Lucid Group Inc at Morgan Stanley Laguna Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Adam Jonas - Morgan Stanley - Analyst : <_ALACRA_META_ABSTRACT>It really might be. Like I was seriously impressed. And look, is it cheap? Depends what you mean by that, but I actually think it's -- if what I drove was anywhere near $100,000 for that level of performance, 828 horsepower, and 800 and whatever meters of torque and that -- those materials and that comfort level and that suspension. Look, I drive Teslas, like I've been driving Teslas for five years and this thing is just -- this is -- it's insane. So put your order in. Like how -- if someone were to order one now, how long would it take to get it?

Question: Adam Jonas - Morgan Stanley - Analyst : It's at my budget. My boss is in the room, so (inaudible). REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 12, 2025 / 2:45PM, LCID.OQ - Lucid Group Inc at Morgan Stanley Laguna Conference

Question: Adam Jonas - Morgan Stanley - Analyst : I said the same. I'm like, there are no compromise (inaudible).

Question: Adam Jonas - Morgan Stanley - Analyst : So what were some of the -- what are some of the messages Munich that you'd share with the audience here in terms of just either your market or the kind of transition of Europe to electrification, where you're just kind of scratching the surface there now? The Chinese presence, that kind of -- which is obviously very consequential in the market that you're maybe not at the price -- at the luxury level you are right now, but in many of the technologies that you delve in? And then what are your key messages in terms of what's relevant for the equity story over the next 6 to 12 months?

Question: Adam Jonas - Morgan Stanley - Analyst : Okay. Just going back to the Gravity. You had some production supplier issues initially, but it sounds like you're moving past that. You had targeted kind of a significant increase in production or you saw a significant increase in production in your outlook for the second half. Just confirming, is that -- how is that progressing? Is it in line with your expectations?

Question: Adam Jonas - Morgan Stanley - Analyst : We were -- just on a panel on the stage right before you arrived here. We're talking about all sorts of issues in the relationship with China and US and policy and on-shoring. The topic of rare earths came up, as well. I didn't know what lessons you've taken away or your comments on how significant the rare earth issue is for things like permanent magnet electric motors. I know you've mentioned using different suppliers and other metals and other ways, but elaborate on kind of where we are there? How serious that is?

Question: Adam Jonas - Morgan Stanley - Analyst : I'd like to move to autonomy. I mean, there's a lot of interesting things. I mean, I'd like to tell clients here cars, particularly electric cars, a software-defined vehicle architecture, electric architecture basically just car-shaped robots. And I know in the first -- while the Air was your first halo vehicle and to get the brand out there and uncompromising luxury and kind of a lot of learnings, right, particularly on costs. But one area your team felt you could do better in was like the autonomy side.

Question: Adam Jonas - Morgan Stanley - Analyst : Particularly given the software defined and OTA updatability of the car. So I don't think it's -- when you see the Gravity, you don't really see the massive changes underneath the skin in terms of simplification and advancement of that architecture. So it opens up a whole new area for you to engage with partners like Nuro and Uber where you kind of struck some partnerships there. When you announced the Uber-Nuro partnership for basically robotaxi and fully autonomous vehicles, you said it was only the first step for Lucid into robotaxis. What sort of vision do you have when you think out three to five years on this? Are you -- and are you in discussion with other potential partners? And how is that going?

Question: Adam Jonas - Morgan Stanley - Analyst : And most efficient in terms of those miles for kilowatt hour.

Question: Adam Jonas - Morgan Stanley - Analyst : That will be really important just for feedback. I mean, as I'm driving this incredible car that -- loved the square wheel, the [squeel], I don't know, whatever you call it. I like it. You see there's the people monitoring right there and then there's also near the mirror as well. So you can tell the car is set up for like just let it take you, let it drive you.

Question: Adam Jonas - Morgan Stanley - Analyst : And I think a lot of your customers that will migrate a subset of your conquest, will come from Tesla's where many of the people who would be able to afford Gravity probably had full self-driving as well. And just from my own experience, if you have that, if you have full self-driving, it's really tough to give up. So how close are we then? How -- what would be that step and what are those milestones so you can kind of get the training and/or system to kind of get -- because you see the body there. I know the hardware is there. But when do you think you're actually able to have that and commercializable?

Question: Adam Jonas - Morgan Stanley - Analyst : So going back to the Nuro, the robotaxi partnership, can you tell us more about the economics or what investors should expect kind of as you roll that out, either in terms of numbers or commitments from you that might affect your CapEx and [R&D LA]. just things that will may be relevant for a 2026 horizon? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 12, 2025 / 2:45PM, LCID.OQ - Lucid Group Inc at Morgan Stanley Laguna Conference

Question: Adam Jonas - Morgan Stanley - Analyst : I'm curious, have you experienced the Xiaomi, like XU-7 or (inaudible) that you have? Can I ask how recently this might have been?

Question: Adam Jonas - Morgan Stanley - Analyst : Okay, that's (inaudible). So you drove it?

Question: Adam Jonas - Morgan Stanley - Analyst : What do you think? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 12, 2025 / 2:45PM, LCID.OQ - Lucid Group Inc at Morgan Stanley Laguna Conference

Question: Adam Jonas - Morgan Stanley - Analyst : I mean, like if you're still superior to the YU7, but it's priced half of your car, that's going to be --

Question: Adam Jonas - Morgan Stanley - Analyst : Okay.

Question: Adam Jonas - Morgan Stanley - Analyst : Easy comp.

Question: Adam Jonas - Morgan Stanley - Analyst : Okay. Let me just be a little devil's advocate because obviously, in your first iteration or two, like profitability is not sustainable, right? You can't lose tens of thousands of dollars of vehicles on a car and have them does this long term. You know that, we know that. Elon at Tesla, he sells 1.7 million, 1.8 million vehicles, probably a little bit less than that this year, but it's a better part of 2 million vehicles. And he's -- so he's -- in terms of scale outside of China, no one can really touch this guy, right? And his gross margins are like low- to mid-teens, and as operating margin is basically zero, particularly when you strip out some of the downstream servicing and stuff. So if Elon is unable to make a profit at an operating level, selling hundreds and hundreds of thousands or a couple of million of these things at a $50,000 price point. What makes -- what gives you the confidence that you can be like we got it from here. And we could sell a $50,000, $60,000 car and make a profit.

Question: Adam Jonas - Morgan Stanley - Analyst : I would agree.

Question: Adam Jonas - Morgan Stanley - Analyst : You're not throwing a target out.

Question: Adam Jonas - Morgan Stanley - Analyst : But Marc, do you think -- is the base case for Lucid that you do it alone, that you are capitalizing and running the company and recruiting and kind of strategizing that Lucid will commercialize a midsize vehicle. And at that price point, it would -- you would need to be in several hundred thousand units to kind of be -- to match that price point with the supply and demand.

Question: Adam Jonas - Morgan Stanley - Analyst : Is the plan -- we are good, we're going to capitalize this and be on our own or where does that (inaudible) open us to partner with technology partners on the autonomy side, or even production partners on the manufacturing side. How do you think about that?

Question: Adam Jonas - Morgan Stanley - Analyst : I'm watching your facial expressions very closely.

Question: Adam Jonas - Morgan Stanley - Analyst : As I was driving around Laguna area in the Gravity, experiencing the massage seats on deep tissue mode. It's deep. It's deep. I was thinking this is a really -- this is like a tour de force. Like I want to have like a meeting. Like I would stay in here for 12 hours and just like meet with CEOs of other companies and say, what can we do? What do you think? And really did get the sense that you designed the vehicle, not just to create a wonderful consumer experience, but also to kind of show what you're capable of. And the fact that it's done in Arizona is pretty sick, and it's absolutely incredible. So let's talk about then your largest shareholder, King of Saudi Arabia, through various entities. You're a controlled company. Just from my perspective, when I talk to clients are like, well, at least they have Saudi to give them money. I'm like, yeah, the money, that was nice, but that does -- you don't win with the money to me, and -- so I'd like your reaction to this. I think it's the strategic value that your largest shareholder, your controlling shareholder can provide to you. You mentioned the example of Aston Martin and others and maybe possibly being helpful with Uber where they're on the cap table. They're on page 1 as well. How -- am I overestimating that? Am I going too forward that potential further strategic value of your largest shareholder and how that could help shape the future for Lucid? Or kind of how are you -- what's your say on that?

Question: Adam Jonas - Morgan Stanley - Analyst : We've got about 5 minutes or so left. We have some questions here. We got a mic up here. Microphone? No? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 12, 2025 / 2:45PM, LCID.OQ - Lucid Group Inc at Morgan Stanley Laguna Conference Unidentified Participant I wanted to ask a little bit more on the AV side. I'm super excited about talking about the L2+ stuff that's going to come out next year and hopefully leapfrog. But a little surprising, the robotaxi stuff partnering with Nuro and I guess, I wanted to understand how you guys see the pathway for you guys alone as Lucid to go from L2+ to L4. Is there an ambition to have the L4 yourself over time, and just kind of riff a little bit there.

Question: Adam Jonas - Morgan Stanley - Analyst : You can't leave us there. You said the Level 4 [platform] is something that's not just robotaxis?

Question: Adam Jonas - Morgan Stanley - Analyst : Okay. Like for example?

Question: Adam Jonas - Morgan Stanley - Analyst : For -- remains for personal owned vehicles. Okay. I thought you were talking about aviation or something like that. Forgive me, sir. I got excited.

Question: Adam Jonas - Morgan Stanley - Analyst : Thought you're about to announce a humanoid effort here. All right, there's a question back here. Unidentified Participant Just wanted to understand your partnership with Uber and Nuro a little bit more. Could you maybe talk to how your engineers are working with Nuro on the robotaxi platform there? Just wanted to understand a level of engagement and how that could inform your L4 strategy too?

Question: Adam Jonas - Morgan Stanley - Analyst : Any other questions? So just to kind of wrap up, for me I'd like to take us to mentally to Casa Grande, Arizona. And what's your -- given your automotive experience, I'd be curious to your lens of how you feel the manufacturing is going there, the quality, the rate of change in productivity. Because we have -- [Chris] and I here who runs our cap goods team, onshoring, reshoring is a big -- is a really big theme. I don't think it's appreciated by enough investors, how unstoppable it is. But you're an interesting, you're on that kind of the bleeding edge of this of making a high-tech robotic product in Arizona. It's not -- with probably workers that many of them have never made products like that. So in terms of talent acquisition and training and vocational training and productivity and labor, kind of how -- what are some of the things if you were presenting to like committee on US onshoring for advanced manufacturing and technology with Elon and others, what would be your kind of contribution to that discussion from your learnings?

Question: Adam Jonas - Morgan Stanley - Analyst : Just from aerospace legacy there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 12, 2025 / 2:45PM, LCID.OQ - Lucid Group Inc at Morgan Stanley Laguna Conference

Question: Adam Jonas - Morgan Stanley - Analyst : Great. Marc and Lucid team, thanks for coming in from (inaudible) to spend some time with us this morning. Best of luck.

Question: Adam Jonas - Morgan Stanley - Analyst : Got it.