Lucid Group missed Wall Street's third-quarter earnings expectations as the struggling electric vehicle manufacturer pursues what it calls an operational reset focused on reducing costs and narrowing losses. The company announced on Monday a $1.75 billion increase in funding from Saudi Arabia's Public Investment Fund, its largest shareholder, through an expanded delayed draw term loan.
For the third quarter, Lucid reported revenue of $336.6 million and a loss of $3.31 per share, according to LSEG estimates. The company's net loss for the quarter was $830.9 million, an improvement from a loss of $978.4 million a year earlier. However, the adjusted earnings before interest, taxes, depreciation and amortization showed a loss of $717.7 million, worse than Wall Street's expectation of a $611 million loss.
The results mark Lucid's first quarterly report since Silvio Napoli took over as chief executive in June and announced a restructuring plan. The turnaround strategy includes $1.4 billion in cash flow improvements this year and delays the midsize vehicle launch from the end of 2025 to the second half of the following year. Napoli said the company is also focusing on a robotaxi program with Uber and Nuro, a factory under construction in Saudi Arabia, and the midsize vehicle programme. "Our transformation is beginning to show progress. We are acting with urgency, strengthening the fundamentals and driving greater discipline, while continuing to invest in the priorities to deliver profitable long-term growth," Napoli said in a statement.
The additional Saudi funding raises Lucid's total liquidity to $3.75 billion, up from $2 billion at the end of the third quarter. The company expects the capital to provide financial flexibility through the fourth quarter of 2027 and to help fund operations and investments into the midsize vehicle production start. Lucid said it would communicate its midterm plan and targets early next year, having suspended previous guidance and targets in May to allow time for new leadership to develop a turnaround strategy.
For investors and potential buyers, Lucid's continued reliance on Saudi funding and widening adjusted losses signal the company remains far from profitability despite cost-cutting efforts and restructuring.