Shares of Lucid Group dropped over 10% on Wednesday following the unexpected resignation of CEO Peter Rawlinson and a downgrade of the company’s stock by Bank of America. Rawlinson, who had also served as the company’s chief technology officer, played a critical role in Lucid’s growth, particularly in its decision to go public.
Leadership Shake-Up Creates Uncertainty
Lucid, which is majority-owned by Saudi Arabia’s Public Investment Fund, is now searching for a successor, prompting concerns among investors. Analysts have expressed doubts regarding the company’s future, with Bank of America citing potential risks to product development and capital funding in its downgrade.
Interim CEO Marc Winterhoff, previously Lucid’s chief operating officer, has stepped into the role with a commitment to executing the company’s strategic vision. He emphasized the company’s focus on scaling production, reducing financial losses, and strengthening market presence.
Production Expansion Goals
Despite significant losses, Lucid has been improving its gross margins. In 2024, its GAAP gross margin stood at -114%, up from -225% in 2023. Winterhoff has pledged to more than double Lucid’s vehicle production and improve efficiencies to accelerate the company’s path to profitability.
For the fourth quarter, Lucid reported a net loss of $636.9 million, or 22 cents per share, on revenue of $234.5 million.
New Product Lineup
Lucid’s first model, the Air sedan, has been praised for its technology and design but struggled with demand. In response, Winterhoff confirmed that production of the company’s second model, the upcoming Gravity SUV, will ramp up this year. Early consumer orders have already started in Saudi Arabia.
Lucid is also developing a new midsize EV platform slated for release in 2026—an effort both Rawlinson and Winterhoff have called essential for long-term growth.
Strengthening Marketing and Brand Awareness
As the company expands production, Winterhoff has vowed to intensify marketing efforts to boost brand recognition. He emphasized that instead of redefining Lucid’s vision, the focus will remain on execution and enhancing consumer outreach.
Lucid’s marketing and administrative expenses reached $900 million in 2024, showing an investment in customer acquisition efforts.
Advancing EV Technology
While the Lucid Air has been criticized for lacking advanced driver-assistance features seen in rivals like Tesla’s FSD or General Motors’ Super Cruise, the company expects to introduce its own hands-free driving system later this year.
Lucid has also sought to leverage its advanced EV battery technology by offering components to other manufacturers. Winterhoff confirmed ongoing discussions with potential partners, though specific details remain under wraps.
As Lucid navigates a leadership transition and aims to scale its production, the coming months will be crucial in determining the EV maker’s future trajectory.
