LCID Tumbles On Suspended Outlook And Elevated Inventory Alarm

• The CFO called the decision a governance matter in light of the appointment of Silvio Napoli as the company’s new and permanent CEO last month. 
• The company ended the quarter with about $3.2 billion in liquidity, which it expects to suffice into the second half of 2027.
• The company also noted that it ended the quarter with excess inventory of about $1.47 billion, compared to $1.1 billion at the end of the fourth quarter.

Shares of Lucid Group fell 5% after hours on Tuesday after the company reported a widening loss for the first quarter and suspended its full-year production guidance.

Lucid’s CFO, Taoufiq Boussaid, said on the company’s earnings call that Lucid is now suspending its previous 2026 production guidance of 25,000 to 27,000 vehicles. The CFO called the decision a governance matter in light of the appointment of Silvio Napoli as the company’s new and permanent CEO last month.

“With Silvio now on board and conducting his review of the business, we are suspending our prior guidance and we'll provide a full updated outlook at our Q2 earnings call. I want to be clear, this is a governance decision,” Boussaid said.

LCID’s Q1 Print

Lucid’s loss per share for the quarter came in at $2.82, compared to a loss of $2.04 in the corresponding quarter of 2025 and above an analyst estimate of a loss of $2.3. Revenue for the quarter came in at $282.5 million, below a Wall Street estimate of $358.51 million, according to data from Fiscal AI.

The company ended the quarter with about $3.2 billion in liquidity, which it expects to suffice into the second half of 2027.

Demand And Inventory

The CFO further added that near-term demand conditions remain uneven, and the firm is managing production cadence accordingly.

“We continue to work to closely align production with demand to avoid excess inventory. We are not constrained on capacity. We are constrained by our own discipline not to build inventory ahead of demand,” he said, while adding that Lucid has launched a company-wide program to reduce costs and concentrate capital on the highest return opportunities.

Supplier Issues

Earlier this month, the company reported that it produced 5,500 vehicles but delivered only 3,093 vehicles in the first quarter, owing to a 29-day disruption in the deliveries of its Gravity SUV due to a supplier quality issue with second-row seats, highlighting production and quality challenges. Lucid said on Tuesday that the issue is now resolved, and it has taken action to address the root cause. Delivery momentum subsequently escalated in March and is expected to normalize through the year, the company said

The company also noted that it ended the quarter with excess inventory of about $1.47 billion, compared to $1.1 billion at the end of the fourth quarter. The company subsequently recorded $228.3 million in “Inventory and firm purchase commitments write-downs” during the quarter.

Lucid’s Upcoming Midsize Platform

Lucid is now looking to scale deliveries and the total addressable market with its midsize platform. Production of the first vehicle based on the platform is expected to ramp through 2027.

How Did LCID Retail Traders React?

On Stocktwits, retail sentiment around LCID stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.

LCID stock has fallen 74% over the past 12 months.

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