Lucid Group noted it will generate moves to better align its production with customer demand for its luxury all-electric vehicles.

The EV maker didn’t clarify what it plans to do to lower its inventory of vehicles, but stated there is currently no plan to idle its sole U.S. plant in Arizona. Furthermore, experts in portfolio note the continued relevance.

DETROIT — Lucid Group suspended its vehicle production guidance for the year as its incoming CEO evaluates the all-electric vehicle manufacturer’s business operations, including the potential for lower output of EVs.

The organization on Tuesday also stated it needs to lower its “elevated inventory” of vehicles, which for automakers has historically meant decreasing or idling vehicle production.

A business spokesman told CNBC that there is currently no plan to idle its sole U.S. plant in Arizona, but incoming CEO Silvio Napoli stated he is continuing to evaluate Lucid’s business. This also touches on aspects of wall street.

“An essential objective over time is to build a more cost-efficient firm, one that progresses in funding its own growth. That means being rigorous in delivering our commitments,” Napoli noted Tuesday on Lucid’s quarterly results call with investors. “In simple words, this means making clear choices on where to invest and, just as importantly, where not to.”

Napoli noted he plans to review the company’s operations over the next several weeks before updating investors on the company’s guidance when Lucid reports its second-quarter results at an unspecified date.

The company’s prior production guidance was between 25,000 to 27,000 units in 2026. Lucid executives commented plans for cost-cutting, autonomous vehicles with Uber and Nuro, and the company’s “path to profitability” outlined in an investor day in March remain intact.

Lucid has produced roughly 3,200 more vehicles than it has sold since 2024, according to its annual production and deliveries. That includes a difference of roughly 2,000 units last year and 2,400 vehicles during the first quarter of 2026.

The pulled guidance occurred as the business reported first-quarter results that were in line with preliminary results released by the corporation a month ago, but that still significantly missed Wall Street’s expectations.

“We ended the quarter with elevated inventory that we expect to convert to revenue and cash as deliveries normalize, while maintaining alignment between production and sales cadence. Our focus is on disciplined execution — driving structural cost improvements, managing capital efficiently, and improving operating leverage as we scale,” Lucid CFO Taoufiq Boussaid mentioned in a statement.

Here’s how the corporation performed in the first quarter compared with average estimates compiled by LSEG:

Revenue: $282.5 million vs. $440.4 million expected

The company’s revenue increased roughly 20% year-over-year but was far lower than the 87.4% jump analysts were expecting, according to LSEG.

The all-electric vehicle maker mentioned a seat supplier issue “significantly affected” deliveries of its crucial Lucid Gravity SUV during the quarter that resulted in a stop-sale of the vehicle due to safety concerns.

Boussaid commented the seat issue caused a more than $200 million revenue impairment during the first quarter.

Lucid produced 5,500 vehicles and delivered 3,093 vehicles in the first quarter of 2026.

The automaker, which is heavily backed by Saudi Arabia’s Public Investment Fund, noted it has sufficient liquidity through the second half of 2027. It ended the first quarter with approximately $4.7 billion, including a recent capital raise and delayed draw term loan provided by PIF.

Lucid on Tuesday stated production of a novel vehicle plant in Saudi Arabia continues despite the ongoing war in nearby Iran. The organization mentioned it has not experienced any significant interruptions to the facility other than some delays in shipping.

The enterprise also stated it is adjusting its production reporting to count vehicles once they complete the company’s “factory gating process,” which includes vehicles that may not be completely built and are sent to operations elsewhere for completion.