Lucid Motors Cuts 12% of US Staff Amid 'EV Winter'
Tesla rival Lucid has cut 12% of its U.S. staff, citing broad market headwinds for electric vehicle makers. The layoffs reflect intensified competition and rising operational costs in the EV sector. This move signals a potential consolidation or downturn for some players in the market.
- This is the third major workforce reduction for the company in as many years, following an 18% cut (1,300 employees) in March 2023 and a 6% cut (400 employees) in May 2024. - The layoffs strategically spared hourly employees in manufacturing, logistics, and quality control, signaling a focus on protecting production capabilities amid the ramp-up of new vehicles. - Despite more than doubling production to 18,378 vehicles in 2025, the company continued to post heavy losses, reporting a combined net loss of $2.56 billion through the first three quarters of the year alone. - The restructuring occurs at a critical juncture as Lucid scales production of its second model, the Gravity SUV, and prepares to launch a more affordable mid-size vehicle projected to start around $50,000. - The company has been operating under an Interim CEO, Marc Winterhoff, since early 2025 and has seen significant executive turnover, with at least 13 C-suite or VP-level leaders departing since October 2023. - Backed by a majority stake from Saudi Arabia's Public Investment Fund, Lucid's financial runway has been a persistent concern for investors, with the company noting in May 2024 that its cash reserves would only last another 12 months. - Beyond vehicle production, the company's stated priorities remain unchanged and include the development of a robotaxi service in partnership with Uber and Nuro, and continued investment in its Advanced Driver-Assistance Systems (ADAS) and software development.
