Lucid Motors Eyes Production Ramp-Up After Q2 Delivery Shortfall

Lucid Motors delivered fewer vehicles than expected in the second quarter of 2025, but analysts at Benchmark maintain a positive outlook on the company’s growth trajectory. This confidence stems from a recent meeting with Lucid’s CFO and strong production figures, signaling potential for scaled operations ahead.

Q2 Production and Delivery Performance

Lucid produced 3,863 vehicles during the second quarter, marking a significant increase of 74.6% from the previous quarter and 83.1% year-over-year. This surge largely resulted from the ramp-up of its Gravity SUV model. A drone flyover of the company’s Casa Grande facility in Arizona revealed approximately 600 Gravity units in parking areas, indicating accelerated manufacturing activity.

Deliveries reached 3,309 units, which fell slightly short of Benchmark’s estimate of 3,694 but still rose 38% compared to the same period last year. The company reaffirmed its annual production target of around 20,000 vehicles. “LCID delivered 3,309 vehicles in 2Q25, slightly below our estimate of 3,694, but up 38% YoY,” the analyst said while noting that the company produced 3,863 vehicles in the quarter and reaffirmed its target of producing approximately 20,000 units.

This performance in the first half totaled 6,675 vehicles produced, combining 2,812 in the first quarter with the second-quarter output. To meet the full-year guidance, Lucid must manufacture an additional 13,325 units in the second half, effectively doubling its production rate.

Analyst Ratings and Stock Implications

Benchmark reiterated its ‘Buy’ rating on Lucid shares with a $5.00 price target following a meeting with CFO Taoufiq Boussaid.

“After meeting with LCID’s CFO Taoufiq Boussaid on Tuesday and reviewing 2Q production and deliveries, we remain confident in the company’s path to scale, underpinned by $5.7B of total liquidity, manufacturing flexibility, and leading technology,” analyst Mickey Legg wrote.

Shares climbed 9% on Tuesday to close at $2.30 before dipping slightly to $2.28 the next day. The firm’s price target suggests a potential upside of 119% from the latest closing price. In contrast, Stifel analysts noted the deliveries missed expectations by 14.1% but kept a ‘Hold’ rating with a $3.00 target, implying 46% upside Stifel’s analysis.

These perspectives highlight differing views on Lucid’s near-term challenges versus long-term potential, with liquidity of $5.7 billion providing a buffer for ongoing investments.

Key Catalysts and Strategic Developments

Benchmark identifies several factors poised to drive Lucid’s progress, including scaling deliveries, navigating tariff impacts, unveiling a midsize EV platform, advancing AI and autonomy features, and pursuing technology licensing deals. The midsize platform will support three upcoming models, expanding the lineup beyond current offerings like the Air sedan and Gravity SUV.

Lucid is also preparing for full-scale production in Saudi Arabia, which could enhance global reach and efficiency. The company recently expanded its workforce, with over 740 open positions in critical areas to support these initiatives.

Building on that, this development raises questions about how Lucid will balance international expansion with domestic operations, especially amid evolving trade policies.

Financial Position and Industry Context

As of the end of March 2025, Lucid reported an accumulated deficit of $13.3 billion in its latest SEC filing Lucid’s SEC filing. Despite this, the firm’s substantial liquidity and manufacturing advancements position it to weather short-term misses.

In the broader EV landscape, Lucid’s focus on premium technology and efficiency aligns with industry trends toward longer-range vehicles and software integration. This approach could yield operational efficiencies for owners, such as reduced charging times and enhanced driving aids, while potentially lowering long-term costs through licensing revenues.

Overall, Lucid’s path forward depends on executing its production goals and capitalizing on technological edges, offering EV enthusiasts reasons to watch closely as the company aims to solidify its market presence.