Financial Performance and Profitability
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Lucid reported Q2 2025 revenue of $259.4 million, a 29% increase year-over-year from approximately $200.6 million in Q2 2024.
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The company posted a GAAP net loss of $855 million for Q2 2025, wider than the $790 million loss in Q2 2024, with an adjusted EBITDA loss of $632 million, which improved by 12% compared to the prior year.
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Gross margin for the quarter was deeply negative at -105%, impacted significantly by tariffs that reduced margin by approximately 21 percentage points.
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Research and Development (R&D) expenditure for the quarter totaled around $274 million, reflecting investment in new platform development and powertrain technologies.
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Selling, General & Administrative (SG&A) costs stood at about $257 million in Q2 2025.
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Lucid ended the quarter with approximately $4.86 billion in total liquidity, including about $3.63 billion in cash, cash equivalents, and investments.
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The company revised its 2025 production guidance range to 18,000 to 20,000 vehicles, reduced from a prior estimate of 20,000 units, citing ongoing market and supply chain volatility.
Vehicle Sales and Production
| Model | Q2 2025 Units | Q2 YoY % | Notes |
|---|---|---|---|
| Total Deliveries | 3,309 | +38% | Sixth consecutive record delivery quarter |
| Vehicle Production | 3,863 | +83% | Increased production supports delivery growth |
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Lucid maintained strong momentum with 3,309 vehicle deliveries in Q2, an increase of 38% year over year.
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Production rose 83% year over year to 3,863 vehicles, reflecting improvements in supply chain and manufacturing efficiency.
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The company is scaling production of the Lucid Gravity SUV, expected to drive growth in the latter half of 2025.
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Lucid announced strategic partnerships including a robotaxi program with Uber, which plans to deploy a minimum of 20,000 Lucid Gravity vehicles equipped with Level 4 autonomy technology.
Regional and Global Sales Performance
| Region | Highlights |
|---|---|
| United States | Core market with expanding vehicle deliveries and retail presence |
| Europe | Growing retail footprint and brand awareness |
| Asia (China) | Challenges persist in joint venture operations, impacting losses |
| Global | Continued focus on international expansion and technology partnerships |
Profitability and Cost Factors
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Negative gross margin largely driven by tariffs and supply chain cost pressures, partially offset by efforts to improve average transaction prices and operational efficiencies.
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Cost discipline is ongoing with targeted investments in product development and market expansion.
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R&D spend increased as the company invests in the midsize vehicle platform and powertrain advancements.
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Adjusted EBITDA loss improved by 12% relative to the prior-year quarter, showing progress in managing expenses.
Debt and Liquidity
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Lucid’s strong liquidity position at $4.86 billion supports current operations through at least the second half of 2026.
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Capital expenditure guidance for 2025 has been revised downward to $1.1-$1.2 billion, compared to a previous outlook of $1.4 billion, reflecting disciplined spending.
Best Selling Models: Overview and Highlights
| Model | Highlights |
|---|---|
| Lucid Air | Flagship luxury sedan with industry-leading range and technology |
| Lucid Gravity | Newly scaling luxury electric SUV expected to boost volumes in H2 2025 |
| Future Models | Planned midsize platform and additional models launching 2026 and beyond |
Weakest Performers and Segment Challenges
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Negative gross margins and heavy losses reflect ongoing tariff impacts and operational scaling costs.
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The overall EV market slowdown and supply chain volatility continue to impact production and delivery targets.
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Joint venture losses and operational complexities in China remain a challenge for global expansion.
Key Financial and Operational Metrics
| Metric | Q2 2025 | Change vs. Q2 2024 | Notes |
|---|---|---|---|
| Revenue | $259.4 million | +29% | Continued growth despite earnings miss |
| Net Loss (GAAP) | $855 million | Worsened | Includes restructuring and tariff effects |
| Adjusted EBITDA Loss | $632 million | Improved by 12% | Cost discipline benefits |
| Gross Margin | -105% | Declined due to tariffs | 21 percentage point margin hit from tariffs |
| Vehicle Deliveries | 3,309 units | +38% | Sixth consecutive quarter of record deliveries |
| Vehicle Production | 3,863 units | +83% | Leading delivery growth |
| Cash and Liquidity | $4.86 billion | Stable | Adequate runway through mid-late 2026 |
Industry Outlook and Strategic Focus
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Lucid is prioritizing margin improvement through material cost optimization, production efficiency, and inventory management.
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The ramp-up of Lucid Gravity production and launch of midsize platform models expected to drive volume and revenue growth in 2026 and beyond.
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Strategic alliances, including robotaxi services with Uber, create new revenue streams and broaden market opportunities.
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The company remains cautious amid macroeconomic uncertainty but optimistic about the long-term EV transition and premium segment positioning.
Summary
In Q2 2025, Lucid achieved notable volume growth with deliveries up 38% and production rising 83% year over year, marking the sixth straight quarter of record deliveries. Despite this operational success, significant financial challenges persist due to negative gross margins heavily impacted by tariffs and supply chain costs, resulting in a sizeable net loss. The company maintains a robust liquidity position, enabling continued investments in new models and technological advancements. Lucid’s strategic focus includes improving margins, scaling production of the Lucid Gravity SUV, and leveraging partnerships to expand its footprint in the evolving luxury EV market.
Sources
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Lucid Group Q2 2025 Earnings Call Transcript
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Electrive.com: Lucid Adjusts 2025 Production Outlook Amid Record Q2 Deliveries
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PR Newswire: Lucid Announces Second Quarter 2025 Financial Results
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CNBC: Lucid Q2 2025 Results Overview
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MLQ.ai: Lucid Reports Q2 2025 Earnings and Expands Robotaxi Partnership
