Lucid attributes Q1 sales decline to seat supplier disruption

Lucid Group ended 2025 with strong momentum, doubling its vehicle production compared to the previous year and posting a 55% increase in sales. However, that progress slowed as the first quarter of 2026 began.

The company, known for producing the Air sedan and the Gravity SUV, reported on Friday that it sold 3,093 vehicles during the first quarter. This marked a 42% decline compared to the previous quarter and was also about 0.5% lower than the same period last year. During the same timeframe, Lucid manufactured significantly more vehicles, totalling around 5,500 units.

Luciemphasised that the gap between production and deliveries was not due to weak demand. Instead, the company pointed to a quality issue involving a supplier responsible for second-row seating components. This issue disrupted deliveries of the Gravity SUV for 29 days, creating a bottleneck in shipments.

The supplier-related problem also led Lucid to recall more than 4,000 Gravity SUVs. The company informed the National Highway Traffic Safety Administration that it had identified improperly welded anchors in the second-row seat belts, raising safety concerns.

Lucid spokesperson Nick Twork confirmed that the decline in sales was directly tied to the supplier disruption. He explained that an unapproved manufacturing change by the supplier prompted Lucid to halt Gravity SUV sales for most of February. The pause was implemented to ensure vehicles met quality standards before deliveries resumed.

Twork also highlighted that the company’s performance outside of the disruption remained strong. He noted that after achieving eight consecutive record quarters, Lucid delivered solid results in both January and March, nearly reaching year-over-year growth based on those months alone.

In its latest securities filing, Lucid stated that the supplier issue has now been resolved. The company expressed confidence that the disruption will not affect its broader production targets.

Lucid reaffirmed its previously announced guidance to produce between 25,000 and 27,000 vehicles in 2026. For context, the company built 18,378 electric vehicles in 2025, indicating it is targeting up to 47% growth this year.

The timing of the supplier issue comes as Lucid prepares for a significant expansion of its product lineup. The company is preparing to manufacture its first vehicle on a new, lower-cost platform to reach a wider market. Lucid has indicated that this upcoming model will be priced at around $50,000.

At that price point, Lucid will compete directly with vehicles such as the Rivian R2, Tesla Model Y, Tesla Model 3, and the Chevrolet Equinox EV, placing it squarely in the increasingly competitive mass-market EV segment.