Core Viewpoint - The lawsuit filed by Eric Bach against Lucid Motors highlights serious allegations of wrongful termination, discrimination, and retaliation, amid a challenging period for the company as it faces executive turnover and financial strain [1][3]. Group 1: Legal Allegations - Eric Bach has sued Lucid Motors for wrongful termination, claiming discrimination based on his German heritage and retaliation for reporting inappropriate comments made by an HR executive [1][3]. - The lawsuit alleges that Bach was stripped of his responsibilities in early 2025 following an HR investigation into workplace culture, and he was ultimately fired on November 5, 2025 [1][3]. - Lucid Motors has publicly stated that they believe Bach's claims are unfounded and that the facts will support the legitimacy of his termination [2]. Group 2: Company Context - The lawsuit comes at a difficult time for Lucid Motors, which is experiencing significant cash burn as it attempts to increase production of its second vehicle, the Gravity SUV, and develop more affordable mass-market vehicles [3]. - The company has seen a high turnover of executives, with multiple key positions vacated in the past year, including the VP of engineering and the former CEO and CTO [4]. - Prior to the internal investigation, Bach was reportedly in a strong position within the company, overseeing all hardware engineering and being considered for higher roles, including Chief Technology Officer and potentially Chief Executive Officer [5].

Core Viewpoint - The lawsuit filed by Eric Bach against Lucid Motors highlights serious allegations of wrongful termination, discrimination, and retaliation, particularly focusing on a derogatory comment made by a top HR executive and the subsequent treatment of Bach due to his German heritage [1][3]. Group 1: Lawsuit Details - Eric Bach claims he was wrongfully terminated and discriminated against, alleging that he was referred to as a "German Nazi" by a top HR executive [1]. - The lawsuit was filed in the Northern District of California and claims that Bach lost responsibilities in early 2025 due to an HR investigation into workplace culture [1][2]. - Bach asserts that he was targeted because of his German heritage and that he logged an internal complaint against another vice president for similar racist behavior [3]. Group 2: Company Context - The lawsuit comes at a challenging time for Lucid Motors, which is experiencing significant cash burn as it ramps up production of its second vehicle, the Gravity SUV, and develops more affordable mass-market vehicles expected to debut in late 2026 [3]. - Lucid Motors has seen a high turnover of executives, with multiple key positions vacated, including the VP of engineering and the former CEO and CTO, who resigned in February [6]. - The workplace culture investigation that led to Bach's loss of responsibilities was initiated in late 2024 and was reportedly influenced by HR's alleged racist beliefs [9]. Group 3: Bach's Professional Background - Prior to the investigation, Bach was in a strong position within the company, overseeing all hardware engineering, product management, and corporate planning [7]. - Lucid's chairman praised Bach's loyalty and dedication, indicating a desire to continue working with him, while a board member suggested that Bach was a candidate for the Chief Technology Officer position [7][8].

Upgrades - HSBC upgraded Visa (V) to Buy from Hold with a price target of $389, up from $335, citing strong financial performance and growth in services [2] - BofA upgraded Synopsys (SNPS) to Neutral from Underperform with a price target of $500, down from $525, anticipating a positive outlook on its upcoming EPS call [3] - Morgan Stanley upgraded General Motors (GM) to Overweight from Equal Weight with a price target of $90, up from $54, reflecting a change in analyst coverage and a revised outlook for the auto sector [4] - TD Cowen upgraded Ulta Beauty (ULTA) to Buy from Hold with a price target of $725, up from $600, due to expectations of stronger merchandising and global growth under new management [4] - Truist upgraded Five Below (FIVE) to Buy from Hold with a price target of $216, up from $179, highlighting the significance of the company's Q3 report [5] Downgrades - Rosenblatt downgraded Netflix (NFLX) to Neutral from Buy with a price target of $105, down from $152, following a significant acquisition announcement [6] - Morgan Stanley downgraded Rivian (RIVN) to Underweight from Equal Weight with an unchanged price target of $12, expressing caution regarding the electric vehicle market [6] - Morgan Stanley also downgraded Lucid Group (LCID) to Underweight from Equal Weight with a price target of $10, down from $30, reflecting a similar cautious outlook [6] - Morgan Stanley downgraded Tesla (TSLA) to Equal Weight from Overweight with a price target of $425, up from $410, citing high valuation and a cautious industry outlook [6] - Deutsche Bank downgraded 3M (MMM) to Hold from Buy with a price target of $178, down from $199, indicating limited upside potential through 2028 [6] - Benchmark downgraded Marvell (MRVL) to Hold from Buy, removing the price target, due to competitive losses impacting growth projections [6]

Summary of the Auto Industry and Shared Mobility Conference Call Industry Overview - The report focuses on the **North American Auto Industry** and **Shared Mobility** for the year 2026, highlighting a cautious outlook due to an anticipated 'EV Winter' expected to persist through 2026 [1][4][10]. Key Points and Arguments 1. **Sales Forecasts**: - The 2026 US Auto sales forecast is set at **15.9 million** units, reflecting a **1.0% year-over-year decline**. This includes **14.9 million** Internal Combustion Engine (ICE) vehicles (+1.0% y/y) and **1.0 million** Electric Vehicles (EVs) (-20% y/y) [5][11][25]. 2. **Market Dynamics**: - The **2025 US Auto sales** showed unexpected resilience, driven by pre-buying before tariff implementations and the expiration of consumer tax credits for battery electric vehicles (BEVs) [4][10]. - Factors contributing to the cautious outlook include: - Continued lack of affordability due to the expiration of EV tax credits and rising average transaction prices (ATPs) [5][10]. - Tightened credit standards, particularly affecting subprime borrowers, although some modest loosening has been noted recently [5][10]. - Inflationary pressures from tariffs expected to impact consumer prices through the first quarter of 2026 [5][10]. 3. **Consumer Behavior**: - There is pent-up demand in the market, with US Auto SAAR still below pre-COVID levels and an aging car parc averaging nearly **13 years** [5][10]. - Rate cuts may marginally improve affordability for consumers [5][10]. 4. **Scenario Analysis**: - **Bull Case**: Forecasts a SAAR of **17.5 million** (+8.7% y/y) if consumer confidence improves and OEMs focus on core ICE/hybrid offerings [12][25]. - **Bear Case**: Projects a SAAR of **14.5 million** (-9.9% y/y) if credit availability tightens further and consumer affordability worsens [12][25]. 5. **Stock Ratings Changes**: - **General Motors (GM)** upgraded to **Overweight** with a target price of **$90**, citing strong execution and capital allocation strategies [8][48]. - **Tesla (TSLA)** downgraded to **Equal-weight** with a target price of **$425**, reflecting high expectations and near-term headwinds [8][51]. - **Rivian (RIVN)** and **Lucid (LCID)** downgraded to **Underweight** due to negative EV outlooks [8][54]. Additional Insights - The report emphasizes the importance of monitoring policy updates regarding tariffs and consumer health indicators such as unemployment and inflation [12][13]. - The **EV market** is expected to face significant headwinds, with a projected **20% decline in volume** and a penetration rate of **6.5%** for BEVs in 2026 [10][31]. - Companies with diversified sourcing and regional manufacturing strategies are seen as better positioned amid geopolitical tensions and market shifts [47]. Conclusion - The North American auto industry is navigating a complex landscape with mixed signals for 2026. While there are opportunities for companies with strong execution and adaptability, significant challenges remain, particularly in the EV segment. Investors are advised to remain selective and focus on companies that can effectively manage costs and capitalize on market dynamics.

Core Insights - Lucid Group's shares have declined approximately 21.2% since the last earnings report, underperforming the S&P 500 [1] - The upcoming earnings release may determine whether the negative trend continues or if a breakout occurs [1] Financial Performance - Revenue for Q3 2025 was $336.6 million, reflecting a 68% year-over-year increase and exceeding the Zacks Consensus Estimate by 3.38% [10] - Quarterly loss per share was $3.31, which is narrower than the $4.10 loss per share from the previous year but wider than the consensus estimate of $2.32 [10] - Deliveries reached 4,078 vehicles, a 47% increase year-over-year, marking the seventh consecutive quarterly record [10] - Production increased to 3,891 vehicles, up 116% year-over-year, with over 1,000 additional vehicles built for final assembly in Saudi Arabia [10] - GAAP gross margin was approximately -99%, an improvement from -106% in Q3 2024 [10] - Adjusted EBITDA loss was approximately $718 million, compared to a loss of $613 million in Q3 2024 [10] - Free cash flow was negative $955.5 million, wider than the $622.5 million loss in Q3 2024 [10] Costs and Margins - Revenue growth was supported by a favorable mix, but tariffs and input costs negatively impacted margins and Adjusted EBITDA, with tariffs reducing GAAP gross margin by about 13 points [3] - Research and development expenses were $325.3 million, slightly up from $324.3 million in the same quarter of the previous year [4] - Selling, general, and administrative expenses rose to $283 million from $233.5 million year-over-year [4] - Loss from operations totaled $942 million, wider than the $770.5 million loss in the previous year [4] Liquidity - Quarter-end liquidity stood at $4.2 billion, comprising approximately $3.0 billion in cash, cash equivalents, and investments, along with available credit facilities [6] - Following the quarter-end, Lucid and the Public Investment Fund increased the delayed-draw term loan facility to about $2.0 billion, extending the runway into the first half of 2027 [6] Guidance - For 2025, management anticipates year-end production of around 18,000 units, with capital expenditures projected between $1.0 billion and $1.2 billion [7] - Significant delivery growth is expected in Q4 2025, with the Gravity model expected to drive average selling prices and revenue [7] Market Position and Estimates - Since the earnings release, there has been an upward trend in estimates revision, with the consensus estimate shifting by 6.93% [8] - Lucid Group currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [12] Industry Comparison - Rivian Automotive, a competitor in the same industry, reported revenues of $1.56 billion for the quarter ended September 2025, representing a year-over-year increase of 78.3% [13] - Rivian's EPS for the same period was -$0.70, an improvement from -$1.03 a year ago [13] - Rivian is expected to post a loss of $0.68 per share for the current quarter, reflecting a year-over-year change of -30.8% [14]

Core Viewpoint - Lucid Group Inc. is facing significant challenges under the leadership of interim CEO Marc Winterhoff, with the company being considered for the annual worst CEO list due to strategic missteps and poor financial performance [1][3][7]. Financial Performance - Lucid's stock has declined by 53% this year, contrasting with a 16% gain in the S&P 500 [3]. - In the third quarter, Lucid produced 3,891 vehicles and delivered 4,078, resulting in revenue of $336 million, an increase from $200 million year-over-year. However, the company reported a loss of $1.03 billion, up from a loss of $950 million in the same quarter last year [5]. Market Position and Strategy - Lucid has struggled with low vehicle sales, selling only a small number of vehicles despite the expiration of the $7,500 tax credit for electric vehicles, which was expected to boost sales [4]. - The company has priced its vehicles too high for the current market, which is leaning towards more affordable electric vehicles. Management plans to introduce models priced around $50,000 by 2029, but there are doubts about the company's viability by then [8]. Future Outlook - The Chief Financial Officer made a vague statement suggesting that Q4 might be a good quarter, but projections indicate a sales run rate of only 8,500 units, potentially leading to another billion-dollar loss in the fourth quarter [9]. - Lucid has introduced attractive lease offers, but the base price of its Air model starts at $70,900, with higher-end models reaching up to $114,900. The Gravity model is expected to be the best seller in the current quarter, starting at $79,000 and going up to $127,000 [10].

Core Viewpoint - Lucid Group, while recognized for its high-quality electric vehicles, is facing significant stock performance challenges, making Uber Technologies a potentially better investment opportunity [2][3][8]. Group 1: Lucid Group Overview - Lucid Group is a small auto manufacturer focused on luxury electric vehicles, receiving positive reviews in the EV market [1]. - Despite a 68% year-over-year increase in sales to $336.6 million in Q3, Lucid reported a loss exceeding $1 billion during the same period [7]. - The company's stock has decreased approximately 41% over the past year, indicating volatility despite growth in vehicle deliveries and revenue [2][5]. Group 2: Partnership with Uber - Lucid has partnered with Uber to supply at least 20,000 vehicles for Uber's robotaxi fleet over the next six years, which is expected to enhance Lucid's sales and brand visibility [3]. - The partnership may provide substantial benefits to Lucid, but the overall investment outlook for Uber appears more favorable [3][8]. Group 3: Uber Technologies Overview - Uber's stock has increased approximately 22% over the past year, contrasting with Lucid's decline [5]. - Currently, Uber trades at 14 times expected forward earnings, showcasing a strong valuation compared to Lucid [6]. - Uber has demonstrated its ability to generate reliable cash flow and has multiple growth avenues, positioning it as a strong long-term investment [8].

This story was originally published on CFO.com. To receive daily news and insights, subscribe to our free daily CFO.com newsletter. Luxury electric vehicle maker Lucid Motors opened a manufacturing plant in Saudi Arabia two years ago in part to fulfill a major purchase order with the country. Now, the facility may serve another purpose: avoiding American tariffs. Speaking at the UBS Global Industrials and Transportation Conference in Florida on Wednesday, Lucid Motors CFO Taoufiq Boussaid said his Newark ...

Core Insights - Lucid Motors is striving for mass production of electric vehicles (EVs) but faces significant cost challenges [1][5] - The automotive sector is highly competitive, with established players also focusing on EV technology, making it difficult for new entrants like Lucid to gain market share [2][4] Company Performance - As of Q3 2025, Lucid produced 3,891 EVs, representing a 116% year-over-year increase, but this is less than 1% of Tesla's production of 447,450 vehicles [6] - Lucid reported a loss of $3.31 per share in Q3 2025 and a total loss of $8.50 per share for the first nine months of the year, indicating significant financial strain [8] - Revenue from car sales in Q3 was approximately $337 million, while production costs were nearly $672 million, highlighting a substantial loss per vehicle sold [8][9] Financial Health - Research and development costs in Q3 totaled $325 million, nearly matching the revenue from car sales, which raises concerns about the sustainability of its growth strategy [9] - At the end of Q3 2025, Lucid had around $1.6 billion in cash and $700 million in short-term investments, suggesting a potential need for additional capital to support expansion [10] - The company may need to raise funds through debt or equity sales, both of which carry risks such as increased interest costs and shareholder dilution [12] Market Position - The competitive landscape for EVs has intensified since Tesla's entry, making it challenging for Lucid to establish itself in the market [13] - Without evidence of achieving gross profit or sustainable profitability, the investment outlook for Lucid remains uncertain [13]

Group 1 - The presentation at the UBS Industrials Conference features Lucid, with CFO Taoufiq Boussaid in attendance [1] - Attendees have the opportunity to test drive Lucid vehicles, including the Air and the new Gravity model, highlighting the quality of the ride [2]