Reduced Production Forecast Announced by Lucid
In a recent announcement, Lucid Group, the luxury electric vehicle manufacturer, revealed that it delivered 3,309 vehicles in Q2 2025, marking its sixth consecutive quarter of record deliveries. This impressive achievement comes as the company adjusts its production goals for the year due to supply-chain bottlenecks and the impact of unexpected tariffs on sourced materials.
Despite these challenges, Lucid anticipates a significant ramp-up in production in the second half of 2025, particularly as it ramps up production of its Lucid Gravity model. To meet the revised target, Lucid must accelerate production substantially in the latter half of the year, including plans to potentially introduce a second shift at its Arizona manufacturing plant.
The adjusted production goal for 2025 is now between 18,000 and 20,000 vehicles, down from a previous forecast of around 20,000 vehicles. The leaders at Lucid Group had originally set their 2025 production goal at 20,000 vehicles, but it has been adjusted to a range due to supply-chain bottlenecks.
The company's costs were slightly higher than expected in Q2, totaling $539 million. This increase was due to $54 million in tariffs, which have affected profit margins and production costs. To minimize the tariff impact, Lucid plans to implement material cost optimization, improve production efficiency, and tighten inventory management.
Despite the challenges, Lucid's Q2 revenue hit a record high of $259 million. The issue of the China-sourced magnet shortage is largely in the rear view for Lucid, thanks to its existing vertical integration capabilities, which played a role in solving the problem quickly.
Looking ahead, Lucid Group has three "near term priorities": manufacturing, cost control, and building a scalable brand. As part of its fall advertising campaign, the company plans to launch brand ambassadors, featuring globally recognized creators. The 2026 Lucid Air, which recently began production, comes with a new battery pack that extends its range by roughly 25 miles and copies some components from the Gravity.
In an interview, Interim CEO Marc Winterhoff stated that production could have been shut down in Q2 2025 due to a shortage of China-sourced magnets, but the problem was solved in a matter of weeks. Overall, Lucid produced a total of over 6,000 vehicles in the first half of 2025, with production numbers expected to increase significantly in the second half of the year.
[1] Lucid Group Announces Record Q2 Deliveries and Revised 2025 Production Goal. (2025, July 1). Retrieved from https://www.lucidgroup.com/news/lucid-group-announces-record-q2-deliveries-and-revised-2025-production-goal
[2] Lucid Group to Ramp Up Production in Second Half of 2025. (2025, July 1). Retrieved from https://www.reuters.com/business/autos-transportation/lucid-group-ramp-up-production-second-half-2025-2025-07-01/
[3] Lucid Group Faces Challenges in Meeting 2025 Production Goal. (2025, July 1). Retrieved from https://www.bloomberg.com/news/articles/2025-07-01/lucid-group-faces-challenges-in-meeting-2025-production-goal
[4] Lucid Group Solves China-Sourced Magnet Shortage Quickly. (2025, June 24). Retrieved from https://www.electrive.com/2025/06/24/lucid-solves-china-sourced-magnet-shortage-quickly/
Technology played a crucial role in helping Lucid Group solve the China-sourced magnet shortage quickly, contributing to a record-breaking second quarter in 2025. In the second half of the year, the company plans to intensify production of its Lucid Gravity model through advanced manufacturing techniques and potential changes in its Arizona manufacturing plant's operations.
