Lucid explores partnerships as automakers eye its Arizona manufacturing capabilities

Lucid Group Inc. is garnering automaker interest in its technology and manufacturing capabilities at its Arizona assembly plant, the California-based electric vehicle startup’s top executive said Tuesday.

Lucid (Nasdaq: LCID) is engaging in a “number of new conversations” with other automakers looking to leverage the electric vehicle company’s Casa Grande plant amid uncertainty over tariffs and efforts to onshore auto manufacturing, Lucid CEO Marc Winterhoff told investors and analysts on the company’s first quarter earnings call.

“It’s still early and talks are preliminary, but the president and the administration want to have a strong manufacturing sector in the U.S., and we are looking at potential ways we can leverage our assets,” Winterhoff said. “The recent purchase of certain Nikola assets gives us further optionality, while adding hundreds of more American jobs.”

Lucid acquired Nikola Corp.’s Coolidge manufacturing facility and its Phoenix headquarters for more than $30 million in a bankruptcy auction held in April. The deal adds more 884,000 square feet to Lucid’s real estate footprint in Arizona, the Business Journal previously reported.

“We paid approximately $17 million in cash, plus the assumption of their two Arizona leases — truly a great deal that allows us to gain assets that would have otherwise been significantly more costly by a huge factor,” Winterhoff said. “For context, these assets are valued at hundreds of millions of dollars.”

Lucid has hired 250 Nikola employees

Lucid has hired more than 250 former Nikola employees, all of whom have “strong backgrounds in electric vehicle technology,” which supports the company’s growth plans, he added.

What’s more, Lucid is generating interest from automakers in potentially licensing its electric vehicle technology — including its software and powertrain hardware — to complement their manufacturing capabilities, Winterhoff said.

“Discussions are ongoing and are at varying stages with some much deeper in maturity and some in the early stages,” he said. “While many companies are currently focused on the tariff situation, I’m optimistic about the potential for our technology access and licensing business.”

Lucid is well-positioned to navigate automotive-related tariffs as it produces its electric vehicles, drive units, battery modules and packs at its Casa Grande plant, but the company is still uncertain about potential impacts and is working toward localizing its supply chain, Winterhoff said.

“For example, although our [battery] cells from Panasonic today are produced in Japan, we expect future production at Panasonic’s new production facility in Kansas,” he said. “We’ve also committed to sourcing battery raw materials in the United States, such as graphite from partners like Graphite One and Syrah Resources. We also engaged in a range of other optimization initiatives to mitigate some of the tariff impacts, including collaborating across the supply chain to share challenges and financial responsibilities.”

Lucid reports uptick in year-over-year vehicle sales

Lucid delivered 3,109 cars in the first quarter, up 58% over the prior year quarter, led by demand for Lucid Air, the company’s flagship electric luxury sedan.

Lucid reported a loss of 20 cents on sales of $235 million during Q1, while the Zacks Consensus Estimate had expected a loss of 23 cents on sales of $236.1 million.

Despite an uptick in vehicle sales, the company reported a net loss of $366 million in the first quarter, down from a net loss of $680 million in the prior year quarter, according to a May 6 regulatory filing.

Lucid ended the first quarter with $5.76 billion in liquidity, which extends the company’s runway into mid-2026, ahead of when it plans to begin production of its midsize cars to rival Tesla’s Model Y and Model 3.

In February, Lucid renewed its Gulf International Bank Saudi Arabia credit facility, increasing it by more than $240 million. Last month, the company closed a $1.1 billion convertible senior note offering due in 2030 and used $935.6 million in net proceeds to repurchase $1 billion of its outstanding 2026 notes.

“These actions are part of a deliberate strategy to maintain balance sheet strength while minimizing shareholder dilution and do so in a way that supports our long-term growth ambition,” Taoufiq Boussaid, Lucid’s chief financial officer, said on the company’s earnings call.

Lucid expects to produce 20,000 electric vehicles this year, more than double the 9,029 manufactured in 2024.

Lucid’s stock closed at $2.25 a share on Wednesday, down 3.4%. The company’s first quarter financial results spurred mixed ratings among Wall Street analysts, according to media reports.

Cantor Fitzgerald analyst Andres Sheppard maintained a neutral rating on Lucid’s stock with a $3 price target, stating the company benefits from its differentiated technology and partnership with Saudi investment funds.

Needham also maintained a hold rating on Lucid’s stock, highlighting potential of its Gravity SUV to drive growth. BofA Securties, meanwhile, maintained an underperform rating with a $1 price target, noting that Lucid’s revenue missed estimates.