Lucid’s CEO says ‘tough medicine’ needed to fix EV maker

Lucid Group Inc. is implementing a sweeping operational reset to slash $1.4 billion in cash burn this year, as new CEO Silvio Napoli tightens financial and operational discipline after quarterly results missed Wall Street estimates. The cost-cutting plan includes slashing $500 million in capital expenditures and trimming up to $800 million from inventory, while the company continues to hemorrhage cash despite revenue slightly beating expectations. Napoli described the measures as “tough medicine” required to curb losses and hit key milestones, admitting that Lucid has underdelivered on execution for far too long. Full-year EV production and deliveries will fall short of current Wall Street projections, he confirmed. Shares of Lucid slid 7.5% in premarket trading following the announcement, extending a 26% year-to-date decline. Napoli’s priorities now center on finalizing a robotaxi partnership with Uber Technologies Inc., ramping up production at the Saudi factory, and launching the first model based on the company’s new midsize EV platform. The push for efficiency follows an operational review, workforce reductions, and production adjustments in recent months. Lucid reported an adjusted loss before interest, taxes, depreciation, and amortization of $901 million for the quarter, with an adjusted per-share loss of $2.78—both worse than analyst estimates. Revenue reached $405 million, marginally exceeding expectations. The company suspended its 2026 production forecast earlier this year, which had targeted up to 27,000 vehicles. Despite the financial strain, Lucid retains strong backing from its largest shareholder, the Saudi Public Investment Fund, which has poured over $9 billion into the company. The automaker also secured a confidence boost after Saudi Prince Alwaleed bin Talal Al Saud acquired a 5% stake. Napoli emphasized a commitment to avoiding past mistakes, stating, “We will not repeat the mistakes of the past by bringing a product to market before it is ready,” in reference to the upcoming midsize EV. The company’s restructuring efforts with AlixPartners are set to conclude by the end of August. Lucid has vehemently denied reports suggesting it was considering bankruptcy, calling such claims “completely false” and affirming it has sufficient liquidity to last into next year, with $3 billion in total liquidity reported at the end of the second quarter.