LCID Q2 Deep Dive: Robotaxi Partnership, Supply Chain Progress, and Tariff Pressures

August 12, 2025 at 23:24 PM EDT

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Luxury electric car manufacturer Lucid (NASDAQ: LCID) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 29.3% year on year to $259.4 million. Its non-GAAP loss of $0.24 per share was 11.1% below analysts’ consensus estimates.

Is now the time to buy LCID? Find out in our full research report (it’s free).

Lucid (LCID) Q2 CY2025 Highlights:

Revenue: $259.4 million vs analyst estimates of $259.1 million (29.3% year-on-year growth, in line)
Adjusted EPS: -$0.24 vs analyst expectations of -$0.22 (11.1% miss)
Adjusted EBITDA: -$632.1 million vs analyst estimates of -$624.3 million (-244% margin, 1.2% miss)
Operating Margin: -310%, up from -393% in the same quarter last year
Sales Volumes rose 38.2% year on year (70.5% in the same quarter last year)
Market Capitalization: $6.97 billion

StockStory’s Take

Lucid’s second quarter results were met with a significant negative market reaction, following a revenue performance in line with Wall Street but a wider-than-expected non-GAAP loss. Management attributed the quarter’s outcomes to ongoing supply chain challenges, particularly with critical materials like magnets, and highlighted the impact of tariffs on gross margin. Interim CEO Marc Winterhoff acknowledged the complexity of overcoming these bottlenecks, noting, “Our team has been working very hard all year to address bottlenecks in our supply chain and improve manufacturing efficiency.” The company also faced margin headwinds from elevated costs and inventory adjustments tied to tariff-related impacts.

Looking ahead, Lucid’s guidance is shaped by its efforts to scale production, expand into new markets, and reduce cost pressures. Management emphasized the importance of the recently announced partnership with Uber and Nuro, which aims to bring robotaxi vehicles to market using Lucid’s technology. Winterhoff stated, “This partnership is an important step for Lucid into the multitrillion dollar robotaxi market.” The company is also prioritizing domestic sourcing and operational discipline to mitigate further tariff risks and ensure the successful launch of its midsize platform in late 2026, while continuing to invest in marketing and technology to support future growth.

Key Insights from Management’s Remarks

Lucid’s management attributed Q2 performance to momentum in new vehicle launches, persistent supply chain issues, and significant tariff impacts, while highlighting strategic moves to enter new markets and strengthen the brand.

Robotaxi partnership announced: The company unveiled a multi-year agreement with Uber and Nuro to develop premium autonomous vehicles for Uber’s ride-hailing service, integrating Lucid’s vehicle architecture with Nuro’s Level 4 autonomy and Uber’s network. This partnership includes a planned $300 million investment from Uber and is expected to launch the first vehicles in late 2025.
Brand marketing initiatives: Lucid appointed actor Timothée Chalamet as its first global brand ambassador and is launching a new marketing campaign to position the Gravity SUV in popular culture. Management believes this will drive demand and strengthen the brand ahead of future mass-market model launches.
Production ramp and supply chain adaptation: The company produced 3,863 vehicles and delivered 3,309 units, overcoming supply chain bottlenecks, especially shortages of Chinese-sourced magnets. Quick in-house engineering changes and vertical integration allowed Lucid to substitute alternative components and avoid production stoppages.
Tariff and cost pressures: Gross margin was negatively affected by approximately $54 million in tariffs, representing a 21 percentage point decrease. Management is implementing cost optimization and domestic sourcing initiatives, such as agreements for U.S.-sourced graphite and partnerships with critical minerals suppliers, to counteract future headwinds.
Technology and product advancements: Recent software updates enabled hands-free driving in the DreamDrive Pro advanced driver assistance system, and the 2026 Lucid Air introduced a new battery pack for extended range. The company’s vehicles are now compatible with the Tesla Supercharger network, enhancing charging accessibility for customers.

Drivers of Future Performance

Lucid’s outlook centers on scaling production, entering new markets, and managing cost headwinds as it prepares for the next phase of growth.

Scaling with new partnerships: Management believes the Uber and Nuro partnership will validate Lucid’s technology in commercial applications and open up opportunities in the robotaxi and fleet sectors, positioning the company for technology licensing and broader platform adoption.
Supply chain and tariff mitigation: The company is prioritizing domestic sourcing for key materials and refining supplier relationships to reduce exposure to geopolitical risks and tariffs. Management indicated that these actions should move gross margins closer to break-even over time.
Focus on midsize platform: The upcoming midsize vehicle platform, on track for production in late 2026, is being designed for higher volume, lower cost, and efficient manufacturing. Management is applying lessons from Gravity’s ramp to ensure a smoother launch, with the goal of expanding Lucid’s addressable market.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be focused on (1) the execution and commercial rollout of the Uber and Nuro robotaxi partnership, (2) the pace of Gravity production ramp and supply chain stabilization, and (3) progress toward cost reductions through increased domestic sourcing and inventory management. Updates on the midsize platform’s development timeline and brand marketing effectiveness will also be key signposts for future performance.

Lucid currently trades at $2.27, down from $2.44 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

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