Lucid Group Inc Q3 2025 Earnings Call Transcript

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

Question: Ben Kallo - Robert W. Baird & Co Inc - Analyst : Maybe can we start with just where you are with choosing suppliers for the midsize vehicle? And then if you could talk about any kind of overlap that can be leveraged from the Air Gravity suppliers? And then I have a follow-up as well.

Question: Ben Kallo - Robert W. Baird & Co Inc - Analyst : Great. Could you just talk maybe about how you guys are prioritizing capital between what the work you're doing in autonomy and then also pushing forward with your technology manufacturing, just how you prioritize or if you don't look at it that way, then I'd love to hear that, too.

Question: Andres Sheppard-Slinger - Cantor - Analyst : Congrats on the quarter. Marc, I was hoping to maybe get a sense of how the contract with the government of Saudi Arabia, the one up for 50,000 plus, another option for 50,000. If you can maybe give us an update on kind of where that stands. I think in the past, we've said most deliveries to REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 05, 2025 / 10:30PM, LCID.OQ - Q3 2025 Lucid Group Inc Earnings Call that agreement will be the Gravity and then the upcoming Midsize. So I know you're not guiding anything for '26, but should we expect some deliveries to that region next year? Or will that likely come after the completion of the IM2 facility?

Question: Andres Sheppard-Slinger - Cantor - Analyst : Got it. Okay. That's helpful. And then maybe one for Taoufiq. So you've extended your capital runway looks like into first half of 2027 now. I'm curious if you can maybe refresh us on near-term capital needs. Does that -- extension now in the draw facility, does that account for the maturity in September of '26? Or how should we think about that?

Question: Thomas Scholl - BNP Paribas - Analyst : This is Jake on for James. So first, I just wanted to follow up on the NVIDIA partnership. Obviously, you guys set a pretty ambitious goal of being the first company to roll out consumer Level 4 capability. Virtually every major automaker has some form of kind of advanced ADAS program. And after billions of dollars invested, no one has really been able to move past Level 2+. So can you just provide some color on why you think you'll be able to succeed where everyone else has failed?

Question: Thomas Scholl - BNP Paribas - Analyst : And then can you just provide some color on the new vehicle order trends you've been seeing since the expiration of US EV tax credits in October. Obviously, the Air and the Gravity weren't eligible for the 30D credit, but it looks like roughly 65% of your US sales in the third quarter came from leases where people were able to take advantage of the 45W credit.

Question: Tobias Beith - Rothschild - Analyst : I've got three questions, if that's okay. First one is for Taoufiq. The gross margin rate when I adjusted for income from emission credit trading depreciation improved by 8 points quarter over quarter and was possibly flat on a pre-tariff impact basis. My question is, why wasn't leverage on volumes and the impact of product mix visible?

Question: Tobias Beith - Rothschild - Analyst : Okay. I understand. Marc, what is Lucid's plan regarding the localization of production of the Midsize platform, if at all? I appreciate that the global automotive trade is in flux at the moment, but even an expansion of AMP-1's capabilities would probably have a lead time of at least a year if you started tomorrow. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 05, 2025 / 10:30PM, LCID.OQ - Q3 2025 Lucid Group Inc Earnings Call

Question: Tobias Beith - Rothschild - Analyst : Okay. And last question, the PowerPoint, it shows for the first time, I believe, a detailed render of the Atlas propulsion system. It's very impressive. It seems to show that there's a new inverter, redesigned thermal management system. And I know that the Atlas propulsion system was mentioned in your prepared remarks, Marc. But I wondered if I could ask for even more of an update on the Atlas, please, given its importance.

Question: Tobias Beith - Rothschild - Analyst : Can I ask why not do all of the Atlas without rare earth, given it has caused problems for Lucid and the broader industry in the last six months or so?