Lucid to Cut 12% of US Workforce Before $50,000 Midsize EV Launch

Lucid announced a 12% US workforce reduction as it prepares its $50,000 midsize EV platform and expands robotaxi plans with Uber and Nuro. Read details.

Lucid Motors has announced a 12% reduction of its U.S. workforce, describing the move as a step to streamline operations and improve efficiency ahead of its next phase of growth. U.S. media reports suggest the cuts could affect roughly 800 employees out of a workforce of about 6,800.

The company stressed that hourly production workers in Arizona — including manufacturing, logistics, and quality roles — are not impacted. In an internal memo, management said Lucid’s core priorities remain unchanged: launching its midsize platform, advancing software and autonomous driving systems, and expanding sales of the Air and Gravity models across existing and new markets.

The layoffs come despite relatively solid operational performance at the end of the year. In the fourth quarter, Lucid produced 8,412 vehicles and delivered 5,345 units to customers, standing out in a U.S. EV market that has faced softer demand following the expiration of the $7,500 federal tax credit.

Financially, however, the company continues to operate under pressure. For the third quarter of 2025, Lucid reported $336.6 million in revenue and liquidity of about $4.2 billion. Including an expanded delayed draw term loan facility, available liquidity is estimated at approximately $5.5 billion. Previous disclosures have also pointed to substantial net losses, underscoring the push to reduce costs and improve gross margins.

Much of Lucid’s strategy hinges on its upcoming midsize platform. According to CFO Taoufiq Boussaid, the lineup will include three models positioned “in the heart of the market”, starting at around $50,000. The first vehicle is expected to be a crossover SUV aimed squarely at the segment led by the Tesla Model Y. Unlike the premium Air and Gravity, the new vehicles will be built on a scalable architecture designed to lower production costs.

Production of the midsize models is planned at Lucid’s facility in Saudi Arabia, with manufacturing targeted to begin in 2026. Saudi Arabia’s Public Investment Fund remains a key backer and has previously provided additional funding, including $1.5 billion. The company is also preparing for its Investor Day on March 12, 2026, where it plans to outline its strategic roadmap, core technologies, and further details on the midsize program.

Autonomous mobility represents another growth vector. Lucid has partnered with Uber and Nuro on a plan to deploy at least 20,000 Gravity SUVs equipped with the Nuro Driver over six years. Uber intends to invest $300 million as part of the agreement, with initial deployments expected to begin in 2026.

Despite these initiatives, Lucid’s market valuation remains far below its 2021 peak. Financial data platforms currently estimate the company’s market capitalization at roughly $3–3.3 billion. In that context, the workforce reduction appears less a retreat from ambition and more an effort to align costs with a transition toward higher-volume, more affordable vehicles.

Whether the shift into the midsize segment and the robotaxi partnership can materially change the company’s trajectory may become clearer after the March Investor Day. For now, Lucid is attempting to balance production growth, technological development, and financial discipline as it enters a decisive stage.