Lucid launches new SUV despite cash burns and increasing competition

Lucid Motors (LCID) is rolling out its first large sport utility vehicle as it tries to expand sales and stabilize finances. The company has struggled to convert critical praise into sustained demand.

The Arizona-based electric vehicle maker has begun ramping production of the Gravity, a three-row SUV priced from about $79,900. It is Lucid’s first entry into the more popular SUV segment after launching with the Air luxury sedan.

The company has delivered only a few hundred Gravity vehicles in the United States through the third quarter of 2025. Executives say supply chain shortages slowed early production, including limited access to magnets, aluminum, and chips.

Lucid reported a third-quarter net loss of nearly $1 billion, worse than Wall Street expectations. Analysts have raised concerns about cash burn as the company continues to post negative gross profit.

Demand for electric vehicles has weakened across the industry. Federal incentives, including a $7,500 tax credit, ended in late September, and several automakers have scaled back EV plans.

Lucid’s Air sedan has earned strong reviews and class-leading range. It remains a low-volume product in a market dominated by SUVs and crossovers. The company delivered just over 10,000 vehicles last year, far behind market leader Tesla.

Executives say the Gravity could attract significantly more buyers than the Air. Early orders often push the price above $100,000, according to the company.

Lucid has added a second assembly shift at its Casa Grande, Arizona factory. Deliveries have increased for seven consecutive quarters, including a sharp year-over-year rise in the third quarter.

The company is also developing a lower-priced midsize crossover expected to cost about $50,000. Analysts say higher volumes could help, but margins remain a concern.

Lucid is backed primarily by Saudi Arabia’s Public Investment Fund, which owns about 55% of the company. Recent financing increased available liquidity to about $5.5 billion, which Lucid says is sufficient through the first half of 2027.

The company is investing in autonomous driving and plans to supply vehicles for a future robotaxi fleet. Executives say parallel investments are necessary to build a sustainable business.