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

Product and technology highlights

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

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

• Launch of Gravity in Europe was well received, with European expansion a key next step.

• Focus on innovation and best-in-class technology to differentiate from Chinese competitors, with no plans to enter the low-cost segment.

• Next platform to launch end of next year, starting around $50,000, aiming for competitiveness in the mid-size segment.

Supply chain and manufacturing

• Shifted away from exclusive reliance on Chinese rare earth suppliers, securing agreements in Australia and moving toward light rare earths and eventually rare-earth-free drive units.

• Manufacturing in Casa Grande, Arizona, is increasingly automated, with ongoing enhancements to productivity and automation.

• Supplier issues, not labor, were the main constraint on production ramp-up; automation and training are key to scaling.

• Saudi Arabia plant offers sourcing flexibility and cost advantages, supporting mid-size platform cost targets.

Autonomy and partnerships

• Strategic partnerships with Uber and Nuro mark the first step into robotaxis, with Gravity as the initial platform.

• Plans to expand autonomy offerings to personally owned vehicles, with hands-free driving features expected next year and ambitions to leapfrog current market offerings.

• Close collaboration with Nuro provides valuable data and integration experience, informing L4 development for both robotaxis and consumer vehicles.

• Minimal CapEx impact for robotaxi production, with future plans for recurring revenue models based on usage.