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Lucid Motors Is Laying Off 12% of Its Staff. Is There Any Hope for LCID Stock Here?

by Ruchi Gupta
February 26, 2026
in Finance
Reading Time: 3 mins read
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Lucid Group (LCID) is a cutting-edge American firm specializing in luxurious electrical autos (EVs). It designs, engineers, and manufactures high-performance EVs just like the Lucid Air sedan and Gravity SUV, together with superior powertrains and battery techniques.

Based in 2007 as Atieva, it was renamed Lucid Motors in 2016. The corporate is headquartered in Newark, California, with key manufacturing in Casa Grande, Arizona. Lucid operates primarily in the USA and Saudi Arabia whereas supplying tech to companions like Aston Martin (ARGGY) globally.

Lucid Group’s inventory has confronted vital downward stress not too long ago. Over the previous 5 days, it declined about 5% whereas slipping 15% over a month and 26% in 1 / 4. The inventory has crashed over 53% up to now six months and near 66% within the 52-week interval because it trades at its 52-week low.

Compared, LCID has underperformed the Nasdaq Composite ($NASX) sharply throughout intervals. Whereas Nasdaq dipped noticeably with a 4% slip in a month, LCID’s losses are a lot steeper, highlighting sector-specific EV challenges versus broader tech resilience.

www.barchart.com

Lucid Group reported Q3 2025 on Nov. 5, 2025, with a income of $336.6 million, up 68% year-over-year (YoY) however lacking analyst estimates of $347-$379 million by 3-11%. Adjusted EPS got here in at -$2.65, worse than the anticipated -$2.19 to -$2.27 loss, marking a 17-21% miss regardless of bettering from final yr’s -$2.80.

Key financials present gross margins bettering amid price controls, although adjusted EBITDA was -$717.7 million. Money reserves stay bolstered by Saudi PIF funding, however free money move stayed deeply destructive with excessive working losses of round $1 billion for the quarter. Manufacturing hit file ranges, with 4,078 deliveries, signaling operational ramp-up regardless of stock buildup.

For This autumn 2025, which is ready to be introduced tomorrow, Feb. 24, 2026. Lucid has launched its This autumn manufacturing and deliveries report. Lucid produced 8,412 autos (+116% vs. Q3) and delivered 5,345 (+31% vs. Q3), with full-year 2025 totals at 18,378 produced (+104% YoY) and 15,841 delivered (+55% YoY).

Lucid Group is shedding 12% of its workforce to spice up profitability. The cuts goal non-manufacturing roles, sparing manufacturing unit, logistics, and high quality groups, at the same time as manufacturing ramps up for the Gravity SUV and a brand new $50,000 mid-sized EV launches later this yr.

An inside memo, seen by TechCrunch, states the transfer will “enhance operational effectiveness and optimize sources” on the trail to income. It may have an effect on over 800 staff. Laid-off staff will get severance, bonuses, well being advantages, and transition help, whereas separation prices weren’t shared.

Lucid Group’s current challenges—missed Q3 earnings, 12% workforce cuts, and a 70% YTD inventory drop—sign powerful occasions within the EV sector, with persistent money burn and profitability delays regardless of manufacturing beneficial properties like This autumn’s 116% surge.

But, analysts keep a “Maintain” consensus with a $16.80 imply worth goal, implying a 73% upside from the present market worth, pushed by the Gravity SUV ramp-up and the upcoming $50,000 EV, amid Saudi backing.

www.barchart.com
www.barchart.com

On the date of publication, Ruchi Gupta didn’t have (both straight or not directly) positions in any of the securities talked about on this article. All data and information on this article is solely for informational functions. This text was initially revealed on Barchart.com



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