A Faulty Weld Stopped Gravity Deliveries for 29 Days and Lucid Stock Is Down 64% Over the Past Year
Why it matters: A faulty weld stopped Gravity deliveries for 29 days, contributing to Lucid's 64% stock drop over the past year.
- Lucid (LCID) shares have fallen 64% over the past year to $8.81, trading near 52-week lows, and are down 16% year-to-date.
- Q1 2026 deliveries dropped 42% to 3,093 vehicles due to a 29-day halt in Gravity SUV deliveries caused by improperly welded seatbelt anchors.
- Management reaffirmed full-year guidance of 25,000 to 27,000 vehicles despite the delivery setback.
- Lucid burned $3.8 billion in free cash flow in 2025 and lost money on every car sold, with liquidity falling to $4.6 billion by Q4 2025.
- Saudi Arabia’s Public Investment Fund is supporting Lucid with a $2.0 billion term loan and $5.5 billion in pro forma liquidity, aiming for Saudi production by year-end 2026.
- Prediction markets now price a 48% bankruptcy probability for Lucid before the end of 2026.
Lucid Group's stock has plummeted 64% over the past year, hitting near 52-week lows, after a faulty weld halted Gravity SUV deliveries for 29 days, contributing to a 42% drop in Q1 2026 deliveries. Despite management reaffirming full-year guidance, the company faces significant financial challenges, burning $3.8 billion in free cash flow in 2025 and losing money on every car sold.
