By Kara Carlson | Updated on Oct 05, 2026 at 09:05 PM
Lucid Group Inc.’s production fell sharply as the struggling maker of electric vehicles worked to rein in costs and prioritize selling existing inventory.
The Saudi Arabia-backed company said Monday that it assembled 2,954 EVs in the third quarter, down about 24% year-over-year and a 38% reduction from the previous three-month period. A decline was expected after Lucid eliminated a second shift at its assembly plant in Arizona in June, part of a cost-cutting plan that included eliminating about 18% of its workforce.
Chief Executive Officer Silvio Napoli is overseeing a sweeping overhaul to reverse years of losses. The company is targeting $1.4 billion in cash savings this year and a broader reset of its operations. Napoli in August warned full-year sales and production would fall short of Wall Street’s estimates at that time.
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Lucid said in a statement that it “continued to align production with near-term demand” as part of the operational overhaul.
Included in the $1.4 billion target is as much as $800 million in inventory savings. Lucid helped reduce inventories by delivering 3,806 vehicles last quarter, more than some analysts had expected. Demand for Lucid’s Gravity SUV, one of two models it sells, regained momentum in the quarter, the company said.