Lucid Group concluded 2025 with a positive trajectory, doubling its EV production from the previous year and experiencing a 55% sales increase. However, the first quarter of 2026 presented challenges. The company, known for the Air sedan and Gravity SUV, announced that it sold 3,093 vehicles in Q1, marking a 42% decline from the prior quarter and a slight 0.5% drop compared to the same period last year, despite producing about 5,500 vehicles.
Lucid attributed the sales decline and the production-delivery gap to a supplier quality issue involving the second-row seats, disrupting the Gravity SUV deliveries for 29 days. This issue also led Lucid to recall over 4,000 Gravity SUVs due to improperly welded seat belt anchors in the second row, as reported to the National Highway Traffic Safety Administration.
Lucid spokesperson Nick Twork confirmed to TechCrunch that the sales decrease was linked to supplier problems. An unapproved supplier change prompted a stop on Gravity sales through most of February to guarantee vehicle quality before resuming. Twork highlighted Lucid’s success, noting that, despite the setback, strong results in January and March nearly achieved year-over-year growth independently.
In its securities filing, Lucid stated the issue had been resolved and was optimistic about meeting production targets. The company reaffirmed its production guidance of 25,000 to 27,000 vehicles for the year, an increase of up to 47% from 2025’s production of 18,378 EVs.
As Lucid tackles seat supplier issues, it is also nearing the production of its first vehicle on a new lower-cost platform targeting the mass market. This upcoming vehicle is expected to be priced around $50,000, bringing it into competition with the Rivian R2 SUV, Tesla Model Y and Model 3, and Chevrolet Equinox EV.