Lucid Group Reports $366.2 Million Net Loss, 36% Revenue Growth in Q1 2025

Lucid Group, Inc. reported a net loss of $366.2 million for the first quarter of 2025, a significant improvement compared to a net loss of $680.9 million in the same period of the previous year. The company's revenue for the quarter reached $235.0 million, marking a 36% increase from $172.7 million in Q1 2024. This growth was primarily driven by higher delivery volumes of the Lucid Air and increased sales of regulatory credits, which contributed an additional $26.1 million to revenue. However, the average selling price of vehicles decreased, impacting overall revenue performance.

In terms of operational metrics, Lucid's total costs and expenses rose to $927.0 million, up from $902.7 million year-over-year. The cost of revenue increased by 15% to $463.6 million, largely due to higher delivery volumes and increased inventory write-downs, which totaled $151.6 million for the quarter. The gross margin improved to -97.2%, compared to -134.3% in the prior year, reflecting efforts to enhance operational efficiency despite ongoing challenges with inventory management.

Strategically, Lucid has made significant advancements in its manufacturing capabilities. The company completed the semi knocked-down portion of its Advanced Manufacturing Plant-2 in Saudi Arabia in September 2023 and has been ramping up production of its second vehicle, the Lucid Gravity, which began deliveries in December 2024. As of March 31, 2025, Lucid employed approximately 5,000 people, reflecting its ongoing commitment to expanding its workforce to support production and operational needs.

The company has also engaged in substantial financing activities, including the issuance of $1.1 billion in convertible senior notes due in 2030, which will help fund ongoing operations and expansion efforts. Additionally, Lucid entered into agreements with Ayar Third Investment Company for the purchase of redeemable convertible preferred stock, raising $1.0 billion and $750 million in March and August 2024, respectively. These funds are intended to support the company's growth initiatives, including the construction of manufacturing facilities and the development of new vehicle models.

Looking ahead, Lucid anticipates continued challenges due to macroeconomic conditions, including potential impacts from inflation and supply chain disruptions. The company remains focused on optimizing its production capacity and expanding its product lineup, with plans for a midsize platform set to begin production in late 2026. Lucid's management expressed confidence in its ability to navigate these challenges, leveraging its technological advancements and direct-to-consumer sales model to drive future growth.