Lucid (LCID) will adjust EV production with bloated Q1 inventory

Lucid Group (LCID) said it will adjust EV production after a supplier issue “significantly affected” Gravity deliveries in the first quarter.

Lucid adjusts EV production after Q1 supplier issue

After reporting first-quarter earnings after the market closed on Tuesday, Lucid said the timing of February deliveries was affected by a supplier issue that the company has since resolved.

Lucid produced 5,500 vehicles, up 149% from Q1 2025, but only delivered 3,093. The seat supplier issue “significantly affected Lucid Gravity deliveries in February,” the company said in a statement.

After addressing the issue, Lucid said sales were up 14% in March compared to the year prior. “A supplier issue resolved during the quarter had an impact, but January and March deliveries were ahead of the same periods in the prior year,” Lucid’s interim CEO Marc Winterhoff said.

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Lucid reported that total orders in North America rose 144% in March 2026 from February. Winterhoff added that Lucid is “aligning production and delivery with customer demand,” but didn’t offer any specifics.

Lucid previously said it expects to produce between 25,000 and 27,000 EVs in 2026, a 40% to 50% increase from last year.

CFO Taoufiq Boussaid explained that Lucid ended Q1 with “elevated inventory” that the company plans to convert to revenue and cash as deliveries normalize.

Lucid reported first-quarter revenue of $282.5 million, up 20% from Q1 2025 but widely missed Wall St expectations. The company also posted an adjusted loss per share that was higher than expected, at $2.82.

The EV maker ended the first quarter with about $3.2 billion in total liquidity. Including the $1 billion capital raise from PIF and Uber, plus another $500 million increase of the DDTL facility with PIF, Lucid said it would have ended the quarter with $4.7 in total liquidity.

According to Lucid, it’s enough to fund operations into the second half of 2027 as it ramps up Gravity production and launches its midsize platform later this year.

The midsize platform will enable Lucid to tap into a new market of buyers with pricing expected to start at under $50,000.

Lucid’s stock price fell by over 6% in after-market trading on Tuesday following the Q1 2026 earnings release.