Lucid misses Wall Street’s earnings expectations, expands loan from Saudi Arabia fund
Lucid Group missed Wall Street third-quarter targets as it pursues an operational reset to cut costs and narrow losses, while securing a $1.75 billion loan increase from its Saudi Arabia-based Public Investment Fund to bolster liquidity. Despite revenue and profit misses, adjusted EBITDA losses were better than expected, and net loss narrowed from the prior year as leadership pushes a turnaround that delays the midsize vehicle and prioritizes disciplined execution. The company cites progress from a restructuring plan, including $1.4 billion in anticipated cash-flow improvements and investments in a robotaxi program with Uber and Nuro, a Saudi plant, and the midsize car. Additional funding is expected to support operations and key investments through late 2027, with a midterm plan and targets due early next year. Forward momentum hinges on delivering profitable growth while completing the turnaround milestones.
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Lucid reported a third-quarter revenue of $336.6 million and a net loss of $830.9 million, with an adjusted EBITDA loss of $717.7 million, reflecting ongoing restructuring and cost controls after leadership changes in June.
The company disclosed a $1.75 billion increase to a delayed-draw term loan from the Public Investment Fund, its largest shareholder, boosting total liquidity to $3.75 billion from $2.0 billion at the end of Q3.
CEO Silvio Napoli emphasized the transformation is gaining traction, focusing on cost discipline, prioritizing core initiatives, and accelerating profitable long-term growth while continuing investments in key programs.
A restructuring plan includes delaying the midsize vehicle into the second half of next year and pursuing a robotaxi collaboration with Uber and Nuro, alongside a new factory under construction in Saudi Arabia.
Lucid reiterated that the PIF funding will provide financial flexibility to fund operations and critical investments through the fourth quarter of 2027, including bringing the midsize vehicle to production.
Management indicated it will share a midterm plan and targets early next year, noting that previous guidance was suspended in May due to leadership changes and the turnaround’s development timeline.