Lucid Group has reported weaker-than-expected second-quarter results as the electric vehicle maker embarks on an “operational reset” under new CEO Silvio Napoli, delaying its next midsize model while prioritising its robotaxi programme.

The company now expects its new midsize vehicle to launch in the second half of 2027, having previously targeted the end of 2026. Napoli said the delay is intended to ensure the vehicle is fully ready before launch, avoiding past execution issues.

Lucid plans to begin non-prototype robotaxi production in early 2027, with around 100 pre-production Gravity SUV-based vehicles due to be delivered to partners Uber and Nuro by the end of this year. The company described the robotaxi programme as its top strategic priority.

As part of its transformation plan, Lucid aims to improve cash flow by $1.4 billion this year through lower inventory, reduced capital expenditure and operating cost savings. The company has also cut production at its Arizona factory from two shifts to one and expects second-half vehicle production to be below both first-half levels and Wall Street forecasts.

Lucid ended the quarter with $3 billion in liquidity, which it says should provide sufficient funding into 2027.

Second-quarter production rose 24% year-on-year to 4,774 vehicles, while deliveries increased 19% to 3,953 vehicles. However, the company posted a net loss of more than $1 billion, almost doubling from $539.4 million a year earlier, contributing to an approximately 8% decline in the company’s share price in after-hours trading.

Napoli also dismissed renewed speculation that Lucid could pursue bankruptcy protection or go private, insisting the company has the backing of its board and majority shareholder, Saudi Arabia’s Public Investment Fund, and remains committed to its long-term strategy.