US electric vehicle manufacturer Lucid Group reported first-quarter deliveries below market expectations, citing a temporary sales halt and recall linked to a supplier-related defect.
The company said it produced 5,500 vehicles and delivered 3,093 units in the quarter ended March 31, falling short of analyst estimates compiled by Visible Alpha, which had projected 5,967 vehicles produced and 5,237 delivered.
Deliveries of the Lucid Gravity were disrupted for 29 days during the quarter due to a quality issue involving second-row seats. The problem stemmed from an unauthorised change by a supplier, prompting Lucid to pause sales and inspect affected vehicles.
Chief Executive Marc Winterhoff said deliveries were particularly impacted in February, when the company halted shipments to address the issue and review vehicles already produced.
Lucid also recalled 4,476 Gravity SUVs built between December 2024 and February 2026 after identifying that seatbelt anchor welds did not meet safety standards.
The disruption highlights an ongoing challenge for Lucid and other electric vehicle startups: converting production into actual deliveries. The company continues to face a gap between the number of vehicles it builds and those it is able to deliver to customers, particularly as demand conditions soften.
Despite the setback, Lucid reaffirmed its full-year production guidance of 25,000 to 27,000 vehicles, suggesting confidence that the impact will be temporary and offset in subsequent quarters. The company produced 17,840 vehicles in 2025.
Lucid has also pointed to broader supply chain pressures affecting its operations, including high tariffs on imported auto parts, semiconductor shortages, constrained supplies of rare earth materials and disruptions linked to a fire at an aluminium supplier.
The results underscore the fragility of supply chains in the electric vehicle sector, where even isolated component issues can disrupt production schedules and weigh on quarterly performance.
Source: EVMagz