Lucid CEO on Q2 Earnings, Supply Chain Resilience, and Autonomous Vehicle Partnerships

Q2 Performance and Challenges

• 💡 Despite challenges, Lucid achieved its sixth consecutive record quarter for deliveries and record production in Q2.
• ⚠️ The primary challenge faced was trade policy and tariffs, which unexpectedly impacted the cost base and gross margin.
• 📌 Fortunately, Lucid overcame issues with magnet availability, a problem affecting many in the industry, and secured supply for the remainder of the year.

Supply Chain and Raw Material Sourcing

• 🌍 Trade policy and tax credits remain a significant concern, keeping Lucid management vigilant.
• ⚡ Lucid's engineers reacted swiftly to overcome supply chain disruptions in Q2, preventing production halts.
• 🔑 The company has secured necessary licenses for raw materials and magnets for the rest of the year.
• 🔬 New initiatives include changing magnet chemistry, moving away from rare earth elements, and sourcing from diverse markets to enhance resilience.
• 🇺🇸 Lucid is building all vehicles in the US, with the vast majority of battery cells soon to come from a new Panasonic plant in Kansas.
• 🤝 Deals have been struck with graphite suppliers to ensure raw material availability for battery production.

Autonomous Vehicle Development and Financial Outlook

• 🚗 Lucid is partnering with Uber and the autonomous vehicle firm Neuro to develop autonomous vehicles.
• 🚀 Integration into Lucid's vehicles is progressing rapidly, with confidence in rolling out autonomous vehicles by the end of 2026 in the US and globally.
• 💰 Lucid has approximately $4.86 billion in liquidity, which is expected to fund operations into the second half of next year.
• 📈 The company will opportunistically raise capital when it is deemed appropriate and necessary.