Latest news with #Winterhoff
Yahoo
4 days ago
- Automotive
- Yahoo
Lucid Just Made a Bold EV Battery Move That Could Outsmart Global Tariffs
Lucid Group (NASDAQ:LCID) just signed its third major graphite supply agreementand it's not just about batteries. It's a calculated move to shield its EV business from rising geopolitical volatility and supply chain fragility. The deal is with Graphite One, a Vancouver-based firm aiming to mine in Alaska and process in Ohio. It builds on Lucid's earlier agreements for synthetic graphite and foreign-sourced material refined in Louisiana. Taken together, these deals could help Lucid tighten its grip on a U.S.-centric battery supply chain, one that's increasingly becoming a strategic moat. Warning! GuruFocus has detected 4 Warning Signs with LCID. We need so much of it, interim CEO Marc Winterhoff told Bloomberg, referring to graphite's critical role in EV batteries. According to Winterhoff, demand certainty is key to making U.S. graphite mines viableand the auto industry might be the one with enough scale to unlock that equation. The company's supply chain realignment began before any new tariff push by Donald Trump, but it now looks especially well-timed. Lucid is expected to showcase the partnership this week at the Alaska Governor's Energy Summit, as battery minerals take center stage in both industrial and policy conversations. Graphite One's CEO Anthony Huston called the agreement a step toward strengthening U.S. industry and national defense, and the market narrative may soon reflect that. As tariffs re-enter the political spotlight and foreign sourcing gets more complex, Lucid's vertical integration strategy could resonate with investors looking for long-term resilience in the EV space. With all eyes on battery input costs and energy security, this isn't just a procurement updateit's a potential signal of where the next competitive advantage in electric vehicles might be built. This article first appeared on GuruFocus.
Yahoo
09-05-2025
- Automotive
- Yahoo
Lucid leans into US manufacturing, Gravity launch amid market headwinds
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. Lucid Motors is pushing forward with increased U.S.-based battery-electric-vehicle production, technology licensing efforts, and the retail rollout of its second model, the Gravity SUV, as it seeks to weather tariff uncertainty and a shifting demand environment. On its first-quarter 2025 earnings call May 6, Lucid reported deliveries of 3,109 vehicles, a 58% increase from Q1 2024 and the company's fifth straight quarterly delivery record. Revenue hit $235 million, up 36% year-over-year, bolstered by a surge in regulatory credit sales. Lucid's quarterly net loss of $366 million bettered Q1 2024's $680 million loss, and it reaffirmed plans to more than double production volume this year. Despite software-related delays that slowed some Gravity handoffs and Studio test-drive availability – Studio being the automaker's answer to showrooms – CEO Marc Winterhoff emphasizes that the SUV's rollout is gaining traction. 'Three-quarters of orders are coming from customers new to the Lucid brand,' he says. Lucid also sees strong early demand for the limited-run Gravity Dream Edition and notes its average selling prices (ASPs) are expected to rise as Gravity volumes are forecast to increase in the second half of 2025. The Gravity joins the Lucid Air sedan in the upstart automaker's lineup, which has been lauded by many for its extreme range and power. It was named a Wards 10 Best Engines & Propulsion Systems' winner in 2022 and 2023. However, as luxury sedan sales have cratered as customers, both in the mass-market and premium/luxury sectors, increasingly embrace utility vehicles, Lucid sales volume has been low. Lucid sold 10,421 vehicles worldwide in 2024, far behind the 1.8 million rival Tesla delivered. The Tesla Model Y SUV, not only the No.1-selling BEV in the world, but the top-selling model overall, accounted for roughly 1 million units of Tesla's 2024 global sales. Lucid executives addressed growing concerns over the impact of auto tariffs and rare-earth material restrictions. While acknowledging a fluid global trade environment, Winterhoff cites Lucid's vertical integration and U.S.-based manufacturing as a competitive advantage. 'We build all our vehicles and major components – including battery packs and drive units – right here in Arizona,' he says of the Casa Grande location. 'This gives us flexibility many other OEMs don't have.' Lucid is also localizing the supply of key inputs. The company is transitioning to Panasonic's new Kansas battery facility and sourcing domestic graphite through partnerships with Graphite One and Sera Resources. Still, CFO Tofiq Kadhim notes Lucid expects gross margin headwinds of 8% to 15% due to tariffs, up from the 7% to 12% range projected in February. 'This is a challenging situation,' he says, 'but adversity is not new to Lucid.' Beyond vehicle sales, Lucid is actively exploring technology licensing and OEM partnerships, highlighting interest in its powertrain systems and software-defined-vehicle architecture. The automaker also confirms that it has held advanced discussions with several automotive manufacturers seeking to leverage Lucid's Arizona manufacturing footprint for U.S.-based production. 'Some OEMs now see our technology as complementary to their own scaling needs,' Winterhoff says. 'We're not just building cars – we're enabling the next wave of electrification.' Lucid recently acquired key assets from Nikola's Arizona operations for $17 million – a move it says adds strategic flexibility, expands capacity, and brings 250 new employees with EV expertise into the fold. Lucid reaffirmed its 2025 production target of 20,000 vehicles, up from 9,029 in 2024, with Gravity expected to account for most of the incremental volume. The automaker said Air volumes will likely remain stable year-over-year. It also emphasized continued investment in its midsize platform, scheduled to launch in late 2026. That vehicle is expected to drive Lucid's push toward profitability by increasing production scale and lowering fixed-cost absorption. Lucid ended the quarter with $5.76 billion in liquidity, which executives said should carry operations through the second half of 2026. Capital expenditures for the year are projected at $1.4 billion, covering expansion at both its AMP-1 vehicle assembly facility in Arizona and AMP-2 assembly plant in Saudi Arabia. 'Our approach is to scale responsibly while staying capital-disciplined,' Kadhim says. For U.S. dealers watching the luxury EV space, Lucid's strategy offers some notable signals: U.S. production is emerging as a retail advantage in a tariff-laden landscape The Gravity SUV is showing strong early demand and brand-expansion potential Lucid's push into tech licensing and OEM partnerships could alter how EV platforms are sourced and supplied domestically Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-04-2025
- Automotive
- Yahoo
Is Lucid Eating Tesla's Lunch?
The automotive industry is highly loyal, and one of the biggest challenges is "conquesting" consumers, which is simply one brand taking a customer from another. Since Tesla (NASDAQ: TSLA) vehicles hit the roads, the company has thoroughly dominated the U.S. market in sales volumes, but a recent backlash against the once unflappable brand may have sent consumers fleeing to a competitor you might not expect: Lucid (NASDAQ: LCID). Lucid's interim CEO made some very intriguing comments recently, and investors should take note of them. In just about every measure possible, Tesla dwarfs its smaller rival Lucid, but that hasn't stopped a recent uptick in consumers swapping brands, according to Lucid's interim CEO Marc Winterhoff. "Tesla buyers always were the source of our sales because they were already used to using electrical drivetrains, and they look for an opportunity to have something else, something better," Winterhoff said, according to Yahoo Finance. "And now, with recent changes, obviously, since the beginning of the year, we see a clear uptick of interest in Lucid from Tesla buyers because they're looking for another option." Of course, Winterhoff is alluding to the brand awareness faux pas Tesla has faced this year. Tesla CEO Elon Musk, with his vocal support of President Trump and new role as the White House's DOGE commission, has seemingly driven away some of Tesla's customer base, leading to a rare sales decline for the company. That, in combination with, or perhaps the reason for, slower than expected sales of the new Model Y, has hammered Tesla's stock, which is down 43% year to date as of this writing. The good news, or bad news, depending on which side you find yourself backing, is that Lucid's recently launched Gravity SUV could ramp up the pressure on its rival. That's because demand for SUVs in America is still high, and the Gravity price tag checks in lower than its Air sedan at roughly $79,900. In fact, then-CEO Peter Rawlinson explained that the Gravity would enter a market that's six times larger than that of the Air sedan. First-quarter delivery data seems to back up the notion that Lucid is gaining momentum, perhaps at Tesla's expense. Lucid announced its best-ever quarter for deliveries, recently checking in at 3,109 vehicles. That mark was good for a 58% gain from the prior year and slightly ahead of its previous record of 3,099, set during the fourth quarter of 2024. It's only going to get better throughout 2025 as production and deliveries of the new Gravity SUV ramp up. Lucid noted that it will resume consumer deliveries of the Gravity by the end of April. It had been producing vehicles for employees, friends, family, and showrooms for test drives. On the flip side, Tesla reported a 13% decline in deliveries during the first quarter as compared to the prior year. Many analysts blamed the previously mentioned political role of Elon Musk, as well as an aging lineup and shortages of the freshened Model Y. However, some are taking it a bit further with Stephanie Valdez-Streaty, director of industry insights for Cox Automotive. "Without a significant change in strategy to develop new products with widespread appeal, Tesla's high-water mark as an automaker may be in the past," she said, according to Automotive News. Where there's smoke, there's fire, and it's clear that Tesla has hit a speed bump due to previously mentioned developments. Lucid has long claimed to have the most advanced EVs in the industry, and with the uptick in interest coming from Tesla owners jumping to Lucid, there may be truth to those claims. Ultimately, one quarter doesn't make a trend, and while Tesla has hit a decent-sized speed bump recently, it should recover just fine long-term. Right now it sure looks like Lucid finally has a little momentum, and some of it is certainly coming at Tesla's expense. Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $469,399!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $590,231!* Now, it's worth noting Stock Advisor's total average return is 731% — a market-crushing outperformance compared to 146% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 5, 2025 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Is Lucid Eating Tesla's Lunch? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
01-04-2025
- Automotive
- Yahoo
Why Lucid Group Stock Is Soaring Today
Shares of Lucid Group (NASDAQ: LCID) are climbing on Wednesday. The luxury electric vehicle (EV) maker's stock gained 3.3% as of 2:47 p.m. ET and was up as much as 9.9% earlier in the day. The rise comes as the S&P 500 and Nasdaq Composite lost 0.5% and 0.2%, respectively. It was reported today that the EV start-up is seeing increased interest from former Tesla owners as its second vehicle enters production. Lucid's interim CEO Marc Winterhoff revealed in an interview that Lucid is experiencing an "uptick of interest" from Tesla owners looking for alternatives. "Tesla buyers always were the source of our sales because they were already used to using electrical drivetrains, and they look for an opportunity to have something else, something better," Winterhoff said following an event for Gravity SUV -- the company's newest entry -- at the company's New York City showroom. With President Trump's new wave of tariffs coming and those already placed on auto parts, many automakers have seen their stocks hit. Lucid, however, may avoid the brunt of the trade levies as the company manufactures its cars almost entirely in the U.S. This is largely true of Tesla as well, so the advantage is over a legacy manufacturer rather than its direct rival. Lucid still faces significant challenges despite the optimism. The Gravity SUV will start at $79,900. This means its market remains relatively niche. The company needs to figure out how to manufacture a vehicle that a broader chunk of the market can afford, or it will have a difficult time growing sales. Furthermore, the company is still operating at a loss. I have my doubts that it can cut costs to a point where it can deliver the kind of earnings investors need to justify the stock's current price. Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $664,271!* Now, it's worth noting Stock Advisor's total average return is 812% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 1, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Lucid Group Stock Is Soaring Today was originally published by The Motley Fool
Yahoo
31-03-2025
- Automotive
- Yahoo
EV maker Lucid is capturing Tesla buyers at a higher rate as its new Gravity SUV hits showrooms
EV maker Lucid Motors (LCID) is seeing a light at the end of the tunnel — and former Tesla (TSLA) buyers may be the reason. The California-based company's second product, the Gravity SUV, is now on sale, with deliveries to a wider swath of customers beginning in April. Interim CEO Marc Winterhoff says there are new buyers coming in for both the Gravity SUV and Air sedan because customers want an alternative to Tesla. 'Definitely,' Winteroff said when asked if more Tesla owners were trading in their vehicles for Lucid EVs. Yahoo Finance spoke to Winterhoff following a Gravity event at the company's showroom in New York City's trendy Meatpacking District. 'Tesla buyers always were the source of our sales because they were already used to using electrical drivetrains, and they look for an opportunity to have something else, something better," he said. "And now, with recent changes, obviously, since the beginning of the year, we see a clear uptick of interest in Lucid from Tesla buyers because they're looking for another option.' Winterhoff was alluding to the brand issues Tesla is facing of late. In addition to slower-than-expected new Model Y sales, CEO Elon Musk's vocal support of President Trump and his role in the White House's DOGE commission have also come at a price — the alienation of Tesla's customer base. Winterhoff said some customers were trading in Tesla Model 3s for Lucid's luxury Air sedan, which in some cases cost twice as much. The Gravity could have an even stronger effect, as the Air sedan was always seen as a niche product, rather than a volume mover. 'Americans want to have an SUV. That's the quintessential American car, the size of the pickup truck. It's a much larger addressable market for us, and therefore much larger demand,' Winterhoff said about the Gravity. If all goes well, Lucid is aiming to produce 20,000 vehicles by year end, and even at that level Winterhoff expects the Gravity to be supply, rather than demand, constrained. While Winterhoff is optimistic, it must be noted that the cheapest Gravity will start at a pretty hefty $79,900, just under the price cap for the federal EV tax credit; however, if leased the price cap doesn't limit usage of the EV tax credit. What will also impact sales is competition from the likes of Tesla's Model X; Cadillac's full-size EVs, like the Vistiq and Escalade IQ; and even hybrid and traditional gas offerings from German luxury brands BMW, Audi, and Mercedes. Lucid has one trick up its sleeve compared to foreign competitors: All of its vehicles are produced in Arizona, and thus are immune to President Trump's 25% tariffs on foreign cars. And it's not just the cars; key powertrain components are also built in the US, even if some parts like battery cells are imported from elsewhere. 'We are very highly vertically integrated. So we're building our battery modules, building our battery packs also in Arizona,' Winterhoff said. 'We have done this, you know, bringing manufacturing stateside as much as possible [even before the tariffs].' Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram. Sign in to access your portfolio
