Lucid’s Q2 2025 Deliveries Climb 38% but Fall Short of Expectations Amid EV Market Shifts

On July 2, 2025, Lucid Group, Inc. reported a 38% increase in second-quarter vehicle deliveries, reaching 3,309 electric vehicles (EVs), up from 2,394 in Q2 2024. However, the figures missed Wall Street’s expectations of 3,611 units, reflecting challenges in the luxury EV market as economic pressures push consumers toward cheaper hybrids and gas-powered cars, according to Reuters.

Delivery and Production Trends

Lucid’s Q2 performance marks its seventh consecutive quarter of record deliveries, showcasing resilience despite a softening demand for high-end EVs. The company produced 3,863 vehicles at its Casa Grande, Arizona facility, surpassing last year’s 2,110 but falling below analyst estimates of 4,305 units.

This gap highlights ongoing supply chain and production scaling challenges, exacerbated by U.S. President Donald Trump’s tariff policies, which have raised material costs and forced manufacturers to localize supply chains. Lucid’s interim CEO, Marc Winterhoff, noted in May that tariffs could increase overall costs by 8% to 15%, impacting pricing strategies.

Gravity SUV and Future Models

The launch of Lucid’s Gravity SUV, a premium electric SUV with a starting price around $80,000, is pivotal for the company’s growth. Deliveries began in April, and while specific model breakdowns weren’t disclosed, the SUV is expected to drive Lucid toward its 2025 production goal of 20,000 vehicles.

“We’re taking the time to get it right, not just getting it out,” Winterhoff reportedly said during a May earnings call, addressing earlier supply chain bottlenecks that delayed the Gravity’s rollout.

Looking ahead, Lucid plans to introduce a mid-size EV priced at approximately $50,000 by 2026, aiming to compete with Tesla’s Model 3 and Model Y and capture a broader market segment.

Economic and Regulatory Challenges

High interest rates and economic uncertainty have dampened demand for Lucid’s luxury EVs, like the Air sedan and Gravity SUV, which boast ranges up to 520 miles and advanced software. Meanwhile, Tesla reported a 13.5% drop in Q2 deliveries, partly due to consumer backlash against CEO Elon Musk’s political stances and an aging lineup.

Lucid’s U.S.-based production and domestic supply chain partnerships, including with Graphite One and Panasonic, position it to navigate tariff-related disruptions better than competitors reliant on foreign parts. These partnerships align with Inflation Reduction Act incentives, potentially securing tax credits that rivals like Tesla, with China-dependent supply chains, may lose.

Industry Outlook

Lucid’s ability to maintain its 20,000-vehicle production target amid tariff pressures signals confidence in its operational strategy. However, the EV market faces headwinds, with U.S. EV sales growth slowing to 10% from 2024 to 2025, compared to 40% the prior year.

As consumers prioritize affordability, Lucid’s upcoming mid-size platform could be a game-changer, offering a more accessible price point while retaining the brand’s hallmark efficiency and range. For EV enthusiasts, Lucid’s focus on quality and domestic production offers a compelling alternative in a competitive landscape.