose the specific number of orders, but customers are experiencing Lucid Gravity in studios with a high conversion rate once they see the vehicle, and we are supply constrained, not demand constrained.

Q: Is the midsize platform still on target for production in late 2026?

A: The midsize platform is still scheduled for start of production in late 2026, with deliveries expected to ramp up throughout 2027, and acquired facilities not impacting the timeline.

Q: How will the partnership with Uber aid in company growth? And how big of an impact do you expect it to have?

A: The partnership with Uber and Nuro is entry into a large market, validates Lucid's scalable platform, signals right to win in new markets, and is the start of extending innovation into the multitrillion dollar robotaxi market.

Q: Should we be expecting any changes to the midsized initial ASPs as they ramp up?

A: No plan or expectation that midsize ASPs will be impacted, with EVs seen as the future and normalization expected in the next years.

Q: Update on how the new Atlas Powertrain is coming and confidence in its development?

A: On track, targeting same or better efficiency at lower cost, with the Atlas Powertrain to be deployed in the midsized platform as the first vehicle.