Air turbulence has struck Lucid Motors as Peter Rawlinson, company CEO and former Tesla engineer, leaves his post to become a strategic advisor. This comes after the company posted a net loss of $397 million in the fourth quarter of 2024 and $2.7 billion for the full year.
The announcement, made after the close of trading yesterday, February 25, took investors by surprise. Rawlinson did not take part in the earnings call. Marc Winterhoff will serve as interim CEO while Lucid finds a successor.
Lucid confirmed a 9-percent rise in its share price after the announcement, a sign that investors view the change at the head of the company positively.
Heavy losses despite improved results
As high as that Q4 loss of $397 million USD is, it represents an improvement on the $654 million USD lost a year earlier. Sales rose by 49 percent to $234 million USD over the period.
Lucid delivered 3,099 vehicles in the fourth quarter (+79 percent year-on-year) of 2024. Over the full year, the company delivered 10,241 vehicles in the U.S., Canada, Europe and the Middle East.
However, analysts from the CFRA Research firm remain skeptical about Lucid's ability to achieve profitability:
“Even if volumes double by 2025, we doubt Lucid can achieve profitability. The company is struggling to meet its forecasts and is facing declining demand for EVs in the U.S.”
- Analysis of CFRA Research
Gravity SUV a hope for Lucid?
The launch of the Gravity in December of 2024 represents a key milestone for Lucid. Marc Winterhoff has announced a more aggressive marketing shift in 2025 to boost sales.
Lucid plans to produce 20,000 vehicles by 2025. The first Gravity version on the market is the Grand Touring, which starts at $113,500. More affordable versions are expected by the end of 2025.
Winterhoff also said that orders were exceeding expectations, without giving precise figures.
Lucid expands its offer and presence
Lucid plans to introduce new features to appeal to luxury EV buyers, such as a hands-free driving assistant in 2025. As well, a mid-size SUV is planned for 2026.
Lucid is also remaining committed to its direct sales model, controlling the entire customer experience. At the same time, the company intends to expand its network of showrooms and service centers.
A new CFO
Another notable change is the arrival of Taoufiq Boussaid as CFO. He previously held that position at Bekaert, a company specializing in steel and coating technologies.
What does the future hold for Lucid?
With a slowing electricity market to deal with, massive financial losses and a major change in management, Lucid might be playing its future in 2025. Gravity could be its salvation, but the company will have to convince investors and consumers that it can hold its own against Tesla and traditional manufacturers.