LCID Stock In Spotlight Today Amid Leadership Transition – Q2 Deliveries Come In Weaker Than Expected

• The company also appointed Raja Ramana Macha as CTO, Billy Hayes as chief customer officer, Hugo Martinho as chief transformation officer, and Kay Stepper as President of Lucid Technologies.
• Lucid delivered 3,953 vehicles and produced 4,774 during the quarter ended June 30, below Wall Street’s estimates.
• Last month, the EV maker trimmed 18% of its U.S. workforce, after a 12% cut in February.

Lucid Group (LCID) was in the limelight on Thursday after the EV maker announced a major leadership overhaul amid weaker-than-expected second-quarter vehicle deliveries.

LCID shares traded over 7% lower at the time of writing.

Industry Veteran Alexander De Bock Appointed New CFO

On Thursday, Lucid Group announced the appointment of Alexander De Bock as its new chief financial officer, replacing Taoufiq Boussaid, who will remain through the company’s second-quarter earnings release next month. De Bock, an industry veteran, previously served as the CFO of TI Automotive, a global supplier of thermal management systems.

CEO Silvio Napoli, who took over the role recently, also announced a streamlined leadership structure that halves the number of executives reporting directly to him. The company appointed Raja Ramana Macha as chief technology officer, Billy Hayes as chief customer officer, Hugo Martinho as chief transformation officer, and Kay Stepper as President of Lucid Technologies.

Lucid said the changes are made to improve overall competitiveness. 

Meanwhile, the luxury electric vehicle maker delivered 3,953 vehicles and produced 4,774 during the quarter ended June 30. Wall Street had expected deliveries of about 4,618 vehicles and production of roughly 5,280 vehicles.

LCID’s Turnaround Efforts Continue

The executive shake-up follows Lucid’s restructuring program last month, which included cutting about 18% of its U.S. workforce and removing the second production shift at its Arizona factory. The company expects the plan to generate about $158 million in annualized cost savings, although it anticipates roughly $32 million in one-time restructuring charges.

Lucid had also announced a 12% reduction in its U.S. workforce in February.

Earlier this year, Lucid suspended its full-year outlook after supplier issues disrupted deliveries of its Gravity SUV.

The company is betting on the Gravity SUV, which is expected to make up a large share of Uber’s robotaxi fleet. Lucid will supply its Gravity SUV, and Uber will operate the vehicles through its ride-hailing platform.

LCID Traders Say Buy The Dip

Despite the sharp slide, retail sentiment surrounding LCID on Stocktwits remained ‘extremely bullish,’ amid ‘high’ message volumes.

One user called the dip a “buying opportunity.” 

LCID shares have plummeted 45% so far this year.

Also read: Tesla Q2 Deliveries Blow Past Wall Street Estimates On China, Europe Boost

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