Lucid Group (LCID) Morgan Stanley’s 13th Annual Laguna Conference summary

Product and market updates

• Gravity SUV received high praise for performance, comfort, and materials, with pricing starting below $100,000 and a lower-priced version around $80,000 planned.

• European launch of Gravity at the IAA Auto Show was well received, with strong demand and a focus on expanding in Europe.

• Production ramping up in Q3 and Q4 after early supplier issues, targeting 18,000–20,000 units for the year, with an internal goal of 20,000.

• No plans to enter the low-cost segment or Chinese market; mid-size platform to start around $50,000, with manufacturing in both Arizona and Saudi Arabia.

• Cost reductions achieved through part simplification and leveraging global supplier networks, especially in Saudi Arabia.

Competitive landscape and strategy

• Chinese automakers are seen as competitive but not leading edge; focus remains on innovation and best-in-class technology.

• Confident in maintaining a premium experience over Chinese competitors, with cost structures for mid-size vehicles competitive outside China.

• Profitability plans rely on targeting premium segments and adding software and recurring revenue streams, not on high-volume, low-cost models.

• Strategic partnerships, especially with technology and autonomy partners, are a key part of future growth.

Technology and autonomy

• Transitioning away from Chinese rare earth suppliers, diversifying to Australia, and developing drive units using light or no rare earths.

• Partnerships with Uber and Nuro mark the first step into robotaxis, with plans to expand to other platforms and recurring revenue models.

• Hands-free driving for consumers to launch next year, aiming to close the gap with competitors and potentially leapfrog current offerings.

• Level 4 autonomy is being developed for both robotaxis and personally owned vehicles, with parallel internal and partner-driven efforts.

• Close collaboration with Nuro provides valuable data and integration experience for advancing L4 capabilities.