Lucid blames first-quarter sales decline on seat supplier issues

Lucid Group ended 2025 on a high note, building twice as many electric vehicles as the previous year and recording a 55% increase in sales. Then came the first quarter of 2026.

The company, which makes the Air sedan and Gravity SUV, said Friday that Sold 3,093 vehicles In the first quarter, down 42% from the previous quarter and about 0.5% lower than the same period last year. It built more, about 5,500 in total.

Lucid said the decline in sales, and the gap between production and delivery, is not a demand issue. Instead, the company blamed a supplier quality issue with the second-row seats, which held up deliveries of the Lucid Gravity for 29 days.

The supplier issue also prompted Lucid As a reminder More than 4000 attractive SUV cars. Lucid told the National Highway Traffic Safety Administration that it discovered that some of the SUV’s second-row seat belt anchors were not welded properly.

Lucid spokesperson Nick Twork confirmed to TechCrunch that the drop in sales was related to issues with the supplier. Due to an unapproved change made by a supplier, the company issued a pause on sales of the Gravity that lasted most of February to ensure proper quality of the vehicle before restarting it, he said. Pointing to Lucid’s recent success, Tuerk said, “After eight record quarters, we showed strong results in both January and March that almost generated year-over-year growth on their own.”

Lucid said in its securities filing on Friday that the issue has been addressed, and the company appears confident that the disruption will not impact its production goals.

Lucid reiterated its previously announced production guidance of 25,000 to 27,000 vehicles this year. Lucid will build 18,378 electric vehicles in 2025. That represents a 47% increase over last year.

Lucid’s seat supplier woes come as the company prepares to start building its first car on a new, lower-cost platform aimed at the mass market. Lucid said the first vehicle will cost about $50,000, a price point that will put it in direct competition with the upcoming Rivian R2 SUV, as well as existing products like the Tesla Model Y, Tesla Model 3, and Chevrolet Equinox EV.