Lucid Stock On Track To Hit Worst Day In A Year As Recall Adds To Delivery Woes

• Lucid is recalling 3,627 vehicles in the U.S. due to a drivetrain defect flagged by regulators.
• Q1 deliveries fell sharply, missing analyst expectations. 
• Lucid Group shares are currently down about 73% from its 52-week high of $33.70.

Lucid Group Inc. (LCID) shares are on track to hit their worst day of the year in premarket trading on Friday. This comes after the automaker faces a fresh recall for some 2024-2026 Air vehicles fitted with Pure Rear-Wheel Drive, adding to weak investor sentiment around the luxury EV maker’s execution and demand outlook. 

The company is recalling thousands of Air model vehicles in the U.S. after the regulator warned that a potential half-shaft disconnection could lead to a sudden loss of power and increase the risk of crashes. This marks a setback for Lucid, which is already dealing with weak deliveries in the first quarter and recurring quality issues.

A Growing List Of Recalls For Lucid 

On Friday, Lucid said it would recall 3,627 Air model vehicles. This is the third recall this year for the company, due to manufacturing issues. 

Earlier this year, the company decided to recall 4476 Gravity model vehicles due to insufficiently welded seat belt anchor brackets. The The National Highway Traffic Safety Administration (NHTSA) notice stated that “The lap belt anchor brackets on the second row seats may have insufficient welds, which can cause bracket failure.”

In another instance, the company recalled certain 2022-2026 Air vehicles equipped with an AD02 package and a software version from 2.8.0 through 2.8.16 for a rear-view camera malfunction. The number of vehicles in this recall totaled 10816. “The rear camera of these vehicles may not display when the vehicles are placed in reverse,” noted NHTSA.

Q1 Delivery Miss Adds To Pressure

Earlier this month, the EV automaker reported disappointing first-quarter deliveries. The company delivered only 3,093 vehicles, down 42% from the fourth quarter of 2025 and remained flat compared to a year ago. The company blamed the supplier for having made an “unapproved change” to the seat belt anchor welds without the company's knowledge.

Lucid’s Aggressive Cost Reduction Targets

Lucid’s Cost Engineering director said that its COSMOS, a midsize SUV, is equipped with about half the wire count compared to its other Chinese competitors. In addition, the company said it has cut wire-harness costs to 40% of what it spent on its existing models, the Lucid Air and Lucid Gravity.

Lucid’s interim CEO, on March 12, said that Cosmo’s bill of materials is less than a comparable midsize CUV from a Chinese competitor.

Retail Traders’ Sentiment Remains Weak 

As per Stocktwits data, the retail sentiment surrounding the stock has remained ‘Bearish’, while message volumes are ‘Normal’ 

Lucid shares are currently down about 73% from its 52-week high of $33.70. And year-to-date, the stock has slumped by about 17%.

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