Lucid widely misses earnings expectations, forecasts continued EV growth in 2026

Lucid Group reported mixed fourth-quarter results Tuesday as the all-electric vehicle maker continues to face challenging market conditions and internal struggles.

The company widely missed Wall Street’s quarterly earnings expectations, while beating average revenue estimates by roughly 12%. It also revised its 2025 production results due to internal validation issues, but guided for a notable increase in vehicle production this year.

Here’s how the company performed in the fourth quarter compared with average estimates compiled by LSEG:

• Loss per share: $3.62 vs. a loss of $2.62 cents expected
• Revenue: $523 million vs. $468 million expected

Lucid’s results come days after the company laid off 12% of its U.S. salaried workforce in an effort to streamline operations and “operate with greater efficiency and deliver on our commitments to gross margin improvement and long term growth,” according to a statement from the company.

Interim Lucid CEO Marc Winterhoff described the cuts Tuesday to CNBC as a needed realignment of the company’s workforce amid broader market and economic concerns as well as needed gains in efficiency.

“We are adjusting and going to a level where we think we want to be and need to be,” he said. “But it’s nothing that will continue in the future.”

For 2026, the company announced a vehicle production target of between 25,000 and 27,000 units. That would mark an increase of roughly 40% to 51% compared with the year-end figures the company released Tuesday.

Lucid said the revision for the year — from 18,378 units to 17,840 units — came as “538 vehicles had not completed certain internal procedures required under its final validation process to be classified as produced.”

The company said the vehicles are expected to be completed this year, with the change not affecting its previously reported financial results.

Winterhoff described the expected growth as “healthy,” but not “outrageous” given the current slowdown in overall vehicle sales, including EVs.

“Our initial plans were higher, but we wanted to really be conservative and make sure that we are hitting the numbers that we are projecting,” he told CNBC.

Lucid is expected to begin production of a new, less expensive midsize vehicle at the end of this year, but Winterhoff said it will not be material to its 2026 production plans. He said the automaker’s Gravity SUV is expected to account for the majority of its production and sales this year, followed by the Air sedan. The company also plans to launch its first Lucid robotaxis with previously announced partners.

Winterhoff said the company’s main priorities this year are achieving its production target, growing sales, continuing efficiency gains and preparing for production of the midsize vehicle and robotaxis.

“We really want to make sure that we on our path to profitability, make sure that we’re not spending money that we don’t have to. That’s very, very important,” he told CNBC.

Lucid has yet to say when the company expects to be profitable. It is scheduled to host an investor day on March 12 in New York.

Lucid said it ended last year with approximately $4.6 billion in total liquidity, which Lucid CFO Taoufiq Boussaid said was “strong” and would provide flexibility “to execute near-term objectives while investing in future growth.”

Lucid reported a net loss of $2.7 billion in 2025, in line with a $2.71 billion loss a year earlier. That includes more than doubling its year-over-year losses during the fourth quarter to $814 million. It reported a loss of $12.09 per share for the year.

The company’s 2025 revenue was up 68% to $1.35 billion, including more than doubling year-over-year results during the fourth quarter.