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Q2 Earnings Call

Need4Sleep said:
and it's also very much possible that the cash runway they've projected and calculated would include the R&D expenses of putting the sportier Gravity into production and developing midsize. There doesn't have to be a black-or-white / all-or-nothing approach
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Silvio Napoli seems to be a pretty pragmatic guy and there wasn’t a lot of ambiguity in his messaging on Tuesday. Short term he has a Herculean task of improving cash flow by $1.4B in 2026. It’s a target that he has to hit and it affords little flexibility. While I have no doubt that R&D will continue, it likely won’t be meaningful in the short term. The company has rightfully defined its priorities clearly and succinctly around survival.
 
Northpointe said:
Silvio Napoli seems to be a pretty pragmatic guy and there wasn’t a lot of ambiguity in his messaging on Tuesday. Short term he has a Herculean task of improving cash flow by $1.4B in 2026. It’s a target that he has to hit and it affords little flexibility. While I have no doubt that R&D will continue, it likely won’t be meaningful in the short term. The company has rightfully defined its priorities clearly and succinctly around survival.
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Yes, and given that Silvio himself says their sales are dominated by the Gravity, and they have demonstrated their ability to manufacturer the Uber/Nuro Gravities on the same line. If there is a demand for a specific variant or special edition that can use the existing Gravity line (i.e. whatever version of a sportier Gravity they'll release), why leave money on the table?

That's more sales and more cashflow coming in
 
Need4Sleep said:
Yes, and given that Silvio himself says their sales are dominated by the Gravity, and they have demonstrated their ability to manufacturer the Uber/Nuro Gravities on the same line. If there is a demand for a specific variant or special edition that can use the existing Gravity line (i.e. whatever version of a sportier Gravity they'll release), why leave money on the table?

That's more sales and more cashflow coming in
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They're scaling back production on the Gravity (and Air). They overestimated demand and lose money on every sale with a gross margin of -105%. Free cash flow in the most recent quarter was -$1,476M. At some point future plans have to reflect the current financial realities of the company. That's what Napoli is acknowledging and the reason why his top priority is cash and cost. The company will obviously need to sell more vehicles in the future to survive and grow. That's a given. But that's tomorrow's message, not today's.
 
Northpointe said:
They're scaling back production on the Gravity (and Air). They overestimated demand and lose money on every sale with a gross margin of -105%. Free cash flow in the most recent quarter was -$1,476M. At some point future plans have to reflect the current financial realities of the company. That's what Napoli is acknowledging and the reason why his top priority is cash and cost. The company will obviously need to sell more vehicles in the future to survive and grow. That's a given. But that's tomorrow's message, not today's.
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you can scale back production while still delivering on variants that have material substantial demand. And in the same breath, cut back on production of parts and variants that do not have as much demand
 
Need4Sleep said:
you can scale back production while still delivering on variants that have material substantial demand. And in the same breath, cut back on production of parts and variants that do not have as much demand
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Absolutely. But whatever variant is in the offering, whether it's an outdoor/rugged Gravity or a high performance Sapphire derivative, it's not being counted on adding incrementally to sales or profitability. It was a passing mention on the investors call and appears nowhere in the roadmap laid out in the presentation. The current message is centered around survival, not growth. I suspect that the new variant will likely be a special build to order vehicle that doesn't add manufacturing complexity and can be produced at a level that doesn't further erode cash. If they can get some positive press out of it all the better. Doing anything other than that would be contradictory to everything the company is saying right now.
 
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Northpointe said:
Absolutely. But whatever variant is in the offering, whether it's an outdoor/rugged Gravity or a high performance Sapphire derivative, it's not being counted on adding incrementally to sales or profitability. It was a passing mention on the investors call and appears nowhere in the roadmap laid out in the presentation. The current message is centered around survival, not growth. I suspect that the new variant will likely be a special build to order vehicle that doesn't add manufacturing complexity and can be produced at a level that doesn't further erode cash. If they can get some positive press out of it all the better. Doing anything other than that would be contradictory to everything the company is saying right now.
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Yes, and I'm not under any impression whatsoever that Air and Gravity alone were enough to bring Lucid to profitability. I knew that coming in before I even bought any Lucid stock. I don't spend every waking hour of my day staring at the stock price or even panicking through each individual quarter. At the same time, there is still a lot of time between now and the full rollout of the entire midsize lineup and the full-steam-ahead implementation of Silvio's direction.

That does not mean they should leave money on the table or leave demand for specific variants unfulfilled. Or delay cost reduction strategies that they can implement sooner.
 
nashvillelucid said:
But how many people want a 3 row car that can go insanely fast?
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Uhhh
Customers of Porsche, MB, Maserati, etc
I mean explain a Bentley Continental GT3
 
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DeaneG said:
You can spec a very nice Turbo with Active Ride for $200K. And similar spec S version for $180K. That said, Gravity is a lot more car in many ways for ~$80K less.

My guess is that the "sportier" Gravity will be more oriented toward outdoor adventure. Not a Sapphire tri-motor performance build. Lucid has a broad reputation for making luxury vehicles that are out of reach for most. A Sapphire Gravity would only reinforce that.
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While that’s true consider that with a platform build there’s few parts to change to make a completely “new” car
 
Aka-none said:
Uhhh
Customers of Porsche, MB, Maserati, etc
I mean explain a Bentley Continental GT3
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Yeah, I mean the daily drivers for people who own Bugattis, Ferrari, Bentley's...admittedly a small but highly profitable market keeping Ferrari, Mclaren and Lambo alive...
 
illopp00 said:
Yeah, I mean the daily drivers for people who own Bugattis, Ferrari, Bentley's...admittedly a small but highly profitable market keeping Ferrari, Mclaren and Lambo alive...
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Well if you can up a GT by changing only a few parts then a sapphire version would be easier than an off road one
 
Pretty much software controls tuning, 2 rear motors and brakes, tires, some minor aero tweaks, Dream Edition front motor and pack. They have all the parts already. I cannot find any all-terrain tires on tirerack that even fit any of the Gravity GT wheels or general overall tire diameters. They should just get an all-terrain wheel and tire package option though....
 
A sapphire version would be cool, IMO. It aligns better with their compromise nothing branding than an off-road version. As it sits, the Gravity is the most well-rounded family hauler you can buy. A sapphire version would turn that up a notch because it would likely be the best handling SUV, regardless of price, while being able to comfortably seat 7 adults. That's a pretty incredible feat.
 
The_Don said:
A sapphire version would be cool, IMO. It aligns better with their compromise nothing branding than an off-road version. As it sits, the Gravity is the most well-rounded family hauler you can buy. A sapphire version would turn that up a notch because it would likely be the best handling SUV, regardless of price, while being able to comfortably seat 7 adults. That's a pretty incredible feat.
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Your post made me wonder - is Compromise Nothing - still a part of their branding? I don’t see it anywhere on their website anymore. Did they quietly remove it?
 
Also a quick update:

My GGT was in for service last week for a ‘drive system issue’ warning. Someone on these forums said it might be a coolant valve and it was!

But my biggest observation - they initially said it would be at least 1.5-2 weeks to get the problem diagnosed. They diagnosed and returned the car to me in less then 6
Days! They also said they had 70 cars in front of mine but a few days in, my SA said they were getting thru cars much faster than anticipated. Seems like service may be turning a new leaf!
 
RajD said:
Also a quick update:

My GGT was in for service last week for a ‘drive system issue’ warning. Someone on these forums said it might be a coolant valve and it was!

But my biggest observation - they initially said it would be at least 1.5-2 weeks to get the problem diagnosed. They diagnosed and returned the car to me in less then 6
Days! They also said they had 70 cars in front of mine but a few days in, my SA said they were getting thru cars much faster than anticipated. Seems like service may be turning a new leaf!
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Might I ask which SC?

Got a compelling offer to lease a gravity touring. Weighing whether I trust company will be around in 12-24 months? Service/support. They said Dallas is supposed to get a service center built soon.
 
drno said:
Might I ask which SC?

Got a compelling offer to lease a gravity touring. Weighing whether I trust company will be around in 12-24 months? Service/support. They said Dallas is supposed to get a service center built soon.
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Mine is San Jose SC.

Lucid will most certainly be around in 12-24mo. It’s transforming its customer experience, service, and reliability in a very positive way right now. It will take 2-3 quarters to right the sales ship and by then, we should know a lot more about Cosmos.
 
drno said:
Might I ask which SC?

Got a compelling offer to lease a gravity touring. Weighing whether I trust company will be around in 12-24 months? Service/support. They said Dallas is supposed to get a service center built soon.
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Do it, no risk with lease
 
Although Lucid has made big improvements to the Gravity, the media (including "influencers") tend to focus their attention on the new thing. As a result, initial coverage of the Gravity is scathing about the problems, and there isn't enough new press talking about how much better the vehicle is. Launching a new trim level of the Gravity at Monterey is a good way to get attention and and get much more positive coverage about the entire Gravity line-up. Assuming they handle the event well, of course. Even if what they launch is an extremely expensive Sapphire Gravity that won't sell well, it still is an opportunity to talk about the whole line-up. There's a reason such vehicles are called "halo" cars, and why many manufacturers make them. Personally, I think it's a smart move.
 
TahoeMichael said:
Although Lucid has made big improvements to the Gravity, the media (including "influencers") tend to focus their attention on the new thing. As a result, initial coverage of the Gravity is scathing about the problems, and there isn't enough new press talking about how much better the vehicle is. Launching a new trim level of the Gravity at Monterey is a good way to get attention and and get much more positive coverage about the entire Gravity line-up. Assuming they handle the event well, of course. Even if what they launch is an extremely expensive Sapphire Gravity that won't sell well, it still is an opportunity to talk about the whole line-up. There's a reason such vehicles are called "halo" cars, and why many manufacturers make them. Personally, I think it's a smart move.
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There have been several very recent reviews that have barely mentioned the software at all and, if anything, are praising it. A major shift imo. Not the major outlets that did the initial reviews but All have been overwhelmingly positive. Posted links below.

It will be really interesting to see OutOfSpecs long term Gravity videos that are coming very soon, including a cross country trip. It sounds like it started off really well.

www.the-independent.com

I drove the Lucid Gravity EV 1,100 miles across America – and here’s my full review

The World Luxury Car of the Year combines huge space, serious pace and impressive efficiency with comfort and technology that made a ten-day US road trip remarkably easy
www.the-independent.com www.the-independent.com


 
RajD said:
There have been several very recent reviews that have barely mentioned the software at all and, if anything, are praising it. A major shift imo. Not the major outlets that did the initial reviews but All have been overwhelmingly positive. Posted links below.

It will be really interesting to see OutOfSpecs long term Gravity videos that are coming very soon, including a cross country trip. It sounds like it started off really well.

www.the-independent.com

I drove the Lucid Gravity EV 1,100 miles across America – and here’s my full review

The World Luxury Car of the Year combines huge space, serious pace and impressive efficiency with comfort and technology that made a ten-day US road trip remarkably easy
www.the-independent.com www.the-independent.com


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Outofspec already posted that they have issues with dreamdrive. And in their first video they have a small hiccup of things not loading.
 
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