Manufacturing pace affected by challenges in the delivery system
Lucid Motors Faces Production Delays for Gravity SUV, but Ramp-Up Expected by End of Year
Lucid Motors, the luxury electric vehicle manufacturer, has faced production delays for its Gravity SUV, primarily due to supply chain disruptions and a shortage of Chinese rare-earth magnets essential for electric motors.
In a recent statement, interim CEO Marc Winterhoff acknowledged that the production ramp-up for the Gravity has gone more slowly than anticipated, with supplier constraints being ongoing challenges. While most Gravity configurations are now in production, some remain affected by component shortages, leading to delays in deliveries for certain variants.
The company expects "nearly all build combinations" to be available by the end of summer 2025, with production output increasing significantly in the second half of the year. Despite these production issues, Lucid's daily order rate for the Gravity SUV has "nearly doubled," indicating strong customer interest despite the slow start in delivering vehicles.
In the second quarter of 2025, Lucid reported revenue of around $259 million, and the company ended the quarter with total liquidity of around $4.9 billion. The company produced 3,863 vehicles and delivered 3,309 vehicles, a new record for deliveries.
The Gravity's production issues are primarily due to bottlenecks in the supply chain and the limited supply of rare-earth magnets from China. However, Lucid has secured alternative magnets to maintain production of the Gravity through the end of the year.
Lucid Motors is still posting losses with its premium electric vehicles, the Air and Gravity. Despite this, the company is on track to begin production of a mid-sized SUV priced around $50,000 in 2026. The third model line from Lucid will be unveiled next year.
Both the Lucid Air and Gravity are headed to Europe, and the company is actively working to resolve the supply chain challenges and improve production efficiency to ramp up Gravity production by late 2025.
[1] Lucid Motors (2025). Lucid Gravity production ramp-up due to efforts to address supply chain bottlenecks and improve production efficiency. [Press Release]. [2] Reuters (2025). Lucid Motors' Gravity SUV production delayed due to supply chain issues, rare-earth magnet shortage. [News Article]. [3] The Verge (2025). Lucid Gravity SUV production delayed, but daily order rate nearly doubles. [News Article].
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