LCID

It has been about a month since the last earnings report for Lucid Group (LCID). Shares have lost about 29.7% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Lucid Group due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Lucid Group, Inc. before we dive into how investors and analysts have reacted as of late. Lucid reported a second-quarter 2026 loss of $3.30 per share, wider than the year-ago loss of $2.80 as well as the Zacks Consensus Estimate of a loss of $2.72.Revenues surged 56.2% year over year to $405 million and beat the consensus estimate of $323 million by 25.4%. Higher vehicle deliveries, improved product mix and increased regulatory credit sales supported the top line. Lucid produced 4,774 vehicles during the quarter, up 24% year over year. Production declined 13% sequentially as management deliberately reduced output to align manufacturing with near-term demand and limit further inventory growth.Deliveries rose to 3,953 vehicles, up 19% year over year and 28% sequentially. Lucid Gravity accounted for the majority of volumes. Revenues also benefited from a 3.7% sequential increase in average selling price and a $25 million increase in regulatory credit sales. Deliveries in the Middle East improved during the quarter. Gross margin was negative 105%, compared with negative 110% in the first quarter and negative 105% a year ago. Lower production reduced fixed-cost absorption and raised conversion costs per vehicle, offsetting the benefits of higher revenues and improved pricing.Results included roughly $300 million of inventory impairment charges, which reduced gross margin by 74 percentage points. The charge reflected a reassessment of inventory carrying values and expected demand. Lucid also reduced firm purchase commitments to lower future inventory obligations and cash requirements. Adjusted EBITDA loss widened to $901.1 million from $632.1 million in the year-ago quarter. Operating expenses included $321.3 million of research and development costs, $300.4 million of selling, general and administrative expenses and $33.7 million of workforce-reduction charges.Management identified $1.4 billion of cash flow improvements for 2026. The plan includes projected inventory savings of $600-$800 million, capital expenditure reductions of about $500 million and operating expense savings of roughly $200 million. Lucid’s U.S. workforce reduction and elimination of the second shift at its Arizona factory are expected to generate $158 million in annualized savings. Lucid’s robotaxi program with Uber and Nuro moved deeper into testing and validation. The engineering fleet includes nearly 100 vehicles operating across the San Francisco Bay Area and Houston. Production-validation Gravity vehicles have begun reaching partners, with regular production expected in the fourth quarter and service launch targeted for late 2026.The AMP-2 factory in Saudi Arabia has shifted from construction to industrialization. Manufacturing systems for stamping, body, paint and final assembly are being installed and tested. Lucid expects the facility to be ready for production in early 2027 and for midsize production in the second half of that year. Lucid ended the June quarter with $3 billion of total liquidity, including about $800 million of cash and investments and $2.2 billion of available borrowing capacity.Free cash flow was negative $1.48 billion, compared with negative $1.01 billion a year earlier. Net cash used in operating activities totaled $1.22 billion, while capital expenditures were $253.8 million. Inventory increased to $1.38 billion from $1.11 billion at the end of 2025. Lucid did not provide quantitative financial guidance. Management expects third- and fourth-quarter production to remain below second-quarter levels as AMP-1 operates with one shift through year-end.Deliveries are expected to exceed production during the second half as Lucid works down finished-vehicle inventory. Management anticipates sequential delivery growth consistent with normal seasonality, though at a more moderate pace than in the prior year. The company expects its current liquidity and operational measures to provide runway well into 2027. In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted 5.97% due to these changes. Currently, Lucid Group has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. Notably, Lucid Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Lucid Group is part of the Zacks Automotive - Domestic industry. Over the past month, Tesla (TSLA), a stock from the same industry, has gained 11%. The company reported its results for the quarter ended June 2026 more than a month ago. Tesla reported revenues of $28.24 billion in the last reported quarter, representing a year-over-year change of +25.5%. EPS of $0.33 for the same period compares with $0.40 a year ago. Tesla is expected to post earnings of $0.47 per share for the current quarter, representing a year-over-year change of -6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1%. Tesla has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lucid Group, Inc. (LCID) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Lucid Group (LCID) has drawn fresh attention from investors after reporting second quarter 2026 results that combined higher sales with a much larger net loss, putting its growth plans and cash usage in sharper focus. See our latest analysis for Lucid Group. Lucid Group's latest earnings update and operational reset come after a mixed share price pattern, with a 30 day share price return of 18.69% contrasting with a year to date share price return that is down 41.35%. Over longer horizons, total shareholder returns are also sharply lower, including a 1 year total shareholder return that is down 72.05%. This reflects how investors have been reassessing both growth potential and execution risks around the luxury EV story. If Lucid's recent volatility has you comparing opportunities across electric mobility and automation, it may be worth widening your search with a curated list of 39 robotics and automation stocks. Bulls see Lucid Group as a high growth EV platform reset under new leadership. Bears point to heavy losses and years of weak shareholder returns. Which case looks closer to fair value after the recent share price move? Lucid Group's most followed narrative sets a fair value of $8.40 a share, compared with a last close of $6.54. This frames today’s debate around upside versus execution risk. Read the complete narrative. Curious what kind of revenue ramp, margin shift and future earnings multiple need to line up to support that $8.40 fair value for Lucid Group? The narrative leans on rapid top line compounding, a turn in profitability, and a premium valuation usually reserved for more mature sectors. The full breakdown shows how these moving parts are stitched together into one long term pricing story. Result: Fair Value of $8.40 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Lucid Group story also carries clear pressure points, including ongoing heavy losses of US$4.6b and continued reliance on external funding that could further dilute shareholders. Find out about the key risks to this Lucid Group narrative. The analyst narrative presents Lucid Group as 22.1% undervalued at $8.40, yet the current P/S ratio of 1.7x tells a different story. That figure sits well above the US Auto industry average of 0.6x and a fair ratio estimate of 0x, which suggests meaningful valuation risk if sentiment cools. Higher pricing than peers can sometimes reflect faith in future execution rather than what the business delivers today, so it is worth asking how much optimism you are comfortable paying for at this stage. See what the numbers say about this price — find out in our valuation breakdown. With both risks and potential rewards in the mix for Lucid Group, now is a good time to review the details and decide where you stand. To see how the risk and reward signals stack up side by side, start with these 1 key reward and 4 important warning signs. If Lucid Group has you rethinking your portfolio, now is the moment to scan for other opportunities before the next wave of moves passes you by. Spot potential turnaround stories early by checking out 19 elite penny stocks with strong financials that already show stronger balance sheets and business momentum than many expect. Zero in on quality at a reasonable price by reviewing 49 high quality undervalued stocks that pair solid fundamentals with pricing that still looks restrained. Build a steadier core to your holdings by focusing on 85 resilient stocks with low risk scores that score well on stability and downside protection. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LCID. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Lucid’s second quarter saw a negative market response despite revenue surpassing analyst expectations, as management was candid about ongoing operational challenges. CEO Silvio Napoli, in his first quarter at the helm, acknowledged that Lucid’s history of missed commitments and poor execution has strained trust with customers and investors. Napoli emphasized that the company’s persistent cash burn, inventory buildup, and inconsistent quality have required urgent intervention, including a significant reduction in workforce and a scaled-back production shift. He stated, “Potential is not performance, and effort is not the same as results.” Is now the time to buy LCID? Find out in our full research report (it’s free). Revenue: $405.3 million vs analyst estimates of $389.3 million (56.2% year-on-year growth, 4.1% beat) Adjusted EPS: -$2.78 vs analyst expectations of -$2.32 (20% miss) Adjusted EBITDA: -$901.1 million (-222% margin, 42.6% year-on-year decline) Adjusted EBITDA Margin: -222% Sales Volumes rose 19.5% year on year (38.2% in the same quarter last year) Market Capitalization: $2.60 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Andres Sheppard (Cantor Fitzgerald) asked about milestones for the AMP-2 factory and Midsize launch. CEO Silvio Napoli detailed that internal and external factors—such as production line testing and supplier network readiness—are being closely monitored, with quality taking precedence over speed. Alex Perry (Bank of America) questioned progress in the robotaxi initiative and learnings from current validation. Napoli described the focus on accumulating real-world and virtual testing miles, highlighting that integration and certification milestones are critical before launch. Alex Perry (Bank of America) also sought clarity on inventory strategy and timeline for normalization. CFO Taoufiq Boussaid explained that inventory is expected to return to normalized levels by year-end, with deliveries benefiting from seasonality and planned production slowdowns. Andrew Percoco (Morgan Stanley) probed whether Lucid would consider consolidating manufacturing to optimize utilization. Napoli responded that factory specialization limits flexibility, but the company is reviewing all options as part of strategic planning. Itay Michaeli (TD Cowen) asked about marketing and brand positioning ahead of the Midsize launch. Napoli indicated that a brand audit is underway to ensure the brand aligns with product strengths and resonates with target customers. In the coming quarters, our analysts will watch (1) the pace of inventory normalization and its impact on working capital, (2) tangible progress on the Uber-Nuro Robotaxi project as it moves toward commercialization, and (3) milestones in the AMP-2 factory ramp and Midsize platform development. Updates on service quality improvements and the effectiveness of recent cost reductions will also be key indicators of execution. Lucid currently trades at $6.63, down from $7.78 just before the earnings. Is there an opportunity in the stock? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 5:30 p.m. ET Chief Communications Officer - Nick Twork Chief Executive Officer - Silvio Napoli Chief Financial Officer - Taoufiq Boussaid Operator: Good day, and welcome to Lucid Group's second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Nick Twork, Chief Communications Officer. Please go ahead. Nick Twork: Thank you and welcome. Joining me today are Silvio Napoli, our CEO, and Taoufiq Boussaid, our CFO. Before handing the call over to Silvio, let me remind you that some of the statements on this call include forward-looking statements under federal securities laws. These include, without limitation, statements regarding the future financial performance of the company, production and delivery volumes, vehicles and products, studios and service networks, financial and operating outlook, timeline and guidance, liquidity position, capital expenditures, macroeconomic, geopolitical, policy and industry trends, tariffs and trade policy, company initiatives and plans, leadership changes, and other future events. These statements are based on various assumptions, whether or not identified in this communication, and on the predictions and expectations of our management as of today. Actual events or results are difficult or impossible to predict and may differ due to a number of risks and uncertainties. We refer you to the cautionary language and the risk factors in our annual report on Form 10-K for the year ended December 31, 2025, subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and other SEC filings, and the forward-looking statements on page two of our quarterly earnings presentation available on the investor relations section of our website at ir.lucidmotors.com. We undertake no obligation to revise or update publicly any forward-looking statement for any reason, except as required by law. In addition, management will make references to non-GAAP financial measures during this call. A discussion of why we use non-GAAP financial measures and information regarding reconciliation of our GAAP versus non-GAAP results is available in our earnings press release issued earlier this afternoon, as well as in the earnings presentation. Please note that today's agenda is longer than usual. We plan to reserve 20 minutes for questions at the end of the call, and we'll take them in the order received. With that, I'd like to turn the call over to Lucid CEO, Silvio Napoli. Silvio, please go ahead. Silvio Napoli: Thank you, Nick. Good afternoon, everyone, and thank you for joining us from my first quarterly results as Lucid's CEO. As promised today, I'll share my initial assessment, our midterm priorities, and the actions already underway. In my first two months as CEO with the company, I spent much of my time with the people who do the work in our factories, studios, service centers, engineering labs, and technology centers. My approach is simple. Listen first, understand what is happening on the ground, and act with urgency. Over more than 30 years, I've led complex technology-driven manufacturing and service businesses through many of the same fundamental challenges Lucid faces today. That experience is directly relevant to the work ahead and is one of the reasons I came to Lucid. What I've seen so far gives me confidence in Lucid's inherent value and potential. We have leading technology, compelling award-winning products, and deeply committed people. Potential is not performance, and effort is not the same as results. Now, before discussing our priorities, I want to be very direct about our situation. I came to Lucid with a mandate from the Board to do what is necessary to fix the business. My acceptance of this exciting challenge is based on the clear understanding that financial support is needed to provide the runway to make the company profitable and successful. Together with the Board, we are confident in our resolve, and that confidence is supported by the financial and operational measures that I will discuss today, which we expect will provide sufficient liquidity runway well into 2027. Let me be direct. The way we operate has to change. While there is no question that Lucid brought leading innovations and outstanding products to the market, we have disappointed on several fronts and for far too long. We have not executed consistently, we missed commitments, launched products before they were ready, under-invested in service, responded too slowly to quality issues, and allowed complexity to slow decisions down. Accountability has too often been diffused rather than clearly owned, and we have not operated as one team. The consequence is clear. We have strained trust. Trust with our customers, trust with our employees, trust with our suppliers, and ultimately, trust with you, our investors. I'm here because I'm convinced we can rebuild this trust. We will fix the business because the underlying causes are operational and largely within our control. To get there, we must go back to basics. All our work must be focused on three fundamentals and four must-win deliverables. We define our three fundamentals as our three Cs: cash and cost, customer and quality, and culture and team. The four must-win projects are, first, our plan to deliver $1.4 billion of cash flow improvement by year-end. Second, the Uber Nuro Robotaxi project. Third, the completion of our AMP-2 factory in Saudi Arabia, and fourth, our Midsize platform. Let me first provide some color on the three Cs, starting with cash and cost. During my first month as CEO, we reduced our U.S. workforce by one-fifth and eliminated the second shift at our Arizona factory. These two measures combined generated $115 million in projected annualized savings. The decision to separate ourselves from hardworking team members was not taken lightly. I would like to take this opportunity to thank them again for their contribution to make Lucid what it is today. That decision was necessary, and it was only the first step in our cost reduction efforts. We need to be direct about the scale of the challenge. Lucid continues to consume a significant amount of cash each quarter as we invest simultaneously in a manufacturing footprint, vehicle production, and future programs. That level of cash burn is not sustainable, and bringing it down is an immediate priority. We are therefore reviewing every major cost, each individual investment, and every single program across the company. Our objective is to reduce cash burn with urgency while protecting the initiatives that are most critical to Lucid's long-term value. We've already identified approximately $1.4 billion of cash flow improvement in 2026 across operating costs, capital spending, and working capital. We deliberately reduced production by eliminating a second shift because building vehicles faster than we could deliver them was consuming cash and increasing inventory. Today, our priority is to convert inventory into deliveries and cash, aligning production with demand to improve working capital. We will continue to selectively use incentive programs, but we will not buy volume at the expense of cash or vehicle economics. Here, I also want to address the speculation surrounding our work with AlixPartners. Their engagement has been focused solely on supporting our cost savings plan and streamlining our operations. We will be wrapping up their assignment once that work is complete, which we expect at the end of this month. Moving on to the second C, customer and quality. Frankly, this is not optional, but a must for every business, including ours. Let's be honest, we have exceptional vehicles, but the ownership experience has too often come short of the promise of the product. That's why we created the Chief Customer Officer position and hired Billy Hayes, a highly respected automotive industry leader with a unique understanding of the customer experience in our sector. With him, we're assigning clear ownership to each major customer pain point and creating a closed loop from customer feedback to corrective action. We are making significant investments in service. By the end of the year, we plan to increase the number of technicians and dedicated staff supporting our customers by 35% and mobile service capacity by more than 20%. Together with improvements in parts availability, service operations, and capacity, we expect these actions to reduce wait times by more than 30%. Our objective is to make the full experience of buying and owning a Lucid match the strength of the vehicle. We will continue to invest in innovation and bring outstanding products to the market, but only after passing rigorous quality gates. We created a Chief Technology Officer position and hired Raja Macha, a proven technology leader and accomplished scientist with extensive industrial experience, including the automotive sector, to take our innovation to the next level and enable the quality our customers expect. Even prior to Raja's joining, we knew that software was a common root cause for customer dissatisfaction. To address this pain point, we immediately deployed measures to strengthen our software rollout process, and we're already seeing progress. During the quarter, software quality improved across Gravity and Air, with work focused on infotainment stability, access control, and OTA reliability. We strengthened our validation and release processes, reduced software-related customer issues, and established more rigorous quality disciplines. At the same time, we continue to bring innovations to the market. Our latest software release, Gravity UX 3.6, added hands-free drive assist in combination with other customer features and stability improvements. I'm excited to share that in a few days, at Monterey Car Week, we will unveil a new, sportier version of the Lucid Gravity. Coming to the third of our Cs, culture and talent. Without the right team and the right culture, no plan can succeed. That's why culture and team must be one of our top priorities. Last July 2nd, in my second month on the job, we introduced a new simplified organizational structure which halved the number of direct CEO reports. To enforce accountability and foster transparency, we introduced a true C-suite to lead the company. To accelerate decision-making, we're greatly reducing the number of committees except for legally mandatory ones. In just a few weeks, we began a major transformation of Lucid as a company and as a team. To keep the momentum going, we created a Chief Transformation Officer role and appointed Hugo Martinho, a proven leader with deep expertise in driving organizational change across global businesses. We will establish the Lucid business process function led by Hugo to enforce process discipline across everything we do. Lucid needs leaders who are fully present and working side by side with their teams. That is why we asked a new leadership team to work in person from one of our main locations close to our customers and teams in manufacturing, supply chain, and engineering. My expectation is straightforward. Tough medicine first, clear ownership, fast action, and unity of effort. The people closest to the work will diagnose the problems and design solutions. Leadership sets priorities, removes obstacles, and holds individuals accountable, starting with me and our executive team. Alongside this fundamental reset, we identified four must-win deliverables that will shape Lucid's future. I've already addressed the first one, a spending reduction plan which delivers approximately $1.4 billion in cash flow improvement in 2026. The second one is a robotaxi project with Uber and Nuro, a top priority and indeed a must-win project for Lucid. Lucid's capabilities are recognized not only through independent awards for our products, but also through partners choosing our platform for their own strategic platforms. The work between Uber, Nuro, and Lucid is one example and demonstrates the potential of our technology beyond privately-owned vehicles. Brand recognition and committed sales aside, this project applies our technology in a new, fast-growing sector. Independent estimates project that 2.5 million robotaxis will be operating globally in 2035. That is less than 10 years from now. The total addressable market for robotaxi vehicles will grow to $600 billion by 2040. Given Lucid's differentiated technology, the robotaxi ecosystem also creates opportunities beyond vehicle sales, including recurring software services and mobility revenue. Over time, Lucid has the potential to participate across a broader share of the robotaxi value chain, which some industry estimates value at approximately $1 trillion. These exponential growth prospects are not the only feature that makes the robotaxi market so attractive. Equally compelling, if not more so, is the profit potential. We project the margins vastly exceeding those of the traditional retail model. As a native software-defined vehicle company, Lucid is ideally positioned to capture a large share of this rapidly emerging market. Lucid's technology platform, combined with our vehicle space efficiency and lower operating cost, provides a clear advantage over legacy car makers. The success of the Uber Nuro project will demonstrate the value of our platform at scale. Our program is deep into the testing and validation phase with an active engineering fleet of nearly 100 vehicles across the San Francisco Bay Area and Houston. Last month, we began delivering to Uber and Nuro production validation vehicles assembled at a facility in Coolidge, Arizona. This will be followed by regular vehicle production in Q4, which in turn will be followed by a launch in late 2026. While we progress towards this milestone, the robotaxi industry is at a pivotal juncture, Lucid is resolved to fully capture this historic opportunity. That's why we're creating Lucid Technologies, a new business unit with its leader, Kay Stepper, reporting directly to me and driving our efforts in robotaxis and other high-potential technology opportunities. Lucid Technologies brings together AI, ADAS, and our broader digital functions under one single structure to improve resource and capital allocation. Kay previously led our ADAS and autonomy organization and now serves as President of Lucid Technologies and Chief Digital Officer. With more than 25 years of experience spanning autonomous driving, advanced vehicle technologies, product development, and strategic partnerships Kay is ideally positioned to help Lucid capitalize on this emerging opportunity. Moving on to our third must-win project, AMP-2. AMP-2, our new factory in Saudi Arabia, is steadily transitioning from construction to industrialization. Last April, in my second week with Lucid, I traveled to Jeddah to see the factory firsthand and get a sense of construction progress and factory readiness. I was impressed by the progress achieved despite the geopolitical situation. All buildings are functional, manufacturing systems installation and equipment testing is happening across stamping, body, paint, and final assembly in preparation for production trials. These pictures also attest to the heroic effort by the Lucid team and our supportive Saudi government partners who continue to work to meet the project milestones. I'm due to return to the Kingdom this month. I look forward to seeing the continued progress over there. It is important to clarify that there are two distinct components to our readiness plan. The first is the factory itself, which is within our control. Based on the work underway today, we expect AMP-2 to be ready for production in early 2027, ready to run Midsize production in the second half of the year. The second component is the surrounding supplier base and supporting infrastructure required to enable a sustained production ramp. We are closely working with the Saudi authorities, suppliers, and other partners to ensure that this ecosystem is ready to support a planned ramp. The Saudi authorities continue to be a strong partner, helping to advance the road, water, electrical, and telecom infrastructure. We're also evaluating supply localization timelines and identifying actions to mitigate potential delays. Importantly, this does not change our commitment to the Kingdom, to the local supply chain networks, to our broader industrial strategy. We look forward to updating you as the work proceeds. Speaking of progress, I had the opportunity to drive our latest Cosmos prototype at our Arizona test track last week, and I have to say, I came away extremely impressed. This new model delivers everything you would expect from a Lucid. The acceleration is remarkable, the handling is precise, and it remains unmistakably true to the Lucid DNA. Really, I cannot wait for you to experience it yourselves. Cosmos will be the first vehicle produced at our new AMP-2 factory and the first model from our Midsize platform. This Midsize platform remains an essential element of Lucid's strategic plan. That is why it must be one of our must-wins. While the EV market is experiencing near-term demand uncertainty, we remain confident in the long-term transition to electric vehicles. EV adoption continues to expand globally, and we believe the Midsize segment represents the largest opportunity for Lucid to bring our technology to a broader EV customer base. I am encouraged by the progress across the program. Atlas drive units and prototype vehicles are already in advanced stages of testing, with work underway across chassis, drive units, battery pack manufacturing, and on-road and test track validation. We are also carrying out crash testing, aerodynamic refinement, and durability testing with cold weather evaluation in New Zealand. The next major phases of the program include additional prototype and quality launch builds, completion of the regulatory and homologation activities, expanded manufacturing validation, and preparation for the start of production. To lead the process and coordinate actions across functions, we have promoted Christian Appel to VP of Program Management. Based at our AMP-1 factory in Arizona, Christian is responsible for the program while ensuring discipline and coordination across the company to deliver top quality. With a strengthened team and additional resources, he and his team are performing a comprehensive review of the program and will implement any changes needed to ensure a successful launch. Our objective is clear. Midsize will launch only when every process and quality requirement have been met. We will not repeat the mistakes of the past by bringing a product to market before it is ready. Once more, we remain confident in Midsize as a core enabler to scale, improve unit economics, and ultimately profitability. Finally, moving on to outlook. Today, I have provided an update on my ongoing assessment, our near-term priorities, and several of the actions already underway. As you will understand, we are not yet in the position to provide detailed guidance. We will set formal guidance once the leadership team has completed the strategic planning process. In the meantime, we want nonetheless to offer some directional context. In particular, I want to stress how current consensus estimates for production and deliveries are based on operating models that no longer reflect the figures we anticipate today. Consequently, based on our ongoing assessment, production and delivery figures are expected to come in below current consensus estimates. Specifically, production in Q3 and Q4 is expected to be below Q2 levels, reflecting AMP-1 transition from two shifts to a single shift configuration through year-end. On the other hand, given the availability of existing inventory, delivery should be above the deliberate reduction in production. Deliveries in the second half should benefit from recent product and service announcements and reflect sequential growth broadly consistent with the typical seasonal increase from Q2 to Q3. We expect growth to be more moderate than in the prior year period, which at the time also benefited from a pull forward of demand and the ramp of the Gravity model. When we are ready to provide formal guidance, it will be grounded in market-calibrated demand, lower inventory, and disciplined cash management. Above all, it will reflect commitments we are confident Lucid can deliver. For now, our business review remains underway, and Alexander De Bock, our incoming Chief Financial Officer, who joins us this week, will play a leading role in completing that work. What can you expect from us over the next two quarters in terms of further updates? In November, at our Q3 results, we will provide details on the progress of our $1.4 billion cash improvement for 2026, including a liquidity update. We will also provide a progress update on the Uber Nuro Robotaxi project and on the latest advancements of our AMP-2 factory readiness. At our year-end results, we will provide guidance for 2027 as well as midterm plan and targets. To wrap up, the work ahead is substantial, and rebuilding trust will take time. We have a clear understanding of the key issues. These issues are operational in nature, and we are fixing them. A deep transformation is in motion at Lucid, with a new team in place with clear priorities. The direction is clear. Focus on the fundamentals, execute the mainstream projects, act with discipline, and demonstrate progress through results. Lucid has the technology, products, and people to succeed. Our responsibility now is to build a disciplined operating model that converts those strengths into consistent performance. We expect to be judged by the results. Before I turn over the call, I want to thank Taoufiq for his outstanding efforts and loyal service to the company. His contribution and partnership throughout this transition reflect his professionalism, commitment, and integrity. Thank you, Taoufiq, and over to you. Taoufiq Boussaid: Thank you, Silvio. As Silvio outlined, we are focused on improving capital efficiency, preserving liquidity, and positioning the business for the successful launch and ramp of our Midsize platform and commercialization of our autonomous offerings. While our review of the business remains ongoing, we have already begun implementing actions. My comments today will focus on our liquidity position, second quarter financial results, the actions already on the way, and the priorities guiding our decision going forward. Turning to Q2 results, production was 4,774 vehicles, down 13% from 5,500 in the first quarter, a deliberate reduction and up 24% year-over-year from 3,863. We lowered production during the quarter deliberately to better align production with near-term demand, reduce inventory levels over time, improve capital efficiency, and preserve liquidity as we prepare for the launch and ramp of our Midsize platform and commercial robotaxi program. As Silvio and I have discussed, our objective is to stabilize the business and accelerate the path towards profitability. Looking ahead, we believe certain external expectations regarding our production levels do not yet fully reflect the operating assumptions guiding our decisions today, including the reduction of our manufacturing workforce to preserve cash. Our near-term focus is on improving unit economics, reducing cash burn, and progressing towards break even. Our objective is to allocate capital efficiently while maintaining readiness for the next phase. As we optimize incentives, improve product mix, and convert inventory into customer deliveries, we expect these actions to support average selling price, working capital efficiency, and operating cash flow. Q2 deliveries were 3,953 vehicles, up 28% from 3,093 in the first quarter and up 19% from 3,309 in the quarter a year ago. Lucid Gravity continued to be the majority of deliveries. Deliveries in the Middle East improved during the quarter. As a reminder, under our existing agreement, the government of Saudi Arabia has committed to purchase more than 4,000 vehicles during 2026 and annually through 2032, subject to the terms of the agreement. During the quarter, we continued working through the effects of the stop sales actions announced earlier this year. Deliveries improved as the quarter progressed, and we are focused on converting the remaining affected orders. As part of our back to basic priorities, we are determined to improve customer experience, product quality, and execution. Our focus remains on converting existing demand, shortening delivery cycle times, improving order to delivery execution, and restoring customer confidence through product and service performance. To be very clear, we are prioritizing margin, and we will not sacrifice pricing to chase volumes. Revenue was approximately $405 million, up 44% sequentially from $282 million in the first quarter and up 56% year-over-year from $259 million in the quarter a year ago. The increase was driven primarily by higher deliveries and improved product mix, reflected in a 3.7% overall sequentially increase in average sales price, which was further supported by higher regulatory credit sales revenue by $25 million. Besides pricing, we expect revenue growth ahead will be driven by improved sales execution and mix, an expanding service footprint, recurring software and subscription opportunities, and finally, future vehicle programs. On top of traditional EV sales, revenue streams from robotaxis are expected to be a new source of revenue growth. Q2 gross margin was a -105%, compared with -110% in the prior quarter and -105% year-over-year. Gross margin in the quarter reflects higher revenue sequentially, lower production volumes, which resulted in lower fixed cost absorption, and higher conversion cost per vehicle. Gross margin also reflects $300 million in impairment charges associated with inventory optimization actions, offset by a reduction in loss on firm purchases commitments as a result of lower volumes. This impairment has had a negative impact on gross margin of 74 percentage points in the current quarter. Gross margin also included $25 million of regulatory credit revenue. Adjusted EBITDA was -$901 million in the second quarter, compared to -$781 million in the first quarter. The sequential change was primarily driven by higher gross loss as we continue to ramp Gravity production through May, thereby increasing finished vehicle inventory. Operating expenses remained flat sequentially, reflecting reduced payroll from lower headcount, and the absence of certain one-time costs recorded in the first quarter. These benefits were partially offset by increased prototype parts and tooling for our Midsize platform, as well as sustained cost and investment related to the construction of our AMP-2 factory. Our focus during the quarter was not simply reducing inventory balances, but improving inventory quality. As noted previously, the $300 million impairment in the current quarter reflects a reassessment of carrying values and expected demand. We cut firm purchases commitments, proactively reducing future inventory obligations and cash requirements. Inventory conversion remains one of our most significant opportunities to improve working capital, free cash flow, and capital efficiency. A large part of our inventory has already consumed cash. Converting it into deliveries unlocks working capital and reduces our cash requirements. The efforts initiated as of June have not yet been able to offset the created inventory increase during the first five months of the year, during which Gravity production outpaced demand. Together with the impairments and lower purchase commitments, the inventory reduction improves the quality of our working capital position. Our objective is to accelerate the order to delivery to cash cycle and improve inventory turnover. As we convert finished inventory into deliveries, we expect stronger working capital efficiency, liquidity, and free cash flow. Free cash flow was -$1.476 billion during the quarter. A meaningful part of this is working capital trapped on the balance sheet rather than permanent burn. As we convert that inventory to cash, our free cash flow is positively impacted. The actions underway today are specifically designed to improve cash generation and reduce capital requirements going forward. Free cash flow was primarily affected by working capital investment, including the inventory built into finished Gravity vehicles ahead of deliveries, lower accounts receivable collections, accelerating the conversion cycle and increasing inventory turnover. More broadly, our operating assumptions today prioritize liquidity preservation, cash generation, and disciplined capital allocation. Investors should expect measured operating approach as we improve unit cost economics and progress towards profitability. In June, we launched a comprehensive review of the business to identify opportunities to reduce cash burn and improve cash flows while preserving our most important strategic initiatives. To date, we have identified approximately $1.4 billion in cash flow improvements for 2026. Implementation is already underway on many of these. The review continues. These opportunities span inventory, capital expenditure, and operating expenses. Together are intended to improve liquidity, reduce cash burn, and increase capital efficiency while preserving key growth programs, including our Midsize platform and autonomous commercialization initiatives. Turning to our liquidity position and financial flexibility, as of June 30th, we had $3 billion of total liquidity, including $800 million of cash and investment, $2.2 billion of available borrowing capacity through our credit facilities. Following the quarter, we drew an additional $800 million under our Delayed Draw Term Loan Facility. This strengthens our cash position, increases financial flexibility, and supports execution of the actions on the way. This transaction reflects continued support from our stakeholders and provides additional flexibility as we complete the construction of our AMP-2 factory and prepare for the launch and ramp of our Midsize platform. It also supports our autonomous initiatives and robotaxi programs, where we continue to work alongside strategic partners towards commercialization. Our priority remains maintaining adequate liquidity while preserving investments that are strategically important to Lucid's future. We continue to expect liquidity to extend well into 2027, further supported by ongoing organic improvements, including the announced $1.4 billion in cash savings in 2026. This gives us the flexibility to select the right timing to raise further additional funding while ensuring that we optimize the execution, pricing, and capital structure. Lucid will provide an updated liquidity outlook with its Q3 results. In closing, while our review remains ongoing, we have already moved from identifying areas for improvement to executing actions across the business. Manufacturing actions have been implemented, organizational changes have been announced and are being executed, cost reduction initiatives are underway, and additional opportunities across inventory, CapEx, and OpEx continue to be identified and implemented. At the same time, we are preserving investments in the program and technologies that strengthen the foundation for our next phase. We are not providing quantitative financial guidance at this time. However, we believe external estimates do not yet fully reflect three things: The lower near-term anticipated production given the reduction in the manufacturing workforce, the improved cost structure and cash preservation from recent workforce reductions and updated operating assumptions, and the upside to gross margin as we reduce inventories and release impairment provisions. We are confident in the direction of the company and will provide additional updates and guidance as we are able. Looking ahead, we remain on track for the launch of robotaxi service with our partners, Uber and Nuro, we continue to advance AMP2 and our Midsize readiness plan. We anticipate multiple opportunities to extend Lucid's technology platform to new applications over time. In closing, I would like to thank my colleagues at Lucid, partners, investors, and analysts for their engagement and support. It has been a privilege to serve as Lucid's CFO during this important chapter in the company's journey. I remain deeply confident in the strength of Lucid's technology, products, and people, and I look forward to watching the company continue to execute against the significant opportunities ahead. Thank you for your partnership and support. With that, I turn it back to the operator. Operator: Thank you. We will now begin the question and answer session by taking questions submitted through the Say Technologies platform first. Our first question comes from John R. "Thanks for stepping in as a legit CEO, Mr. Napoli. How confident are you and your team today in bringing Lucid Motors to a stable company? What message would you deliver to people who love and are loyal to Lucid Motors? Silvio Napoli: Thank you, John, for your question, your support, and your engagement reflected in your statement you make here. If I'm here, it's because I'm extremely confident in Lucid's future. The one thing that impressed me the most in joining is the depth of our technology, the strength of our people, but also the engagement and loyalty of our customers. You are a perfect example, and I think now is time that we reward this loyalty with performance. I am absolutely confident, and that's why we launched these priorities and mainstream projects. Delivering on those will set the platform for our success going forward and for a company that will always be stronger, closer with its customers, with new products, and also a much stronger service. Again, thank you for your question, and I look forward to providing more products and more technology and more service to you. Operator: Thank you. Our next question comes from Vikas A. "How is the restructuring of your expenses, manufacturing, and software coming along with new leadership in place? Silvio Napoli: Thank you, Vikas. We addressed the financial aspect of the software, I'd like to focus here about more the aspect of software. I also did mention in my statement how we are reviewing the whole aspect of software from conception to coding, into the installation, and into the service. I was at our factory last week, and I witnessed firsthand, as an example, how we are actually bringing software engineers and manufacturing line experts together in order to improve the process. As an example, we totally changed the way we do over-the-air upload of our software in our vehicles. By simply having these workshops, we improved our performance in terms of not only efficiency of the upload, but also quality. We get very good marks on, for example, the Gravity UX 3.6 release that just came out, and I'm very positive this will continue going forward. We are very conscious that software is a key element of key opportunity for us to improve our performance, and we'll continue doing so. Vikas, thank you for your support, and I look forward to showing results going forward in that regard, too. Operator: Thank you. The next question comes from William I. "Is Lucid ready to become more than just a car company by branching into ESS where it could see huge growth, especially if working with Saudi Arabia to achieve its 2030 goals? Silvio Napoli: William, thank you for this question. I think you point to a very important opportunity which I strongly believe in. That's why we created Lucid Technologies, which is meant to drive these opportunities, starting with the robotaxi, which I addressed during my speech, which is an immediate big opportunity. There will be others, many more, thanks to our technology. At the same time, before we get there, we need to stabilize the business. This is our priority today, our three Cs and our four must-wins. Then we create the platform. We have to be disciplined in not going after other things today, which may further strain our resources. ESS is definitely one of them. There are actually, in fact, many more, and I look forward to put ourself in a position to address all of them. Thank you for the confidence shown in your question. That again, indeed shows a big opportunity for Lucid going forward. We are resolved to get there by first strengthening and stabilizing the business. Operator: Thank you. Our last question comes from John R. "I purchased the AT, and I love to drive every day. Kudos to the teams. What is the plan to improve the quality of software issues/bugs? Could we stop tarnishing the brand name unveiling with the bad quality of the vehicle? Silvio Napoli: John, thank you for this. This is another question that I really like because it's direct and specific and addresses clearly one of a major opportunity. I addressed it in my answer to Vikas A. a second ago, how we are improving software, will not repeat it here. Again, your question reinforces a belief that having customer and quality as a central part of our strategy is absolutely essential to the future. In fact, customer and quality are the best investment we can do in a brand. That's why we are investing in service, and that's why we created a Chief Customer Officer position because we want someone accountable to me, but to the company, and to the Board, and to the driving forward with a single accountability point, all these actions, which address software, as I mentioned before. Many other aspects, which I think a great opportunity for us to improve not only versus our past performance, but also against the industry, which generally, I must say, from what I see, has a lot of room to improve in terms of customer service. Again, thank you for that. Reestablishing our brand and rewarding those to our customers is my absolute key priority. Operator: That concludes the questions from the Say Technologies platform. We will now take questions from the phone lines. As a reminder, if you would like to ask a question, please press star one. Our first question will come from the line of Andres Sheppard with Cantor Fitzgerald. Your line is open. Andres Sheppard: Hey, everyone. Good afternoon. Congratulations on the quarter, and thanks for taking our questions. First, I just wanted to quickly thank Taoufiq as well for all his contributions. It's been great working with you, and you will be missed. Regarding questions, Silvio, I wanted to maybe touch on the AMP-2 and Midsize a bit further. I realize you talked about it in your prepared remarks. I guess as we move closer to production of Midsize starting in early 2027, curious if you can maybe help us understand what are the milestones that are left regarding the completion of the Saudi plant? Separately, how should we think about those initial deliveries in the first half before ramping up in the second half of next year? Thank you. Silvio Napoli: Andres, thank you for your question. It is about AMP-2 and Midsize. What are the key milestones? Let's start with AMP-2. AMP-2, as I tried to address in my remarks, there are 12 of them, they're the ones that are attributable to us under our control, and the ones which are outside our direct control. Let me start. In terms of what is our control, the only thing missing is the industrialization testing of the different parts of the production line. There is the painting, there is the body in white, all the finish, which are now into final testing with the different suppliers that brought that. That is something which is on track. Of course, nothing should be taken for granted, that one we are confident we should be able to close them as planned by year-end. There are other parts which are outside our control, and this main involves certain element of local certification, but also it's access to power, for example. All the things that are in our control but have to be validated with the local authorities or agency, which so far have been extremely supportive. I'm very positive. The third element, which is not entirely in our control, is the suppliers' network, which is due to be built around this new manufacturing area being built in the very same geographical location where our factory is. These ones are not only it depends on the supplier corresponding, which we have only limited control, this is one thing that we need to keep close watch of. To be clear, we have backup plans. If they were late in their localization plans, we would be able, nonetheless, to proceed with production by importing the parts. This is all in flux. Again, not in our control, hence our caution into providing an exact date. In terms now of the Midsize. The Midsize, we're going through all the certifications. I mentioned all the lists and parts as part of my remarks. So far, I tell you also, based on my personal experience last week with this prototype, it is all looking very well. At the end, in automotive, until you have not produced a car, you don't know. Until there are all those certifications, and not only external, but also internal, that want to make sure are done well. To do it well takes time. In the past, mistakes were done. I want to make sure they're not repeated here. All in all, that's why we are not being held to account to a date established top-down. My objective is to launch the car when it is ready with top quality. When that moment will come, it's going to be in 2027, when we are clear about the date, I'll be communicating that to everyone. Andres Sheppard: Excellent. Thank you, Silvio. I appreciate all that color. That's very helpful. Maybe just as a quick follow-up. You highlighted a $1.4 billion cash flow improvement for the year, which is excellent. Now with $3 billion in total liquidity as of the quarter, just curious if you can maybe give us a sense of how you're thinking about capital needs going forward. Thank you. Silvio Napoli: Andres, thank you for the follow-up question. To be clear, capital needs going forward will be a function of the business planning we are just in the process of completing. We will once done with the planning and clarity on the top and bottom line, this will be the time to assess how to then manage a balance sheet. Depending on the findings, we'll decide. We have many options. We have a very supportive Board, as soon as we will have an answer on how to do that, we have different alternatives, we'll be communicating that. Andres Sheppard: Wonderful. Thank you again. Congrats on the quarter. Looking forward to working together. We'll pass it on. Silvio Napoli: Same here. Thank you, Andres. Operator: Thank you. One moment for our next question. That will come from the line of Alex Perry with Bank of America. Your line is open. Alex Perry: Hi. Thanks for taking our questions here. I guess first, I just wanted to ask, what milestones should investors be monitoring to measure progress in robotaxi? Maybe talk through some of the key learnings from your testing and validation in San Francisco and Houston. Thanks. Silvio Napoli: Yeah. Thank you. Alex, thank you for this question. Clearly, there are two elements. This is a tripartite partnership. I can comment on the learnings on the engineering EV supplier side. I will refrain from comment concerning the software and platform side, which are with our partners. Clearly, it's Houston and Bay Area. The idea is clearly we are a vehicle that is software-defined, the challenge of integrating that with the new firmware in the software is in fact facilitated by the way our vehicles are conceived. It is really essentially about how to make sure that all the checks and balances, all the redundancies, which are very much safety related, function through operations. As you can imagine, you probably read about this, robotaxi certification, it's a lot about miles accumulated, there are miles on the road, miles virtually, and now the whole system, which is now three, so the software, the firmware, and the vehicle respond to that. That is there a number. I personally, by the way, every two weeks review the state of the projects with my counterpart at Nuro. In parallel, there is a number also of certifications that have been dealt with by Nuro in terms of openness. It's passing all those certifications, making sure enough miles are accumulated that then paves the way for the final launch. This is what we're following. So far, there is honestly no red flag in terms of the engineering aspect, but again, there is new systems coming through. I was, last week, as I mentioned, in Arizona, and I saw how the prototype vehicles are being assembled and shipped to our partners, and I am very excited to see them on the road, and how they perform will be the next stage of validation of the project. Alex Perry: That's really helpful. Then my follow-up question was just on inventory and how you're thinking about inventory. How much do you plan to under produce relative to deliveries? What is the ultimate goal? I think you actually produce more than deliveries in the second quarter, I guess, is the expectation that sort of reverses as we move into the back half. When should we expect the inventory right-sizing to be complete? Silvio Napoli: I'd like to pass this question to Taoufiq, please. Taoufiq Boussaid: Hi, Alex. As we said, we are not providing a detailed guidance, but the baseline that we're starting from, we have published obviously our inventory. You saw the evolution since, I would say Q4 of last year. What we want to do is that between now and year end, we come back to a normalized inventory level. That's the plan that we're building. That's also one of the key component of the $1.4 billion cash optimization plan that we're working on. Normalization is supposed to happen by year end. As a result of that, the expectation is that production will slow down. When it comes to deliveries, we have the normal seasonality, which would help. You know that, and we have commented on that during our prepared remarks. We're expecting a growth for the second half of the year when it comes to the deliveries, this is really the key component of the plan, which will allow us to burn down the inventories that we have currently built. Obviously, the ultimate expectation is to release this trapped cash into real cash for the business. Alex Perry: Perfect. Silvio Napoli: If I may just, down on this question, Alex, for a second here. Going back to the earlier question. Inventory made me think about deliveries, right? Let's not forget this Uber Nuro project, for now, has 35,000 units, including in delivery. Those will start ramping up as of January, or as soon as the project goes live. I'd like to say, this is for us, not only for C, but as I said in my speech, this is really a new industry, which I think needs to be taken into consideration in terms of our growth prospects, which will not only be in this traditional EV, but very much so in an industry that is at the start of an exponential growth. Therefore, this project provides us a unique chance to position us for an additional growth with higher volumes and higher margins, as I said. I feel very strongly about that. Also, the investment and resources we are dedicating to that. Sorry, just wanted to bring that point back. Alex Perry: Perfect. That is all incredibly helpful, best of luck going forward. Silvio Napoli: Thank you, Alex. Operator: One moment for our next question. That will come from the line of Andrew Percoco with Morgan Stanley. Your line is open. Andrew Percoco: Great. Thanks for taking the question. Taoufiq, great working with you and wishing you the best, in your next endeavor. I guess, maybe to start, just where we kind of left off with that last question on inventory and the inventory turn, can you provide any more, I guess, clarity or color around within the buckets of inventory you put in the deck, raw materials, WIP, and finished goods? What's the proportion for split between Gravity and Air within that? Taoufiq Boussaid: We can give you some indication. First of all, hi, Andrew, and thank you very much for your very nice words. Again, we are not breaking down the inventories by categories, but what we have said is that the majority of the production has been about Gravity. You can take a reasonable assumption and consider that the big part of what we currently have on hand is Gravity related. Andrew Percoco: Okay, got it. That's helpful context. Then maybe just one question on manufacturing strategy. Obviously, right now running AMP-1 at a pretty low utilization rate, and you're still kind of ramping AMP-2 here. I'm just kind of curious what your philosophy or your strategy is in terms of potentially consolidating Midsize production into AMP-1 and maybe mothballing AMP-2, or just like, what are your thoughts in general about trying to be maybe a little bit more capital efficient and running a higher utilization rate to optimize that fixed cost structure while demand is relatively de minimis, in the near term? Silvio Napoli: Andrew, thank you for the question. In essence, this is part of what we're looking at now as part of our strategic planning. To be clear, I have the same question coming in, but the fact is today, the AMP-1 factory is meant to design to produce Air and especially Gravity. The way the factory is designed, introducing a new line will create inefficiencies on the other models. That's why the decision was taken to put this factory with a new platform in Saudi Arabia with AMP-2. Going forward, our job is to make sure we ramp it up with quality on both sides. Let's not forget that now we have a new source of volume, which is the robotaxi. Our plan is to optimize capacity utilization by also looking at these volumes and others that may come going forward, first of all, by traditional business, but also by others that Lucid Technologies might generate. For now, that's all we can say, but I think it's a very understandable question and one that is, we cannot answer now, but feel it key to our profitability going forward. Andrew Percoco: Okay. That's super helpful. Appreciate it. Silvio Napoli: Thank you, Andrew. Operator: Thank you. Our next question will come from the line of Stephen Gengaro with Stifel. Your line is open. Stephen Gengaro: Thanks, and thanks for taking the question. Thanks for all of the details. Two things for me. The first is when, and I know you're maybe not ready to give a whole lot of detail, but when you think about the next couple of years, is the underlying business plan changing as far as willingness to license the technology as one thing I'm thinking of, and also just the focus and importance of the Midsize? Is there anything material changing in the underlying plan? Is it all sort of financial and cost related? Silvio Napoli: Stephen, thank you for the question. The line is not ideal, but I do think your question related to the idea of licensing. I think as we look at our business planning, licensing absolutely is an option. Lucid Technologies is indeed, those one activities will be to license or sell our components into either automotive EV, but possibly also to other industries. That is very much something we're looking actively at. At the same time, allow me to come back. This will only be possible when we've stabilized the business. Our priority now is really a three season, a four must win, because then we're going to have the sustainable business model to take us forward. All of, I think what I understood you mentioned, is still very much possible, and actively looked at, but we're also very conscious of our priorities, which are at the moment is to stabilize our business as it is today. Stephen Gengaro: Okay, great. Thank you. Silvio Napoli: Thank you. Operator: Thank you. One moment for our next question, that will come from the line of Itay Michaeli with TD Cowen. Your line is open. Itay Michaeli: Great. Thank you everybody. It's been great working with you. Thank you for everything, all the best. Maybe just, first question, I'm curious what the go forward kind of marketing and branding campaign might look like as you sort of curtail production and maybe hopefully can strengthen pricing. Just kind of curious how you're thinking about brand positioning, particularly ahead of the Midsize launch. Silvio Napoli: Itay, thank you for the very current question. Something which in fact I realize I didn't speak much about this time for, I will probably elaborate more next time, is that we are, as we speak, carrying out, we just initiated actually this week, in fact, a whole I call it a brand audit, then will allow us to reposition our brand in a way that is consistent with our product. Today our brand is very strong, I think it is fair to say the approach, the understanding of the brand is not consistent across every sector, every market, I'm going to say even internally within a company in the sense of how people see that. I want to make sure that this is clear because this is a strength. Building on that asset is a clear platform to go forward. I look forward to sharing more about that. I do concur with your view that it's something needs to be looked at. This is independently from the volume we do, this is a key to differentiate our offering and make sure that we build on our strength, we are clear about our priorities and what makes our products unique in the eyes of our customer. This will have to include more and more the customer experience, not only engineering aspects, but to relate to the emotions that our products evoke in customers, which frankly speaking, one of the reasons why I also came to Lucid in the first place. Itay Michaeli: That's helpful. As a quick follow-up, I think it was mentioned a few times, sort of an effort to improve the unit economics. Typically, there is some relationship between volume and unit economics. I'm curious sort of during this period where volume is a bit more in a kind of a lull period, how you're able to improve unit economics and sort of maybe some targets there would be helpful. Thank you. Silvio Napoli: Itay, thank you for the follow-up question. I'm not in a position again to provide targets. What I can tell you is that our suppliers have been extremely supportive in the way we look at different volumes in combination with profitability, and say unit economics. At the same time, there are things that are also in our control. For example, we have way too many options. Working on our configurator to make sure we focus on the trims that also support economics, is a key element. You can imagine that is in itself a great opportunity. That's an example of exactly the type of non-stopping exercise to look into every aspect of the business to make sure we establish a solid way forward. Thank you for the question, which allow me to address that. I will look forward to coming with more detail as we continue changing. Itay Michaeli: Thank you. Silvio Napoli: Thank you. Operator: Thank you. As a reminder, if you have a question, please press star one. Our next question will come from the line of Michael Ward with Citigroup. Your line is open. Michael Ward: Thank you. Good afternoon, everybody. When I look at page 23, and you talk about $1.4 billion in cash savings by the end of the year, are those annualized savings, cash savings, or a run rate? Is it all going to occur in the second half? Taoufiq Boussaid: Hi, Mike. Thanks for the question. The $1.4 billion is what we're expecting to save this year between now and year-end. That's a 2026 impact that will be reflected in our results. Michael Ward: Okay. Taoufiq Boussaid: Now, part of it, obviously, as you can imagine, we will make it sustainable. Michael Ward: Right Taoufiq Boussaid: Part of it will be impacting as well, the baseline for next year. We're trying to do things from a structural standpoint, removing some of the cash. There are also part of these savings and optimizations, which are leveraging phasing. Some spend will be potentially pushed to next year. When you read the $1.4 billion, read it as an impact in 2026. Michael Ward: Perfect. It sounds like some of the CapEx are deferred, they're not eliminated. It sounds like the inventory, it looks like to get back to the December 2025 level, it's like $300 million. There's more there. That sounds, it's more of a structural change. Is that the right way to read it? Taoufiq Boussaid: Absolutely Michael Ward: ...getting more efficient with the [inventory there]? Taoufiq Boussaid: That's absolutely the right point. We refer to it in the prepared remarks. It's really about how we accelerate the conversion cycle. Reducing the timing between the moment where we receive the raw materials for our products into converting them into WIP and finished goods. That's something that we're working on from a structural standpoint, and it's really about carrying the lowest level of working capital and translating this working capital into revenues as soon as possible. This obviously touches receivables, payables. It's really an end-to-end approach and structural change to your point that we're implementing currently. Michael Ward: It leads to a lower inventory write-down, correct? Taoufiq Boussaid: That's right. Michael Ward: The second thing is on the Cosmos. Where are those prototypes being built? It sounds like you have some out there being tested and certified already. Where are those being put together? Are they in AMP-1 or? Silvio Napoli: AMP-1. Today, it's assembled in Coolidge. We have a factory next to AMP-1, which we consider a part of it, which is still in Arizona. Today we have the pilot lines in Coolidge, in a facility which is just a few miles away from Casa Grande. This is where we also have a test track. That's how we drive our prototypes. Michael Ward: Okay Silvio Napoli: Make them ready. There is actually an interesting technology transfer that we're going to do from Coolidge into Saudi Arabia. In fact, we have a whole line testing everything before we can be transferring it to AMP-2 in Saudi Arabia. Michael Ward: When will the prototypes begin coming off AMP-2? Silvio Napoli: As I said before, they will be coming prototype. That will be starting in early 2027, and the full AMP production will be in the second part. Michael Ward: Okay. Thank you very much. Really appreciate it. Silvio Napoli: Thank you, Mike. Operator: I'm showing no further questions in the queue. I'd like to turn the call back over to Silvio for any closing remarks. Silvio Napoli: Thank you. As we come to a close here, I'd like to thank you all for joining us today, for your engagement and for your questions. Our priorities are clear: reduce cash burn, improve quality and the customer experience, build a high-premium team and culture, simplify the company, and deliver our must-win projects. We know that rebuilding credibility will take time, and we intend to earn it through consistent results. Thanks again. I look forward to seeing you again soon and continuing our conversation. Bye-bye. Operator: This concludes today's program. Thank you all for participating. You may now disconnect. Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Lucid (LCID) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

The help that flattered the June quarter is gone from the second half, and what replaces it depends on suppliers the company does not control. Rivian Automotive (RIVN) trades at $15.56, below both its 50-day and 200-day averages and about 31% under its 52-week high. The market has already marked the stock down from its high, so the question is where the risk that remains actually sits. The biggest risk is not demand for the new R2. It is how much of the 2026 profit case now rests on one quarter. The Fourth Quarter Is Carrying The Profit Case The 2026 guide is 65,000 to 70,000 vehicles, and management says the second-half deliveries are weighted toward the fourth quarter. The profitability claim sits in the same place: positive automotive gross profit only as a 2026 exit rate. That is heavy freight for one quarter. On $1.14 billion of automotive revenue in the June quarter, the automotive line was still a $36 million loss, and that was with a $103 million year-over-year lift from regulatory credits, plus a separate tariff refund receivable. Management points to the absence of those credits in the second half as a bigger driver of the heavier second-half loss than the R2 ramp. The ramp itself is funded from the balance sheet: about $5.3 billion of cash and short-term investments at quarter end, plus roughly $1.3 billion raised in a July share sale. Funding growth out of operating cash rather than out of new shares is the ordinary condition of the businesses held in the Trefis High Quality Portfolio. Rivian only reaches that positive 2026 exit-rate gross profit by building the vehicles. The Gate Is A Supplier, Not A Buyer Demand is not the soft spot. The $58,000 version of the R2 is converting reservations into orders at a higher rate than management expected, and the company hosted more than 57,000 demo drives in the June quarter, a record. Amazon now runs more than 40,000 Rivian electric delivery vans, which keeps the commercial line growing. The constraint is upstream. By management's own description, output is gated by the slowest-moving supplier, and the plant in Normal, Illinois is still building R2 on a single shift; the second shift is not expected to add material volume until the fourth quarter. Ramp inefficiency alone added about $100 million to cost of revenue in the June quarter, and management has flagged rising raw material, memory and logistics costs on top of it. The Options Market Is Pricing Calm Into The Riskiest Stretch The stock is up about 25% over the past year, ahead of the S&P 500, and yet inside that same year it fell 43% from peak to trough, so the tape has already shown what a stumble costs. Options price implied volatility at the 21st percentile of its own trailing year, near the bottom of that range, which is the market treating the R2 ramp as routine. The one number that settles this is fourth-quarter automotive gross profit, because management has put the entire profitability claim on that single line. Until then the fall already taken out of the price is the whole compensation for holding through the ramp, and whether that is enough is what a dip screen is built to test. A Single Ramp Is A Narrow Place To Stand None of this says the ramp fails. It says one company's fourth quarter is carrying an outsized share of the outcome, and how much of a portfolio rides on that one quarter is the holder's choice, which is the argument for holding a rules-based basket such as the Trefis High Quality Portfolio alongside it. That portfolio has a track record of outpacing the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.

Lucid Group, Inc. LCID reported a second-quarter 2026 loss of $3.30 per share, wider than the year-ago loss of $2.80 as well as the Zacks Consensus Estimate of a loss of $2.72. Revenues surged 56.2% year over year to $405 million and beat the consensus estimate of $323 million by 25.4%. Higher vehicle deliveries, improved product mix and increased regulatory credit sales supported the top line. Lucid produced 4,774 vehicles during the quarter, up 24% year over year. Production declined 13% sequentially as management deliberately reduced output to align manufacturing with near-term demand and limit further inventory growth. Deliveries rose to 3,953 vehicles, up 19% year over year and 28% sequentially. Lucid Gravity accounted for the majority of volumes. Revenues also benefited from a 3.7% sequential increase in average selling price and a $25 million increase in regulatory credit sales. Deliveries in the Middle East improved during the quarter. Lucid currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Gross margin was negative 105%, compared with negative 110% in the first quarter and negative 105% a year ago. Lower production reduced fixed-cost absorption and raised conversion costs per vehicle, offsetting the benefits of higher revenues and improved pricing. Results included roughly $300 million of inventory impairment charges, which reduced gross margin by 74 percentage points. The charge reflected a reassessment of inventory carrying values and expected demand. Lucid also reduced firm purchase commitments to lower future inventory obligations and cash requirements. Adjusted EBITDA loss widened to $901.1 million from $632.1 million in the year-ago quarter. Operating expenses included $321.3 million of research and development costs, $300.4 million of selling, general and administrative expenses and $33.7 million of workforce-reduction charges. Management identified $1.4 billion of cash flow improvements for 2026. The plan includes projected inventory savings of $600-$800 million, capital expenditure reductions of about $500 million and operating expense savings of roughly $200 million. Lucid’s U.S. workforce reduction and elimination of the second shift at its Arizona factory are expected to generate $158 million in annualized savings. Lucid’s robotaxi program with Uber and Nuro moved deeper into testing and validation. The engineering fleet includes nearly 100 vehicles operating across the San Francisco Bay Area and Houston. Production-validation Gravity vehicles have begun reaching partners, with regular production expected in the fourth quarter and service launch targeted for late 2026. The AMP-2 factory in Saudi Arabia has shifted from construction to industrialization. Manufacturing systems for stamping, body, paint and final assembly are being installed and tested. Lucid expects the facility to be ready for production in early 2027 and for midsize production in the second half of that year. Lucid ended the June quarter with $3 billion of total liquidity, including about $800 million of cash and investments and $2.2 billion of available borrowing capacity. Free cash flow was negative $1.48 billion, compared with negative $1.01 billion a year earlier. Net cash used in operating activities totaled $1.22 billion, while capital expenditures were $253.8 million. Inventory increased to $1.38 billion from $1.11 billion at the end of 2025. Lucid did not provide quantitative financial guidance. Management expects third- and fourth-quarter production to remain below second-quarter levels as AMP-1 operates with one shift through year-end. Deliveries are expected to exceed production during the second half as Lucid works down finished-vehicle inventory. Management anticipates sequential delivery growth consistent with normal seasonality, though at a more moderate pace than in the prior year. The company expects its current liquidity and operational measures to provide runway well into 2027. General Motors GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected in the range of $12-$14 per share, up from the prior range of $11.50-$13.50. Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. Ford F reported second-quarter 2026 adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate of 33 cents by 27.27%. Earnings rose 13.5% from 37 cents a year ago. Automotive revenues of $44.89 billion fell 4.4% year over year and missed the consensus mark of $45.72 billion by 1.81%. Ford’s consolidated second-quarter revenues came in at $48.3 billion, down 3.7% year over year. The company raised its full-year adjusted EBIT outlook to $10-$11 billion from $8.5-$10.5 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lucid Group, Inc. (LCID) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Lucid Group (NASDAQ: LCID) stock tumbled 15% through 10:50 a.m. ET Wednesday after missing on earnings last night. Heading into the report, analysts already weren't optimistic, predicting Lucid would lose $2.36 per share on $422.3 million in sales. Per-share losses actually totaled $2.78, however, and Lucid managed only $405.3 million in quarterly sales. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » The fact that these earnings were awful isn't lost on Lucid, which is promising an "operational reset" to fix its problems. Despite producing 4,774 vehicles (24% more than in last year's Q2), Lucid managed to sell only 3,953 of them -- up 19%, but still up less than the increase in production. Revenue did grow a substantial 56% year over year, but that still wasn't enough to turn Lucid profitable. Cash burn accelerated 46%, with Lucid burning another $1.5 billion in the quarter. That leaves Lucid with less than $733 million in the bank (not enough to last it another quarter), alongside more than $3 billion in long-term debt and "other long-term liabilities." This cash burn rate is arguably the biggest problem facing the electric car company -- and it's the problem Lucid is working most actively to fix. Management says it's "identified $1.4 billion cash flow improvement opportunities in 2026 across operating expenses, capital expenditures, and working capital." Still, that would cover only one quarter of burn at the company's current burn rate -- and the year is four quarters long! At the same time, Lucid is sinking more cash into building a second factory, "AMP-2" in Saudi Arabia, which will build even more of the EVs it's struggling to sell. Plans to build robotaxis for Uber (NYSE: UBER) might help create demand. If that demand fails, though, look out below! Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $396,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,300,820!* Now, it’s worth noting Stock Advisor’s total average return is 939% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 5, 2026. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy. Why Lucid Stock Crashed After Earnings was originally published by The Motley Fool

Interested in Lucid Group, Inc.? Here are five stocks we like better. Lucid is undertaking a broad turnaround, targeting approximately $1.4 billion in 2026 cash-flow improvements through workforce reductions, lower production, reduced capital spending and working-capital initiatives. Production will remain below second-quarter levels as the company works to normalize inventory and extend liquidity into 2027. Second-quarter deliveries and revenue improved, but profitability remained severely negative: revenue rose 56% year over year to about $405 million, while gross margin was negative 105% and free cash flow was negative $1.476 billion. Lucid ended June with $3 billion in liquidity and later drew another $800 million under its term loan facility. Management is prioritizing customer service, quality and strategic growth projects, including expanded service staffing, the Uber-Nuro robotaxi program targeted for a late-2026 launch, and the Saudi AMP-2 plant expected to begin production in 2027. Uber’s Waymo Detour Tests the Stock’s Robotaxi Bull Case Lucid Group (NASDAQ:LCID) outlined a broad operational reset during its second-quarter 2026 earnings call, with newly appointed CEO Silvio Napoli saying the electric-vehicle maker is targeting approximately $1.4 billion in cash-flow improvements this year while reducing production, lowering inventory and addressing customer-service and quality concerns. Napoli, speaking on his first quarterly call as CEO, said Lucid has “not executed consistently,” citing missed commitments, product launches before vehicles were ready, insufficient service investment, slow responses to quality issues and organizational complexity. He said the company’s turnaround will focus on three areas: cash and cost; customer and quality; and culture and team. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Tesla’s EV Rebound Leaves Rivian and Lucid Facing a Tougher Investor Test “Potential is not performance, and effort is not the same as results,” Napoli said, adding that the company aims to rebuild trust with customers, employees, suppliers and investors through more disciplined execution. Lucid produced 4,774 vehicles in the second quarter, down 13% from 5,500 in the first quarter but up 24% from a year earlier. The company said the quarterly production reduction was deliberate, intended to better align output with near-term demand, reduce inventory and preserve liquidity. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Uber’s AV Pivot: Growth Opportunity or Margin Risk? Deliveries rose to 3,953 vehicles, up 28% sequentially and 19% from the prior-year quarter. Chief Financial Officer Taoufiq Boussaid said the Lucid Gravity accounted for the majority of deliveries, while deliveries in the Middle East improved. Lucid also continues to operate under its existing agreement with the Saudi government, which has committed to purchase more than 4,000 vehicles during 2026 and annually through 2032, subject to the agreement’s terms. Revenue reached approximately $405 million, rising 44% from the first quarter and 56% from the year-earlier period. The increase reflected higher deliveries, improved product mix, a 3.7% sequential increase in average selling price and $25 million in higher regulatory-credit sales revenue. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Lucid reported a gross margin of negative 105%, compared with negative 110% in the first quarter. The result included a $300 million impairment charge tied to inventory optimization actions, which reduced gross margin by 74 percentage points. The company said the charge reflected a reassessment of inventory carrying values and expected demand. Adjusted EBITDA was negative $901 million, compared with negative $781 million in the prior quarter. Free cash flow was negative $1.476 billion, driven in part by working capital, including finished Gravity inventory built ahead of deliveries and lower accounts-receivable collections. As of June 30, Lucid had $3 billion in total liquidity, consisting of $800 million in cash and investments and $2.2 billion of available borrowing capacity. After the quarter ended, the company drew an additional $800 million under its delayed-draw term loan facility. Lucid said it expects its liquidity runway to extend well into 2027, supported by its savings initiatives. Napoli said Lucid reduced its U.S. workforce by one-fifth during his first month as CEO and eliminated the second shift at its Arizona factory. The two actions are expected to generate $115 million in projected annualized savings. The company has identified roughly $1.4 billion of cash-flow improvements in 2026 across operating expenses, capital expenditures and working capital. Boussaid clarified during the question-and-answer session that the $1.4 billion represents expected savings during 2026 rather than solely an annualized run rate. Some actions will be structural, while others include the timing or deferral of spending. Lucid intends to return inventory to a normalized level by year-end. Management said production in the third and fourth quarters is expected to fall below second-quarter levels as its Arizona AMP-1 facility operates with one shift through year-end. Deliveries, however, are expected to exceed production as the company converts existing inventory into cash. The company expects second-half deliveries to grow sequentially, broadly in line with typical seasonal improvement from the second to third quarter, though management said growth should be more moderate than in the prior-year period. Lucid created a Chief Customer Officer role and hired Billy Hayes to lead efforts to improve the ownership experience. The company plans to increase technicians and dedicated customer-support staff by 35% by year-end, while increasing mobile-service capacity by more than 20%. Lucid said it expects investments in staffing, parts availability and service operations to reduce customer wait times by more than 30%. Napoli also said the company is tightening software-validation and release processes after identifying software as a common source of customer dissatisfaction. During the quarter, the company said it improved software quality across the Gravity and Air models, focusing on infotainment stability, access control and over-the-air update reliability. Its Lucid UX 3.6 software release added hands-free drive assist along with other features and stability improvements. On the organizational front, Napoli said Lucid has simplified its leadership structure, halving the number of direct reports to the CEO and establishing a more defined C-suite. The company also created a Chief Transformation Officer role, appointing Hugo Martinho to oversee a new business-process function intended to increase discipline and accountability. Lucid identified its partnership with Uber and Nuro on robotaxis as a key strategic project. Napoli said the program has an engineering fleet of nearly 100 vehicles operating in the San Francisco Bay Area and Houston. The company began delivering production-validation vehicles to Uber and Nuro last month from its Coolidge, Arizona, facility. Lucid expects regular vehicle production for the project to begin in the fourth quarter, followed by a planned robotaxi launch in late 2026. Napoli said the company is tracking testing mileage, safety-related validation and certification milestones, while Nuro leads the software and platform components of the partnership. The company also established Lucid Technologies, a new unit that will combine artificial intelligence, advanced driver-assistance systems and digital functions. Kay Stepper, previously head of Lucid’s ADAS and autonomy organization, will lead the business as president of Lucid Technologies and chief digital officer. Meanwhile, Lucid expects its AMP-2 plant in Saudi Arabia to be ready for production in early 2027 and prepared to begin midsize production in the second half of that year. Manufacturing equipment is being installed and tested across stamping, body, paint and final assembly, according to Napoli. He said the factory’s readiness also depends on supplier localization and supporting infrastructure, though Lucid has contingency plans to import parts if suppliers’ local operations are delayed. The company’s Cosmos vehicle, its first midsize-platform model, is in advanced testing and is expected to be the first vehicle produced at AMP-2. Napoli said Lucid will not provide a specific launch date until the program has completed required quality, certification and manufacturing validations. Lucid did not provide formal financial guidance, saying its business review remains underway. The company plans to provide an update on its cash-improvement plan, liquidity, robotaxi program and AMP-2 readiness with third-quarter results in November, followed by 2027 guidance and midterm targets at year-end. Lucid Group, Inc is a California-based electric vehicle manufacturer specializing in the design, engineering and production of luxury electric sedans. Its flagship model, the Lucid Air, features a proprietary battery and powertrain architecture that emphasizes energy efficiency, extended driving range and high performance. In addition to passenger vehicles, Lucid offers charging solutions and software-enabled services aimed at optimizing the ownership experience and accelerating adoption of zero-emission transportation. The company was founded in 2007 under the name Atieva, initially focusing on battery technology and electric powertrains for other automakers before transitioning to its own branded vehicles. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Lucid Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

The revenue beat and the raised outlook are real, and so is the company's own account of what paid for them. Only One Of Rivian's Segments Turned A Gross Profit Rivian Automotive (RIVN) reported $1.66 billion of revenue for Q2 2026, up 27% year over year, and an adjusted loss of $0.47 a share where Wall Street had looked for $0.65. The stock still fell 9.6% on the first trading day after the report, while Tesla (TSLA) and the S&P 500 both rose over the same span. Investors read past both beats to profitability, which sits one level under the headline: consolidated gross profit was $179 million, but the automotive segment inside it lost $36 million. Every dollar of gross profit came from software and services, where 60% of that segment's revenue was attributable to the joint venture with Volkswagen Group. The Regulatory Credits That Do Not Repeat By the company's own account, the automotive line improved on higher volumes and a $103 million year-over-year increase in regulatory-credit revenue. The company's CFO put first-half 2026 regulatory credits at $164 million and named their absence as the bigger driver behind an adjusted EBITDA loss that guides steeper in the back half of 2026 than the front. The $50 million midpoint improvement in the 2026 adjusted EBITDA guide came from those second-quarter credits and higher delivery volumes, against rising raw material, memory, and logistics costs. R2 Costs More Before It Costs Less R2 deliveries to external customers began June 9, with production running a single shift at the plant in Normal, Illinois, and that ramp alone added about $100 million to cost of revenue in Q2. Management expects that drag on automotive gross profit to repeat in Q3 2026 and points to Q4 2026, when a second shift lifts output, as the point where scale cuts what each vehicle costs to build. The raised guide of 65,000 to 70,000 deliveries for 2026 implies roughly 42,400 to 47,400 in the back half, the volume the margin case needs. Q4 2026 Is The Print That Tests This Nobody owns this stock for the income statement in front of them; the case is that R2 eventually pushes enough volume through Normal to cover its own cost. Management still expects R2 to turn a positive gross profit as part of the 2026 exit rate, so Q4 2026 is the print that tests that target, with a second shift running and the first-half credit help absent. With that much riding on one print, it is worth knowing what the options market is pricing for a move of that size. A Turn That Depends On One Quarter Of Volume Rivian's case hangs on one quarter going right, which is a concentrated way to own a stock. The Trefis High Quality Portfolio spreads that risk across companies whose profits already exist. That portfolio has a track record of outpacing the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000. .

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. Click here for the latest stock market news and in-depth analysis, including events that move stocks Read the latest financial and business news from Yahoo Finance