Lucid (US:LCID)2026-02-24 23:32Financial Data and Key Metrics Changes - In Q4 2025, production reached 7,874 vehicles, up 133% year-over-year, while full-year production totaled 70,840 vehicles, up 98% year-over-year [25][26] - Q4 revenue was $522.7 million, up 55% sequentially and 123% year-over-year, with full-year revenue reaching $1.35 billion, up 68% year-over-year [27][28] - Gross margin improved approximately 18 points sequentially in Q4, driven by higher production volume and improved fixed cost absorption [28][29] Business Line Data and Key Metrics Changes - The Lucid Gravity represented the majority of deliveries in Q4, contributing to a significant increase in average selling price (ASP) for the quarter [14][27] - The company shifted to a more targeted build-to-stock approach to meet customer expectations for faster delivery of specific trims and configurations [26] Market Data and Key Metrics Changes - In the U.S., the Lucid Air was the number one selling EV in its segment and third in the large luxury car segment overall in 2025 [14][11] - Q4 deliveries increased 72.5% year-over-year and 31.1% from Q3, while full-year deliveries rose 54.7% compared to 2024 [14][26] Company Strategy and Development Direction - The company aims to leverage the ramp-up of the Gravity and the introduction of midsize vehicles to expand its total addressable market (TAM) from $40 billion to $350 billion by 2030, and potentially to $700 billion by 2035 with the robotaxi market [11][8] - A focus on operational efficiency and cost management is emphasized, with a 12% reduction in the U.S. workforce expected to yield up to $500 million in cost savings over three years [20][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the macroeconomic challenges faced in 2025, including tariffs and supply chain disruptions, but expressed confidence in the company's ability to navigate these issues and grow production and deliveries in 2026 [4][19] - The company remains committed to the EV market, emphasizing that EVs are the future and that they will continue to build vehicles that outperform competitors [22][24] Other Important Information - The construction of the M2 factory in Saudi Arabia is ahead of schedule, with equipment installation progressing as planned [12] - The company has launched a certified pre-owned program, Lucid Recharged, to enhance customer ownership experience [18] Q&A Session Summary Question: Will Lucid earn ongoing revenue through its partnership with Uber and Nuro? - The company clarified that the current arrangement involves selling vehicles to Uber, with no further licensing or subscription revenues expected at this time [38] Question: When does the board plan to appoint a permanent CEO? - Management indicated that this question is for the board, with no further updates available [39] Question: What is the clearest path to positive gross margin, and when do you realistically expect to get there? - Management highlighted that improvements in gross margin are expected in 2026 through better cost management and operational efficiencies [40] Question: What is Lucid's plan to grab market share with Tesla scaling back models? - The company acknowledged Tesla's role in the EV market and noted an uptick in inquiries from Tesla owners, indicating plans to accelerate efforts to capture this market [42] Question: What milestones are left before the midsize platform production starts? - Management mentioned that they are in the final stretch of product development and installation of equipment in the Saudi plant [45] Question: Are there any constraints with DRAM memory in production? - Currently, there are no significant constraints, although the situation is being monitored closely [48] Question: How should we think about the unit mix for production guidance this year? - The majority of production and deliveries in 2026 will come from the Gravity, with minimal contributions expected from midsize vehicles and robotaxis [52]