On the Dash:
• Lucid is cutting 12% of its workforce, affecting hundreds of employees.
• Production workers in Arizona are not impacted by the layoffs.
• The company is focused on margin improvement, a midsize platform launch in 2026 and expanding Gravity SUV sales.
Lucid is cutting 12% of its workforce as the electric vehicle maker restructures operations following a challenging year marked by softening demand and ongoing cost pressures. TechCrunch first reported the job cuts Friday.
The EV maker confirmed the reductions in a statement, saying the move is intended to streamline operations and improve gross margins while positioning the company for long-term growth. The number of affected employees has not been disclosed. The company reported approximately 6,800 full-time employees globally at the end of 2024, indicating that the layoffs amount to several hundred positions. Hourly production workers at its Arizona manufacturing facility will not be impacted.
The cuts come as Lucid navigates a volatile EV market. In 2025, the automaker faced production challenges, supply chain disruptions, rising costs and policy shifts that pressured consumer demand. Higher borrowing costs have also weighed on purchases of premium electric vehicles, prompting Lucid to introduce discounts and promotional offers on its Air sedan last year.
Lucid currently produces the Air luxury sedan and the Gravity SUV. In November, it launched the Gravity Touring SUV with a starting price of $79,900, marking a lower entry point than much of its historically six-figure lineup. The automaker delivered a record 5,345 vehicles in the fourth quarter, helped by strong early reception for the Gravity SUV, which offset weaker demand following the expiration of certain U.S. tax credits.
Production volumes have steadily increased. Lucid built approximately 18,300 vehicles last year, more than double its output the previous year.
Looking ahead, the company plans to begin production of a midsize vehicle platform in late 2026. It is also investing in advanced driver-assistance systems and software development, while continuing to expand sales of both the Air and Gravity models.
Beyond its core vehicle lineup, Lucid has been expanding into autonomous mobility. Last year, the company announced a partnership with Uber and autonomous vehicle firm Nuro to develop a fleet of robotaxis.
Shares of Lucid were down less than 1% in afternoon trading in New York on Friday. The restructuring highlights the broader profitability challenges facing premium EV manufacturers as market growth moderates and competition intensifies.
