Lucid Motors has delayed the release of its most affordable electric vehicle, the Cosmos, by almost a full year to the second half of 2027. The crossover SUV was supposed to start under $50,000 and was seen as a key product for the company to attract more customers.
The decision to delay the Cosmos is part of an effort by Lucid’s new CEO, Silvio Napoli, to avoid the quality problems that the company has suffered with its existing EVs. Napoli presented the delay as necessary for the company to survive.
Napoli said that Lucid has disappointed on several fronts and that the company has not executed consistently. He also stated that Lucid missed commitments, launched products before they were ready, underinvested in service, and responded too slowly to quality issues.
Since taking over as CEO on June 1, Napoli has made significant changes to the company’s leadership structure and workforce. Multiple executives have left, including Senior Vice President of Finance Gagan Dhingra, and Napoli has replaced them with a new C-suite.
Napoli has also cut 18% of Lucid’s overall workforce in June, following a 12% layoff earlier this year. He canceled a second shift at Lucid’s factory in Arizona, citing lower demand for the company’s EVs.
The delay of the Cosmos will likely disappoint some customers who were hoping to buy one by the end of this year. However, Napoli seems worried that the upside of getting the Cosmos EV to market could be negated if Lucid doesn’t get the launch right.
Related: SAP boosts AI with knowledge graphs
The company has struggled with build quality and software issues on its Gravity SUV, and Napoli doesn’t want to repeat the same mistakes with the Cosmos. The delay will also affect Lucid’s supply base, with the company warning that lower production volumes or demand could negatively affect its relationships with existing suppliers.
The company said it has sufficient liquidity runway well into 2027 but warned that it will build and sell fewer vehicles this year than previously predicted.
With the Cosmos delayed, there will be more attention on Lucid’s planned robotaxi service with Uber and Nuro. Napoli called it a top priority and, indeed, a must-win project for Lucid.
Lucid needs time to get the launch right and avoid the quality problems that have plagued its existing EVs. The company will have to tread water for another year until the Cosmos EV goes into production, and the focus will be on its robotaxi service with Uber and Nuro.
Lucid’s situation is a reminder that the electric vehicle market is highly competitive, and companies need to get their products right to succeed. The company’s ability to execute on its plans and deliver high-quality products will be essential to its survival and success in the long term, as high-quality products are vital for its survival.
