LUCID GROUP (-) : CFO Call: 18% Workforce Cut Leaves Steep Road to Breakeven

Research evidence excerpt

LUCID GROUP (-) : CFO Call: 18% Workforce Cut Leaves Steep Road to Breakeven

EQUITIES

AUTOMOTIVE

LUCID GROUP UNDERPERFORMPRICE* USD5.4  TARGET PRICE USD5 (DOWNSIDE 7%)

FLASH NOTE

CFO Call: 18% Workforce Cut Leaves Steep Road to Breakeven

22 JUNE 2026 Securities Research Report Production time: 20:11* (London time)

Research Analyst & Publishing Entities

James Picariello, CFA BNP Paribas Securities Corp (1) (+1) 917 903 0391 James.picariello@us.bnpparibas.com

What happened?

We had the opportunity to speak with LCID’s CFO, Taoufiq Boussaid, today about the Co.’s announced plans to cut

18% of its workforce (incl. full-time employees, contractors & hourly manufacturing workers; all U.S.) & cancel the

second shift of its AMP-1 plant in AZ. As part of the corporate-element of LCID’s rightsizing effort, it’s eliminating the

COO role of former interim CEO, Marc Winterhoff, immediately. LCID expects to generate ~$158M in total annualized

savings at a moderate restructuring cash spend of ~$32M, with all actions completed by the end of 3Q26. For context

on the plan’s +$158M in targeted cost savings, we currently model -$1.15B in gross profit loss and -$3.8B in cash burn

for this year, which underscores the rather steep road still ahead to LCID’s pathway to breakeven.

LCID cites improved production rates from labor efficiencies as a key driver of its cost reduction announcement,

following previous efforts toward late 2025 to increase its headcount in support of higher Gravity production. Since then,

tooling & production processes have been optimized, inciting the manufacturing & corporate-focused cost saving plan.

No sales or services personnel are affected by this effort. LCID did share with us the unsurprising assessment that EV

demand remains weak in its core U.S.