By Abhirup Roy
SAN FRANCISCO, Aug 4 (Reuters) - U.S. EV maker Lucid said on Tuesday it is aiming to save $1.4 billion in cash this year, primarily through production and inventory cuts, as part of a major business review, after mounting losses in the second quarter.
The cost reduction plan comes weeks after the maker of luxury Air electric sedans and Gravity SUVs denied as "completely false" a report about a potential take-private deal or a Chapter 11 bankruptcy filing.
The projected savings include
an estimated $600 million to $800 million cut in inventory. Lucid said it "deliberately reduced production to better align output with anticipated demand."
The EV maker said the plan also includes cutting capital expenditure by about $500 million and operating expenses by $200 million, with recent job cuts expected to save about $158 million annually.
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 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.
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 Silvio 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 $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)
