Lucid Group (NASDAQ: LCID) stock tumbled 7% in early trading Wednesday after the electric vehicle maker revealed late Tuesday that CEO Peter Rawlinson is stepping down after over five years at the helm. The company also announced plans to double vehicle production in 2025, projecting 20,000 units compared to 9,000 in 2024.
Rawlinson, a 12-year veteran at Lucid, spearheaded the launch of the Air sedan lineup and steered the company through its 2021 public debut. He exits as the EV maker rolls out its new Gravity SUV.
“Now that we have successfully launched the Lucid Gravity, I have decided it is finally the right time for me to step aside from my roles at Lucid,” Rawlinson said.
He will transition to a Strategic Technical Advisor role, supporting the Chairman of the Board.
Chief Operating Officer Marc Winterhoff takes over as interim CEO. The shakeup follows Lucid’s recent appointment of Taoufiq Boussaid as CFO. Boussaid, a finance veteran, previously tackled debt reduction at his former employer.
The market didn’t take the news lightly. Bank of America downgraded Lucid Group (NASDAQ: LCID) stock from Neutral to Underperform, citing concerns over Rawlinson’s exit. The firm also slashed its price target for the stock from $3 to $1.
Analysts, led by John Murphy, argued that Rawlinson’s departure “is much more consequential than understood by the market.” They expect product development to slow, consumer demand to weaken, and additional funding opportunities to face risks as a result of the change.
Even with the leadership upheaval, Lucid offered some positive updates. The company reported fourth-quarter revenue of $234.5 million, beating Wall Street’s expectations of $214.2 million, according to LSEG data. Its quarterly net loss also narrowed significantly, dropping to $397.2 million from $653.8 million a year ago.
On the production front, Lucid assembled 3,386 vehicles and delivered 3,099 during the quarter—numbers that beat analyst forecasts.
Stifel analysts weighed in with cautious optimism, calling the Q4 results “positive for the shares.”
They noted,
“While we are unsure of the specific reasons behind CEO Peter Rawlinson stepping aside, we believe the company’s momentum appears to be building.”
Looking ahead, Lucid’s plan to ramp up production to 20,000 vehicles in 2025 signals ambition. However, the company still faces steep financial hurdles. It continues to lose tens of thousands of dollars on each car it sells—a stark contrast to competitors like Rivian (NASDAQ: RIVN), which is aggressively cutting costs to reach profitability.
