Lucid sales dip as supplier issue triggers Gravity SUV recall

Lucid Group reported a decline in its first-quarter sales on Friday, revealing a significant gap between the number of electric vehicles it manufactured and those it actually delivered to customers. The company emphasized that this discrepancy does not stem from a lack of market demand. Instead, Lucid attributed the lower delivery figures to a quality issue with a supplier that disrupted its operations.

The company’s performance metrics for the first quarter included:

• 3,093 vehicles sold, representing a 42% drop from the previous quarter.
• Sales that were about 0.5% lower than the same period last year.
• About 5,500 vehicles built during the quarter, leaving a substantial gap between production and deliveries.

The delivery disruption specifically affected the Lucid Gravity SUV, halting its deliveries for 29 days. This supplier quality issue also prompted Lucid to issue a recall for more than 4,000 Gravity SUVs. In its notification to the National Highway Traffic Safety Administration (the US auto safety regulator), the company disclosed that some of the anchors for the SUV’s second-row seat belts were not properly welded.

Lucid spokesperson Nick Twork confirmed that the sales decrease was tied to these supplier problems, noting that an unapproved change by the supplier led to a sales stop on the Gravity model that lasted for most of February. However, Twork highlighted the company’s underlying momentum, stating: “following eight record quarters, we showed strong results in both January and March, which very nearly achieved year-over-year growth on their own.”

In a securities filing on Friday, Lucid stated that the supplier issue has been addressed and expressed confidence that the disruption will not affect its manufacturing targets. The company reaffirmed its previously announced production guidance (the company’s forecast for vehicle manufacturing output) of between 25,000 and 27,000 vehicles for the year. Reaching the upper limit of this range would represent an increase of as much as 47% from 2025, when the company built 18,378 EVs.

This operational hurdle comes as Lucid prepares to manufacture its first vehicle on a new lower-cost platform aimed at the mass market. The upcoming vehicle is expected to cost around $50,000, positioning it to compete directly with the Rivian R2 SUV, as well as existing models such as the Tesla Model Y, Tesla Model 3, and Chevrolet Equinox EV.

Why it matters

Lucid’s ability to maintain its annual production guidance despite a significant Q1 delivery disruption and a safety-related recall will be a key test of its operational resilience as it prepares to launch a mass-market vehicle.