Key Highlights

  • Revenue rose 4% year over year to USD 350 million.
  • Deliveries were 3,806 vehicles; production was 2,954 vehicles.
  • Adjusted EBITDA loss narrowed to USD 726 million.
  • Liquidity increased by USD 1.75 billion.

Lucid Group, Inc. (NASDAQ:LCID) reported third quarter 2026 Revenue of USD 350 million, up 4% year over year despite slightly lower deliveries and a USD 10 million headwind from lower regulatory credits. Reported EPS was negative USD 2.30 and revenue was USD 350.32 million, compared with estimates of EPS of negative USD 2.27 and revenue of USD 395.67 million.

Chief Executive Officer Silvio Napoli opened the call by presenting five facts as first evidence of progress, three months after laying out a framework built on three priorities and four Must-Win projects.

Deliveries and Production

The company produced 2,954 vehicles in the quarter, well below deliveries of 3,806 vehicles, which management attributed largely to eliminating a second shift at AMP-1 in June. Management said the battery electric vehicle market in the quarter was weaker than anticipated in August, with market volumes down 13% sequentially. Lucid deliveries were down 4% sequentially and down 7% year over year, compared with a 41% decline in the U.S. market.

Margins and Losses

Gross profit improved by USD 169 million compared with the second quarter, which management tied to operating resets, cost reductions and a reduction of just over USD 200 million in Impairment charges. Gross Margin moved from negative 105% in the second quarter to negative 74% in the third quarter. The adjusted EBITDA loss narrowed to USD 726 million, an improvement of almost 20% compared with the second quarter, and management cited a 17% sequential improvement in adjusted diluted net loss per share.

Operating expenses included approximately USD 20 million of advisory costs associated with the transformation that were not classified as exceptional restructuring charges.

Cash, Liquidity and Inventory

Free cash outflow was reduced by 30% compared with the prior quarter. The company stated it is working toward its USD 1.4 billion Cash Flow improvement target for 2026. Its anchor shareholder, PIF, increased the Credit facility, resulting in USD 1.75 billion of increased liquidity.

Net inventory was reduced by USD 156 million compared with the second quarter, driven primarily by converting work in progress and selling vehicles from existing inventory. Work in progress fell by nearly one quarter and finished goods by almost 15%.

Headcount across the company was reduced by 28% since the end of the first quarter, from 10,600 to 7,700 by the end of the third quarter. Warranty claims reduced by 70% and warranty costs were 16% lower year over year. Web leads were up 79% since January, session to order conversion doubled and cost per order was down 82%. Service wait times were cut by around 20%, supported by a 40% increase in service technicians.

On programs, management said the AMP-2 factory in Saudi Arabia has received more than 10,000 applications and that it continues to target inauguration in the earlier part of 2027 and Midsize production in the second half of 2027. Pilot production of Midsize in Coolidge is entering its final build phase. Driverless testing of the autonomous vehicle program is targeted for this quarter, ahead of a commercial launch in the Bay Area in the first quarter of 2027.

Transformation Priorities Named on the Call

Lucid's chief executive framed the quarter around three priorities and four Must Win projects, with 3,806 deliveries, 2,954 vehicles produced and liquidity up USD 1.75 billion. Management also cited the gross margin change from negative 105% to negative 74% and a headcount reduction from 10,600 to 7,700.