"Lucid Motors reported a $1 billion net loss in the first quarter, leading to the suspension of its full-year production guidance. The company halted Gravity SUV sales for nearly a month due to a seat defect that prompted a recall of nearly 4,500 vehicles."
"The decision to pull the production guidance for the year was a governance decision, said Taoufiq Boussaid, the startup's chief financial officer. We are not constrained by capacity. We are constrained by our own discipline not to build inventory ahead of demand."
"The automaker blamed its seat supplier for the problem, stating that unapproved design changes were made to the lap belt anchor weld, affecting Gravity SUVs built after February."
Lucid Motors has suspended its full-year production guidance following a $1 billion net loss in the first quarter. Sales of the Gravity SUV were paused for nearly a month due to a seat defect that led to a recall of nearly 4,500 vehicles. The company stated it is not limited by production capacity but by its discipline in managing inventory. Despite reaffirming a production estimate of 25,000 to 27,000 vehicles for 2026, the current situation reflects a significant decline from earlier expectations.
Read at insideevs.com
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