This article first appeared on GuruFocus.
Lucid Group (NASDAQ:LCID) shares fell about 15% on Wednesday after the electric-vehicle maker reported a wider-than-expected second-quarter loss and outlined an operational reset aimed at reducing cash burn.
Lucid posted adjusted loss per share of $2.78, compared with analysts' expectation of a $2.42 loss. Revenue increased 56% year over year to about $405 million but came in below Wall Street estimates compiled by LSEG. During the quarter, the company produced 4,774 vehicles and delivered 3,953, while cash consumption remained elevated.
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Lucid said it is targeting approximately $1.4 billion in cash-flow improvements during 2026 through lower inventory, reduced capital spending and operating-cost cuts. The company also delayed the launch of its lower-priced midsize EV platform to the second half of 2027 as it prioritizes quality and tighter cost controls.
Management said recently secured financing and restructuring measures are expected to provide sufficient liquidity into 2027. Lucid also continues to advance its Saudi Arabia manufacturing facility and robotaxi initiatives with partners including Uber (UBER) and Nuro, although those programs are not expected to contribute meaningful revenue in the near term.