The Lucid display is seen at the New York International Auto Show on April 16, 2025.
Danielle DeVries | CNBC
NEW YORK — Lucid Group expects to be cash flow positive late this decade as it plans to grow its vehicle lineup and significantly increase its software and technology offerings, the all-electric vehicle maker announced Thursday during its first investor day in nearly five years as a public company.
The EV company aims to accomplish positive cash flow generation through market expansion into midsize vehicles and robotaxis, as well as international expansion in markets such as Europe and Saudi Arabia. It also expects to achieve efficiency gains and software revenue growth with the introduction of improved advanced driver assistance systems and a new Lucid artificial intelligence assistant, executives told dozens of investors and Wall Street analysts on Thursday.
Shares of Lucid were off roughly 6% to 8% during much of the event despite the company giving its most detailed product and expansion plans to date, highlighting the tough market conditions for EV companies.
Lucid’s cash flow target is challenging given the automaker’s current performance and waning demand for EVs in the U.S. While Lucid has been able to increase sales and narrow losses, the company lost $2.7 billion on revenue of $1.35 billion in 2025. It had negative free cash flow of $3.8 billion in 2025, a loss that was roughly 31% larger than a year earlier.
Lucid interim CEO Marc Winterhoff — who unexpectedly took over for company founder Peter Rawlinson last year — said the company’s “north star” is “accelerating to profitability,” reiterating the investor event’s theme. He and other executives declined to disclose an exact year the company aims to be cash flow positive.
The automaker has been trying to increase investor interest in the company as it prepares to launch a new midsize vehicle at the end of this year. Its largest shareholder, Saudi Arabia’s Public Investment Fund, has also changed its investment strategy in the company from capital investment to revolving credit.
Robotaxi, autonomy plans
Lucid on March 12, 2026 previewed plans for a new two-seat rbotaxi that the company is developing off its upcoming midsize electric vehicle platform.
Michael Wayland / CNBC
Lucid on Thursday said it expects to achieve roughly $1 billion in annual incremental, non-vehicle revenue through services such as recurring software subscriptions by later this decade. It also previewed plans for a two-seat robotaxi, including a design concept car, but it did not specify a timeframe for the vehicle.
Company executives spent a significant amount of the event discussing Lucid’s upcoming driving technologies, including robotaxis, and plans to launch a subscription service by early 2027 that will range from $69 to $199 a month, based on capabilities.
“Autonomy plays an outside role in the future of Lucid,” said Kay Stepper, Lucid vice president of advanced driving systems, adding that the company plans to offer vehicles capable of driving themselves under certain circumstances by 2029.
Winterhoff and Uber President and Chief Operating Officer Andrew Macdonald on Thursday announced they are planning to expand a previously announced tie-up for robotaxis to include upcoming midsize vehicles.
Expansion into midsize and autonomy is expected to significantly increase Lucid’s total addressable market, or TAM, from $40 billion for its current Air sedan and Gravity SUV to $700 billion, executives said Thursday.
Winterhoff said he sees the company’s autonomy technologies essentially growing to match Tesla’s current FSD by next year.
Midsize vehicles
Lucid on Thursday said it plans to produce three midsize vehicles, starting with a vehicle called Cosmos this year, followed by a model called Earth and an unnamed vehicle during an unspecified time frame.
“We think these three unique products will give us maximum opportunity to hit the widest audience possible. And that audience is where we are today, but it’s a different audience than our current market,” said Derek Jenkins, Lucid senior vice president of design and brand.
A Lucid-supplied teaser image of its upcoming midsize vehicle behind its current Gravity SUV.
Lucid
The three midsize vehicles are targeted at upscale buyers, younger “trendsetting achievers” and outdoor enthusiasts, Jenkins said. The last would be a direct competitor to fellow EV competitor Rivian Automotive, which is expected to release a new R2 midsize vehicle this spring, beginning with a roughly $58,000 version of the vehicle.
Lucid has said its midsize vehicle is expected to begin at roughly $50,000. That would position it in line with the average transaction prices of new vehicles in the U.S. as well as entry-level models of Rivian’s R2.
Both Rivian and Lucid are attempting to reassure investors that they can not only compete in a troubled EV market but thrive through the expansion of new vehicles and technologies to better compete against U.S. EV leader Tesla. Lucid said its new midsize EV platform will be class-leading in efficiency, something the company has strived to do with all its vehicles.
Both have touted having enough capital to get them through near-term initiatives but their long-term viability is still a major question for investors.
Lucid has said its total liquidity of $5.5 billion, including a roughly $2 billion delayed draw term loan credit facility from Saudi’s PIF, is enough to get through the first half of 2027.
Rivian ended the fourth quarter with $6.59 billion in total liquidity, including nearly $6.1 billion in cash, cash equivalents and short-term investments, as the company attempts to ramp up production this year of its midsize vehicle and new autonomy technologies.
Read the original article here