Key facts
- Lucid Motors has delayed the launch of its affordable electric vehicle, the Cosmos, to the second half of 2027.
- The decision is aimed at addressing quality concerns and ensuring all production requirements are met before launch.
- CEO Silvio Napoli acknowledged past execution issues, including launching products prematurely and slow response to quality problems.
- The company has implemented new 'quality gates' in its development process.
- Lucid has reduced its workforce and made executive changes as part of a broader transformation.
Lucid Motors has pushed back the launch of its planned $50,000 midsize electric vehicle, the Cosmos, to the second half of 2027. The decision comes as the company's new CEO, Silvio Napoli, seeks to address quality concerns and past execution missteps.
Napoli, who took the helm in June, stated during an earnings call that Lucid has "disappointed on several fronts and for far too long," citing issues such as launching products before they were ready and slow responses to quality problems. The company reported a net loss exceeding $1 billion for the quarter.
To ensure future product readiness, Lucid is introducing new "quality gates" in its development process. The company has also undergone significant restructuring, including workforce reductions of 12% in February and an additional 18% in June, along with executive changes. Lucid aims to achieve $1.4 billion in savings by the end of the year.
Despite these challenges, Lucid reported approximately $3 billion in total liquidity, which it expects to sustain into 2027. The delay in the Cosmos launch allows rivals more time to solidify their positions in the midsize electric SUV market.