Lucid has postponed the launch of its first midsize vehicle, the Cosmos electric SUV, until 2027 as the company focuses on improving product quality and reducing costs. The announcement came during an earnings call in which CEO Silvio Napoli said the automaker wants to avoid repeating the quality issues experienced with the Air sedan and Gravity SUV while navigating a broader restructuring effort following a second-quarter net loss of $1 billion.
Lucid Pushes Cosmos SUV to 2027
Lucid had been expected to unveil the Cosmos sometime this year, but the company has delayed the vehicle’s launch until 2027. The midsize electric SUV is expected to start at just below $50,000, positioning it to compete with mid-range Tesla Model Y variants.
The Cosmos will become Lucid’s first mainstream vehicle after the full-size Air sedan and Gravity SUV, expanding the company’s lineup beyond its current full-size models.
“My objective is to launch the car when it is ready with top quality,” Napoli said during the earnings call, according to Automotive News. “In the past, mistakes were done. I want to make sure they’re not repeated here.”
Quality Remains a Priority
Lucid previously encountered software, hardware, and mechanical issues with both the Air and Gravity. The 2022 Air sedan alone was recalled 14 times before the company addressed some of its early problems.
The additional development time is also expected to help Lucid prepare its Saudi Arabia factory to produce the Cosmos, although that effort also depends on supplier readiness in the region.
Lucid Reports $1 Billion Second-Quarter Net Loss
The launch delay comes as Lucid continues implementing a restructuring plan aimed at improving its financial position. The company reported a second-quarter net loss of just over $1 billion, compared with $539 million during the same period a year earlier.
Lucid said it plans to save $1.4 billion in cash this year. The plan includes $500 million in capital spending, approximately $200 million in operating expenses, and between $600 million and $800 million through inventory reductions.
As part of those efforts, the automaker will reduce production of the Air and Gravity during the second quarter to better align manufacturing with customer demand.
“We need to be direct about the scale of the challenge. Lucid continues to consume a significant amount of cash each quarter,” Napoli said. “That level of cash burn is not sustainable and bringing it down is an immediate priority.”
Cosmos Remains a Key Future Model
With the Cosmos now scheduled for a 2027 launch, Lucid’s immediate focus remains on strengthening its financial position while preparing its manufacturing operations and supply chain for the new vehicle.
The delay means the company’s lineup will continue to consist of the Air sedan and Gravity SUV for now, while work continues on bringing the Cosmos to market.
