Lucid (LCID) inventory falls as CEO steps down, however there’s excellent news

Lucid (LCID) CEO Peter Rawlinson is passing the baton simply because the EV maker enters a essential development section. After over a decade on the helm, Rawlinson mentioned it’s the appropriate time to step apart. Following the sudden announcement, Lucid’s inventory fell over 12% on Wednesday. Regardless of this, Lucid expects 2025 will nonetheless be one among its largest thus far.

Rawlinson will change into a strategic technical advisor to the chairman of the board with Marc Winteroff, Lucid’s chief working officer, serving as interim CEO.

“Now that now we have efficiently launched the Lucid Gravity, I’ve determined it’s lastly the appropriate time for me to step other than my roles at Lucid,” Rawlinson, who led the corporate for the previous 12 years, mentioned in an announcement on Tuesday.

The sudden departure comes after Lucid started delivering its first electrical SUV, the Gravity, in December. With the Gravity efficiently launched, Rawlinson mentioned it’s “lastly the appropriate time for me to step apart.”

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Is it the appropriate time? Lucid is getting into an inflection level because it ramps up Gravity output this yr. Like different EV startups together with Rivian (RIVN), and actually any automobile maker proper now, Lucid is aggressively reducing prices to spice up earnings.

Lucid nonetheless has large plans for 2025. The corporate expects to produce 20,000 autos this yr, greater than double the roughly 9,000 it in-built 2024.

Accelerating development in 2025

Though no supply or gross sales steering was provided, the corporate mentioned it should “proceed to prudently handle and alter manufacturing to fulfill gross sales and supply wants” in 2025.

After 4 consecutive document quarters, Lucid delivered 10,241 autos final yr, up 70% (6,001) from the yr prior. Within the closing three months of 2024, Lucid delivered practically 3,100 alone.

With its electrical SUV hitting the market, Lucid has excessive hopes for 2025. Within the coming weeks, Winterhoff defined on the corporate’s earnings name that Lucid expects “just about all of our studios to have showroom and take a look at drive” Gravity fashions.

After opening in November, orders for the Gravity Grand Touring in November have “exceeded expectations.” Though no particular numbers have been talked about, Winteroff mentioned Gravity orders “are exceeding the Air Grand Touring by far” within the US. The electrical SUV is now obtainable in Canada and Saudi Arabia.

In accordance with Lucid, 75% of Gravity orders are new to the model. And that is with “very restricted advertising and marketing” which Lucid will ramp up all year long.

Though others, like Ford, cancelled plans for a three-row electrical SUV, Lucid believes its expertise offers it a bonus.

Winteroff defined on the decision that “others are transferring away from bigger 3-row SUVs as a result of it’s difficult to create an SUV with plenty of house with out sacrificing vary or having a big battery pack,” making it much less worthwhile and, due to this fact, much less enticing to construct.

Lucid inventory slips following CEO departure, This autumn earnings

Lucid reported This autumn income of $234.5 million, up 50% from the yr prior. The corporate additionally narrowed working losses to $732.95 million regardless of the upper output within the quarter.

The corporate ended 2024 with round $6.13 billion in liquidity, which Lucid mentioned is sufficient to fund it via the second half of 2026, when it plans to launch its first midsize EV.

Lucid confirmed plans to launch three midsize autos, with the primary set to start out manufacturing in late 2026. Rawlinson mentioned earlier this month that when the midsize EVs arrive, it is going to be “lastly after we compete immediately with Tesla.”

The corporate confirmed it has signed off on the superior engineering section of two of the midsize fashions, that are anticipated to be a Tesla-rivalling electrical sedan and SUV.

Final yr, Rawlinson boasted that the new midsize fashions are aimed “proper within the coronary heart of Tesla Mannequin 3, Mannequin Y territory” with beginning costs round $50,000.

With among the most superior EV powertrain tech, Lucid has one other vital alternative over the following few years.

Lucid is increasing its tech license enterprise. After securing a tech partnership with Aston Martin in 2023 to provide its proprietary “Wunderbox” powertrain tech, Rawlinson not too long ago hinted the corporate was in talks with a number of automakers over comparable offers.

Winterhoff confirmed on the decision that Lucid is “anticipating offers to shut quickly,” however didn’t provide any extra particulars.

The 2025 Lucid Air is already thought-about the “world’s best automobile” with a document 5 miles/kWh. Nevertheless, the brand new midsize fashions shall be powered by Lucid’s Atlas powertrain, which Rawlinson claimed is “an absolute breakthrough” when it comes to effectivity and price discount.

Regardless of the upbeat outlook, Lucid’s inventory fell over 12% on Wednesday following the CEO transition. Lucid shares are down 25% over the previous yr and round 65% since 2023.

Even with the CEO transition, Lucid has large ambitions over the following few years. What are your ideas on the shakeup? Tell us within the feedback.