Lucid Group, Inc.

Good day and welcome to Lucid Group's third quarter 2025 earnings call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Nick Twerk, Vice President of Communications. Please go ahead.

Thank you and welcome to Lucid Group's third quarter 2025 earnings call. Joining me today are Mark Winterhoff, our interim CEO, and Tawfiq Busaid, our CFO. Before handing the call over to Mark, let me remind you that some of the statements on this call include forward-looking statements under federal securities law. These include, without limitation, statements regarding the future financial performance of the company, production and delivery volumes, vehicles and products, studios and service networks, financial and operating outlook and guidance, macroeconomic policy and industry trends, tariffs and trade policy, company initiatives, and other future events. These statements are based on various assumptions, whether or not identified in this communication and on the predictions and expectations of our management as of today. Actual events or results are difficult or impossible to predict and may differ due to a number of risks and uncertainties. We refer you to the cautionary language and the risk factors in our annual report on Form 10-K for the year ended December 31, 2024, subsequent quarterly reports on Form 10Q, current reports on Form 8K, and other SEC filings, and the forward-looking statements on page two of our quarterly earnings presentation available on the investor relations section of our website at ir.lucidmotors.com. We undertake no obligation to revise or update any forward-looking statement for any reason except as required by law. In addition, management will make reference to non-GAAP financial measures during this call. The discussion of why we use non-GAAP financial measures and information regarding reconciliation of our GAAP versus non-GAAP results is available in our earnings press release issued earlier this afternoon, as well as in the earnings presentation. With that, I'd like to turn the call over to Lucid's interim CEO, Mark Winterhoff. Mark, please go ahead.

Thank you, Nick, and thank you everyone for joining us. First, I want to acknowledge all our employees, customers, and partners. We appreciate your commitment and support. Secondly, I'm pleased to point out that in Q3, despite all of the headwinds, we delivered our seventh consecutive quarter of record delivery numbers. With that in mind, I would like to reiterate the near-term priorities we are focused on, which we laid out earlier this year. Disciplined execution and scaling production Building our brand and further driving consumer demand and advancing our technology leadership. And this has not changed. We remain focused on designing and delivering the best cars, period. This is the core of our business, and in a moment, we'll review our progress against these near-term priorities. But before I talk about the near-term priorities, I'd like to share how our strategy has evolved from the beginning of the year and how we have been executing that strategy with intention. Beyond expanding our core business, we are pushing hard on what will be our next chapter, a push into new markets and high value adjacencies. So before reviewing the quarter with you, I want to explain to you a bit about the next stage of our strategic evolution, where we have already been working hard building block by building block toward the future of robotaxis, level four autonomy and new opportunities for revenue. Our vehicles are not only awesome driving machines, but built on industry-leading EV technology, but also a platform for delivery of new customer service and next-generation customer experience. And we're starting with autonomy. As you all know, we announced in September that we closed a $300 million strategic investment from Uber as part of our partnership to deploy 20,000 robotaxis or more. We already reached a first milestone with successfully delivering the first batch of Robotaxi engineering vehicles to Nuro. Nuro is now finalizing their integration and will begin further testing activities. And we announced last week that the San Francisco Bay Area has been chosen as the first location for deployment planned in 2026. Uber is a global leader in ride sharing and their scale brand and global reach help position Lucid at the forefront of the B2B level four market. Their strategic investment in Lucid validates our highly advanced technology platform and aligns with our strategy. But we don't stop at robotaxis because we believe demand for high levels of autonomous driving will grow as consumers have the opportunity to experience this technology. and that they will not only choose vehicles that have these capabilities over those that don't, but also are willing to pay for this capability. And that's why we are very excited about our collaboration with NVIDIA to deliver full Level 4 eyes, hands, and mind-off point-to-point autonomous driving capabilities to our consumers. We are playing to win. We plan to leverage our agility and focus to be the first to bring full level four capabilities to the B2C market, and we couldn't ask for a better partner than NVIDIA. Lucid's vehicle platforms and safety architectures combined with the world's AI computing leader will result in a vehicle with formidable performance and intelligence. We will jointly develop L4 capabilities, drawing on years and millions of miles of data, and continuously update software as technology improves to remain at the forefront of the industry. To be clear, while we are pushing for L4, with this partnership, we plan to provide significant upgrades to our advanced driving assist functionality beyond what we're already doing in-house as early as end of next year. For decades, cars have been a symbol for freedom to go anywhere at any time. With autonomy, this freedom expands by being able to be productive during your commute or being driven home safely after dinner with friends. And of course, with Lucid's exceptional driving feel, you always have the option to experience the thrill of driving your Lucid yourself whenever you choose. So, in a nutshell, we continue to develop the best driving vehicles, providing the most advanced EV technology, significantly advance our autonomous driving capabilities and user experience, expanding into new businesses and optimizing our operations to become leaner and more efficient. Now, maybe there's a question about efficiency. Developing autonomous technology fully in-house versus working with partners. Well, Lucid's strategy here is clear and very intentional. We're doing both. Developing higher levels of autonomy, especially true for L4, requires enormous investments. And while some of our peers spend vast sums for in-house development to provide this functionality to their customers, our focus is to provide a high level of autonomy to our customers as soon as possible and with optimized capex spend. Our partnerships are enabling us to do exactly that. Having said that, we are continuing our in-house development, but with a smart and resource-efficient approach. In early Q3, we already rolled out hands-free highway driving for the Lucid Air via OTA. and we will bring the same to the gravity soon. Fully developed in-house. The verdict is still out on whether owning autonomous driving technology in-house will be a sustainable differentiator or will become commoditized in the long run. Working with our partners allows us to monitor how the technology develops and make focused insourcing decisions once the future path becomes clear and avoid costly investments. I hope this gives you some insight into where Tawfiq and I and the leadership team plan to take Lucid. We are fully committed to technology leadership and innovation, but at the same time, we are committed to efficient and smart capital allocation. Now, let's turn back to progress on near-term priorities. First, let's talk about our operational execution. As mentioned in the beginning, we achieved a seventh consecutive record quarter for deliveries. I've said before, that our delayed ramp-up of the gravity is mainly due to a small number of suppliers not able to ramp as expected. On top of that, we had to cope with a number of extraordinary external headwinds that threatened to shut our production down several times throughout the year. That's why we are not where we want to be. Let me elaborate a bit on this to give you a flavor of what our teams are working through each day. Over the last six months, we have contended with three consecutive industry-wide supply chain crises. Magnets, aluminum, and chips. These are crises that set even far bigger competitors on their heels. However, thanks to our vertical integration and our team's agility and resourcefulness, we have been able to problem-solve our way through each one to limit impact. First, the magnet shortage in Q2. The magnets we were able to get were incompatible with our unique NAX boost charging drive units for gravity. Hence, we had to temporarily shift our production plan from the Grand Touring Trim for North America to the Touring Trim for export to Saudi Arabia until magnet availability improved. Unfortunately, that impacted our Q3 production and delivery numbers simply because the additional transport time needed. After we successfully crossed that bridge, a fire at our aluminum supplier's plant shut other OEMs down, but we were once again able to minimize the impact. And right after this, ship supply threatened the whole industry. While once again our team is on the job, we are still working through it. I hope this gives you some insight in what our teams are able to navigate on a daily basis, and I'm very proud what they have been able to accomplish and continue to accomplish. Having said that, I want to assure you that we hold ourselves to a high standard and constantly evaluate how we can improve as an organization. So today, we are making some key organizational changes to streamline decision-making, enhance accountability, and accelerate growth as the company scales globally. To support these objectives, we are making the following organizational changes. Imad Dalla, has been appointed Senior Vice President Engineering and Digital. In addition to leading the powertrain organization, he will now oversee all product development functions, including vehicle engineering, digital systems, and software. In his expanded role, he will continue to drive Lucid's technology leadership, lead vehicle development, improve cost efficiency and manufacturability, and advance Lucid's software-defined vehicle architectures. Imad has made remarkable contributions to Lucid's technology leadership over the last 10 years, and we expect this leadership will have a similar impact on the vehicle development, as he will now have end-to-end responsibility. Erwin Raphael has been elevated to senior vice president revenue with expanded oversight of Lucid's global operations. Since Erwin has been at Lucid, he has driven consecutive record results every quarter. He will now lead global sales and services operations, driving accountability for revenue and customer experience as Lucid expands further into new consumer markets worldwide. We are also appointing a new seasoned quality leader to our executive team. Manu Levergood is appointed Senior Vice President Quality and will lead efforts to ensure Lucid delivers vehicles that meet the highest standard of quality and craftsmanship, working in close concert with engineering and manufacturing. She previously held quality and manufacturing roles at Scout Motors, Stellantis, and Magna. Levergood succeeds Jerry Ford with retiring after more than 35 years in the automotive industry. We thank Jerry for her service to Lucid. These organizational changes are designed to capitalize on opportunities to strengthen our business, and we are confident that they will help drive the results we need moving forward. Before I hand over to Tufi, I'd like to share a few points on our efforts to boost awareness and strengthen our brand. In Q3, we accelerated our focus on building the Lucid brand and increasing awareness among luxury EV intenders. And we are already seeing results. In the United States, brand awareness jumped eight points month over month among consumers who plan to purchase an EV. This improvement was driven by the launch of our new brand campaign, titled Driven, starring our first global brand ambassador, Timothy Chalamet, and directed by Academy Award-nominated director James Mangold. Driven is now the most successful brand campaign in Lucid's history, with more than 7.2 million views on YouTube and over a billion total impressions in the U.S. Lucid's cultural relevance continues to grow. In October, we launched the We Write for New York campaign featuring NBA all-stars Jalen Brunson and Josh Hart with billboards across New York City and global extension in Abu Dhabi during the Knicks preseason game. And we're just getting started. Stay tuned for more to come. We also received another award our whole Lucid team is especially proud of. The Lucid Air Sapphire was selected as this year's German Performance Car of the Year by 30 leading German motor journalists. Let this sink in for a moment. The German Performance Car of the Year is designed and built in America. To my dear fellow countrymen, sorry to rub that in, but you probably can imagine how proud the Lucid team feels about that. Last, but certainly not least, On midsize, SOP of the first variant of our all-important midsize platform remains scheduled for the end of 2026. And I can share that we are very pleased with the progress of sourcing and cost structure the team is able to achieve. And on our Atlas Drive unit family, it is on track with again class leading efficiency, much fewer parts, lower bomb costs, lower weight, and it will include also a rare earth free variant. With that said, we are entering a new phase and looking forward to a very exciting year ahead. One where Lucid's award-winning vehicles, our leading technology, thoughtful partnerships, brand, and focus on execution come together to define the next generation of mobility. Thank you for your continued support and confidence in Lucid. With that, I'll turn over the call to Tawfiq to discuss our financial results and outlook.