Lucid Breaks Delivery Record in Q1 2025, Anticipates $1 Billion Convertible Note Sale
In a recent announcement, electric vehicle manufacturer Lucid has revealed its plans for the remainder of the year, including a lower production target for 2025 and a focus on ramping up the launch of its new Gravity SUV.
The company has adjusted its production target for 2025, setting it at approximately 18,000–20,000 vehicles. This slightly lower figure is attributed to a changing market environment and external factors. Among these vehicles, it is estimated that Lucid will deliver around 6,000 Gravity SUV vehicles in 2025, with deliveries rising to about 10,200 in 2026 according to analyst Cantor Fitzgerald.
The Gravity SUV has already begun deliveries earlier in 2025, with initial deliveries going to employees and friends and family. Interim CEO, Marc Winterhoff, indicated that the brand is currently more supply-constrained than demand-constrained for the Gravity, expecting it to significantly boost customer demand going forward.
Lucid's production and delivery plans for 2025 centre around scaling up Gravity production, preparing for the start of production of a new midsize platform in the second half of 2026, and expanding revenue streams and brand presence. The new midsize platform will include a midsize SUV and a sedan targeted to compete in the $50,000 price range against the Tesla Model Y and Model 3.
To achieve these goals, Lucid has announced a $1 billion convertible note offering. The offering is intended to help the company with its general corporate purposes, although the exact purpose was not specified in the press release. The notes will be offered to qualified institutional buyers, with an option for additional $100 million within 13 days following the issuance.
Notably, Lucid also plans to use the proceeds to pay for the cost of capped call transactions. The company also intends to repurchase a portion of its outstanding 1.25% Convertible Senior Notes due 2026 with the proceeds from the offering.
This strategy reflects a cautious but growth-oriented approach given current macroeconomic challenges and competitive pressures. Lucid holds about $4.86 billion in liquidity to fund operations through at least late 2026.
This is Lucid's sixth consecutive quarterly delivery record. In Q1 2025, the company delivered 3,109 vehicles, a 58% increase over Q1 2024. Production in Q1 2025 totaled 2,212 vehicles at Lucid's Casa Grande, Arizona facility. Additionally, 600 vehicles were shipped for final assembly at Lucid's AMP-2 plant in Saudi Arabia.
The production of the Gravity SUV will contribute to Lucid's production for the remainder of the year, with wider customer deliveries of the Gravity SUV expected to commence by the end of April 2025.
[1]: Lucid Motors Announces $1 Billion Convertible Note Offering [2]: Lucid Motors to Begin Wider Customer Deliveries of Gravity SUV by End of April 2025 [3]: Lucid Motors Lowers 2025 Production Target [4]: Lucid Motors' Gravity SUV: What We Know So Far [5]: Lucid Motors' Gravity SUV: What We Know About the Electric SUV
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