Gravity, Atlas and Cash Runway Shape Lucid's Next Phase

California-based electric vehicle (EV) maker Lucid Group LCID has stacked seven straight quarterly delivery records as Gravity orders lift pricing. Liquidity actions extend runway into 2027, even as profitability remains the central hurdle.

Management targets further growth into late 2025 as Gravity scales and a second shift supports output. Atlas, the next powertrain, is set to push costs lower as the midsize program approaches late-2026 start of production.

Product Mix Turns Upward With Gravity

Across the past seven quarters, deliveries set successive records, aided by Gravity demand. In the last reported quarter, average selling prices rose as Gravity made up a larger share of orders. Management expects deliveries to grow again in the fourth quarter of 2025 and for Gravity to constitute the majority of production in that period.

Sales Estimates chart shows revenue rising from $1.22 billion in 2025 to $2.49 billion in 2026, while the EPS and Sales History and Estimates visuals reinforce the upward sales trajectory through 2026.

Efficiency Agenda Anchored By Atlas Powertrain

Atlas is designed around fewer parts with integrated power and thermal systems to drive higher efficiency and lower weight. A rare-earth-free variant is part of the roadmap, aligning product costs with scale economics.  

Management plans to launch the first midsize model using Atlas in late 2026. Executed well, Atlas should reduce per-unit costs and capital intensity, supporting gross margin progress as volumes build.

Capital And Liquidity Extend The Runway

At the end of Q3’25, liquidity stood at about $4.2 billion. After quarter-end, the undrawn delayed-draw term loan facility with the Public Investment Fund increased to approximately $2 billion, taking pro forma liquidity to roughly $5.5 billion.

Management indicates this funding runway extends into the first half of 2027, providing time to scale Gravity and prepare the midsize launch while pursuing efficiency programs.

Where Margins Stand— And The Next Checkpoints

Despite mix tailwinds, Q3’25 GAAP gross margin was approximately negative 99%, only modestly better than a year ago. Tariffs compressed reported margin by about 13 percentage points, and inventory build ahead of ramps plus impairments weighed on results.

Investors should monitor Gravity Touring availability and the October-launched second shift that supports higher output and mix. On the software side, watch for ADAS upgrades planned for Gravity and the midsize platform by late 2026. Hardware milestones include the midsize start of production in late 2026 and the cadence of Atlas integration.

Zacks Rank & Key Peers

LCID currently carries a Zacks Rank #4 (Sell) with VGM Score of F.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Better ranked players in the electric vehicle space include Rivian Automotive RIVN and Tesla TSLA. While RIVN carries a Zacks Rank #2 (Buy), Tesla carries a Zacks Rank #3 (Hold).

The Zacks Consensus Estimate for RIVN’s 2026 top and bottom line implies a year-over-year improvement of 25% and 14%, respectively.

The Zacks Consensus Estimate for TSLA’s 2026 revenues and earnings implies year-over-year growth of 12% and 46%, respectively.

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This article originally published on Zacks Investment Research (zacks.com).

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