Lucid Group experienced a promising end to 2025, doubling its electric vehicle (EV) production and achieving a remarkable 55% increase in sales. However, the company faced challenges in the first quarter of 2026.
In its latest report, Lucid disclosed that it sold 3,093 vehicles during the first quarter, marking a 42% decline from the previous quarter and a slight decrease of 0.5% compared to the same period last year. Despite this, the company produced around 5,500 vehicles in total.
The decline in sales was attributed not to a lack of demand, but rather to a quality issue with a supplier related to the second-row seats. This disruption delayed deliveries of the Lucid Gravity SUV for a period of 29 days.
Additionally, the supplier issue led to a recall of more than 4,000 Gravity SUVs. Lucid informed the National Highway Traffic Safety Administration that some seat belt anchors were improperly welded, necessitating immediate action.
Lucid spokesperson Nick Twork confirmed that the sales drop was directly linked to these supplier challenges. He noted that an unapproved change from the supplier prompted a halt in Gravity sales for most of February, allowing the company to ensure the quality of its vehicles before resuming sales. Twork also highlighted Lucid's recent successes, stating, "following eight record quarters, we showed strong results in both January and March which very nearly achieved year-over-year growth on their own."
Lucid reassured stakeholders that the supplier issue has been resolved and expressed confidence that it would not hinder their production goals.
The company reiterated its production guidance for 2026, aiming to manufacture between 25,000 and 27,000 vehicles this year, a significant increase from the 18,378 EVs produced in 2025, potentially representing a growth of up to 47%.
As Lucid prepares to launch its first vehicle on a new, cost-effective platform designed for the mass market, the anticipated model is expected to be priced around $50,000. This strategic move positions Lucid to compete directly with rivals like the Rivian R2 SUV, Tesla Model Y, Tesla Model 3, and Chevrolet Equinox EV.
