NEW YORK, July 26, 2026, 11:09 a.m. EDT — U.S. markets are closed.
- Lucid ended Friday at $6.30, falling 14.4% over the week.
- In Q2, deliveries accounted for 82.8% of production, compared to 56.2% during Q1.
- First-quarter free cash outflow amounted to approximately 58% of the company’s market capitalization as of Friday.
Shares of Lucid Group NASDAQ:LCID dropped 14.4% over the past week, ending Friday at $6.30. Investors are focusing on cash generation instead of production volumes.
Lucid reported a non-GAAP free cash flow deficit of $1.44 billion in the first quarter. That represents 58% of the company’s $2.46 billion market capitalisation as of Friday.
Lucid reported improved operating conversion, delivering 3,953 vehicles in the second quarter following production of 4,774 units.
Deliveries accounted for 82.8% of total production, an increase from 56.2% in Q1. The gap between production and deliveries decreased by 66% this quarter.
However, production during the first half surpassed deliveries by 3,228 vehicles. This gap should not be interpreted as an exact inventory figure.
| Operating measure | Q1 2026 | Q2 2026 | First half |
|---|---|---|---|
| Vehicles manufactured | 5,500 | 4,774 | 10,274 |
| Vehicles handed over | 3,093 | 3,953 | 7,046 |
| Deliveries as percentage of output | 56.2% | 82.8% | 68.6% |
| Production minus delivered units | 2,407 | 821 | 3,228 |
Inventory was reported at $1.47 billion as of March 31, marking a 32% increase from the year-end figure.
At the time, Chief Financial Officer Taoufiq Boussaid described the situation as “elevated inventory.” Lucid anticipated that as deliveries steadied, this inventory would “convert to revenue and cash.” Lucid Group, Inc.
Q2 delivery figures indicate changes. The August 4 reports will indicate if cash movement accompanied them.
Losses continued among electric-vehicle stocks. Tesla NASDAQ:TSLA slid 18.0%, and Rivian Automotive NASDAQ:RIVN fell 9.2%. The Nasdaq Composite was down 2.1%.
Lucid faced increased pressure, suspending its 2026 production forecast in May following supplier issues. The restructuring in June eliminated 18% of its U.S. workforce and discontinued the second shift at AMP-1.
Lucid projects the initiative will reduce costs by $158 million per year. Associated cash expenses are expected to total $32 million.
Liquidity continues to serve as the cushion. Earlier this month, Lucid stated it has the resources to support operations through well into next year. Cantor Fitzgerald analyst Andres Sheppard similarly described it as “funded well into next year.” Reuters
Rivian is set to announce its second-quarter results on Thursday following the market close. Lucid, meanwhile, has scheduled its upcoming investor event for August 4, when it will hold its earnings call at 5:30 p.m. EDT.
Investors are seeking decreased inventory, lower cash consumption and updated production guidance. Improved deliveries are most significant when they free up working capital.
Risks: Supply chain issues at Gravity may happen again, demand might not meet production, and further funding could dilute shareholders. Continued losses in another soft quarter would keep cash flow concerns as a main factor in Lucid’s valuation.
The production ratio saw gains. Cash conversion has yet to be demonstrated.
Related articles: NASDAQ:LCID
