- Lucid has delayed the launch of its midsize Cosmos until the second half of 2027.
- Electric crossover was originally supposed to arrive this year for under $50,000.
- The company is revamping itself to cut costs, preserve cash, and streamline operations.
Lucid Motors is struggling and the company only delivered 3,953 vehicles in the second quarter. That’s a drop in the bucket, but it was a 19% improvement from a year ago.
Since going from terrible to awful isn’t great, the company has announced an “operational reset.” It aims to slash costs, reduce cash burn, and simplify operations.
More: Lucid To Lay Off 18% Of Its US Workforce, Just Four Months After Cutting 12%
As CEO Silvio Napoli explained, “Lucid has leading technology, compelling products and deeply committed people, but potential is not performance.” As a result, the company is going “back to basics, with a clear focus on cash, customers, and culture.”
Lucid didn’t hold back as they admitted to “premature launches,” an ownership experience that fell short, and quality issues that were not addressed in a timely fashion. To solve the problems, the company has hired more service technicians, expanded their mobile service capability, and slashed wait times for service appointments.
As part of the revamp, Lucid promises “greater discipline” in regards to spending, investment, and capital allocation. The automaker has also deliberately reduced production to better align with anticipated demand. This frees up working capital, while also keeping inventory in check.
Speaking of being frugal, the company has identified $1.4 billion in savings for 2026. Reduced production plays a large part in this, but Lucid is also looking to cut approximately $500 million in capital expenditures. The company also expects to save around $158 million annually thanks to job cuts that were announced last month.
In other news, Lucid aims to accelerate decision-making by “simplifying the organization, reducing layers and clarifying accountability.” The automaker didn’t go into many specifics, but noted the “new structure halves the number of direct reports to the CEO and places experienced leaders in key roles across finance, technology, customer experience, transformation, digital and program execution.”
On the product side of things, Lucid said their robotaxi program with Uber and Nuro is a “top priority.” Nearly 100 vehicles are already being tested in the San Francisco Bay Area and the company has begun delivering production-validation Gravity SUVs to Nuro.
The ‘final’ robotaxi is slated to go into production in the fourth quarter and the company is eyeing a launch in late 2026. Lucid has high hopes for the model as estimates suggest automakers could make billions on robotaxi manufacturing in the years ahead.
Work on the company’s all-important midsize Cosmos is progressing as Lucid said Atlas drive units and prototypes are “advancing through validation, durability testing, crash certification, battery-pack manufacturing validation, and cold-weather testing in New Zealand.”
Interestingly, the press release didn’t mention the biggest news of all – the Cosmos is being delayed. During the related earnings call, officials said their AM2 plant in Saudi Arabia won’t be ready to build the model until the second half of 2027.
The Cosmos crossover will be the first vehicle fully built at the plant as well as their first midsize model. It’s essentially their version of the Rivian R2 and it’s a make or break vehicle for the company.
Its delay is a serious setback, but officials used the call to say they won’t repeat the mistakes of the past. In particular, they said the Cosmos will only launch when “every process and quality requirement” has been met. In effect, the company doesn’t want to release a half-baked product onto the market.