By Abhirup Roy
SAN FRANCISCO, Aug 4 (Reuters) - Lucid plans to launch its more affordable EVs in the second half of 2027, delaying the planned rollout from late this year, its CEO said on Tuesday, as the company carries out a major business review and cuts costs.
The EV maker's shares fell as much as 11% after the bell.
U.S. electric vehicle manufacturers have been grappling with lower demand since the removal of key tax credits late last year, pushing companies to pause or cut production and cancel
new EV plans, and instead focus on delivering more affordable models.
Lucid too is counting on a smaller and cheaper mid-size vehicle platform it is developing to fuel future growth, while pursuing a robotaxi rollout through partnerships with Uber and self-driving startup Nuro, but until those efforts start raking in revenue, the company is prioritizing tighter cost controls.
CEO Silvio Napoli told Reuters the company's luxury Air sedans and Gravity SUVs were launched "a bit in haste" and that he did not want to "repeat the mistakes of the past."
"My objective is that we launch mid-size when it is ready to be on quality," Napoli said in an interview. "I think it's important we don't feel attached to a date that was fixed before and where there is some risk."
Lucid has been navigating supplier-related issues that have disrupted production, especially since the launch of its Gravity SUV.
It also said it was aiming to save $1.4 billion in cash this year, primarily by cutting production and inventory after posting mounting losses for the second quarter.
CASH SAVINGS
Lucid's projected savings include an estimated $600 million to $800 million cut in inventory. The company said it "deliberately reduced production to better align output with anticipated demand."
It also plans to cut capital expenditure by about $500 million and operating expenses by $200 million, with recent job cuts expected to save about $158 million annually.
The plan comes weeks after it denied as "completely false" a report about a potential take-private deal or a Chapter 11 bankruptcy filing.
Backed by Saudi Arabia's Public Investment Fund (PIF), Lucid said last month it would cut about 18% of its U.S. workforce and appointed former Schindler chief Napoli as CEO, after suspending its 2026 production outlook.
Last week, a regulatory filing showed Saudi billionaire Prince Alwaleed bin Talal Al Saud had taken a 5% stake in the company.
"Recently secured financing, in conjunction with operational actions the company is taking, is expected to provide sufficient liquidity runway well into 2027," Lucid said on Tuesday.
For the quarter ended June, the company reported a 56% rise in revenue to $405 million, below analysts' average estimate of $416 million, according to data compiled by LSEG.
The company posted an adjusted loss of $2.78 per share, up from a loss of $2.35 per share a year earlier, and higher than the $2.42 per-share loss analysts were expecting.
(Reporting by Abhirup Roy in San Francisco; Additional reporting by Akash Sriram in Bengaluru; Editing by Diti Pujara)
