Electric Vehicle Maker To Lay Off More Than 300 Employees

Lucid, nan Bay Area-based automaker that sells luxury electrical vehicles, is laying disconnected 319 workers arsenic it sustains billions of dollars successful losses.

Lucid filed a notice pinch nan California Employment Development Department connected Feb. 20 confirming nan layoffs, which will effect labor astatine nan company’s office successful Newark, Calif.

The institution has been struggling to move a profit arsenic request for EVs softens nether nan Trump management and consumers activity retired little prices.

The cuts, which spell into effect successful April, are portion of a 12% simplification successful nan company’s workforce arsenic it looks to boost efficiency.

Lucid employed astir 6,800 group successful 2024.

The layoffs are “designed to streamline our statement truthful we tin run pinch greater ratio and present connected our commitments to gross separator betterment and semipermanent growth,” Lucid said successful a statement.

The institution has been trying to boost its marque pinch a Timothèe Chalamet-centered ad campaign that’s airing connected tv and streaming services. The advertisement promotes nan company’s seven-seat SUV dubbed Gravity.

Lucid named Chalamet arsenic its world brand ambassador past twelvemonth and tapped head James Mangold to sprout a short movie starring nan character and featuring nan Gravity SUV.

“Bold, discerning, and unapologetically original, he represents nan aforesaid tone that defines our brand,” Lucid said of Chalamet.

Its caller trading strategies still haven’t been capable to shield Lucid from a challenging EV environment.

The institution reported $2.7 cardinal losses successful some 2024 and 2025. Its income jumped 55% to 15,841 vehicles delivered past year.

The layoffs will deed Lucid’s engineers nan hardest, pinch astir 140 jobs being trim crossed package and hardware engineering teams. Data scientists, task managers and designers will besides beryllium impacted.

The institution said nan layoffs will not impact its manufacturing unit successful Pinal County, Arizona.

“Our halfway priorities stay unchanged: we are focusing connected nan commencement of accumulation of our Midsize platform... and increasing income of Lucid Gravity and Air crossed existing and caller geographies,” a Lucid spokesperson said.

Lucid was founded successful 2007 nether nan sanction Atieva pinch a attraction connected EV batteries.

It went public arsenic Lucid successful 2021 pinch backing from Saudi Arabia’s sovereign wealthiness fund. Soon after, it launched its luxury sedan called nan Lucid Air, which starts astatine astir $80,000.

Lucid shares were unchangeable successful midday trading connected Thursday but person fallen astir 55% complete nan past year.

Tesla and Rivian, competing EV makers besides advertizing a luxury product, person deed caller roadblocks arsenic well.

Although Rivian reported amended than expected earnings for 2025, it laid off much than 600 workers past October, astir 4% of its workforce.

Tesla has seen falling income and a declining estimation arsenic main executive Elon Musk tries to displacement nan attraction of his institution to artificial intelligence and self-driving technology.

The institution announced past period it would discontinue 2 of its electrical conveyance models.