Lucid Motors has reported mixed results for the fourth quarter of 2022, missing earnings estimates while exceeding revenue expectations. The California-based electric vehicle (EV) manufacturer also outlined ambitious growth plans, aiming to produce between 25,000 and 27,000 vehicles in 2023. This production target represents a significant increase from last year’s output of 17,840 units. The company’s future profitability is increasingly tied to the anticipated launch of its $50,000 midsize crossover, set to debut by the end of this year.
During an earnings call, Lucid’s Chief Financial Officer, Taoufiq Boussaid, emphasized a cautious approach to production, stating, “With greater control over production and with an eye towards caution in 2026, as we focus on long-term sustainable profitability, we expect to produce between 25,000 to 27,000 vehicles for the year.” Interim CEO Marc Winterhoff indicated that the majority of this production would consist of the Gravity SUVs, which faced initial production challenges last year due to hardware and software issues. By the last quarter of 2025, however, production processes appeared to stabilize.
Despite showcasing well-engineered vehicles, Lucid has faced obstacles in ramping up sales. The company primarily operates in high-end segments, where brand awareness remains a hurdle. The Lucid Air, celebrated for its impressive 500-mile range, has been hindered by its sedan design, which limits broader market appeal. Similarly, the three-row Gravity SUV is not expected to drive substantial sales volumes, with projections indicating that Lucid may not exceed its quarterly output of approximately 8,000 units achieved in Q4 2022.
The upcoming $50,000 midsize crossover is viewed as Lucid’s best opportunity to boost production numbers and move closer to profitability. Rivian, another electric vehicle manufacturer, faces a similar challenge with its upcoming R2 crossover. To manage costs, Lucid recently laid off 12% of its U.S. workforce, a decision expected to save the company $500 million over three years.
Competition in the midsize EV market is intensifying. Models such as the BMW iX3, Mercedes-Benz GLC, and Rivian R2 are set to launch soon, raising questions about Lucid’s ability to capture market share with its new offering. Winterhoff reaffirmed the company’s commitment to producing midsize vehicles by the end of 2026, but clarified that meaningful production volumes are unlikely this year. More details regarding Lucid’s midsize EV plans will be shared during the investor day on March 12.
As Lucid Motors navigates these challenges, its focus on the forthcoming midsize crossover will be crucial in determining the company’s trajectory in an increasingly competitive landscape.
