Lucid CEO Peter Rawlinson exits as EV maker battles mounting losses, shifting strategy and the launch of its Gravity crossover

Lucid Motors is undergoing a significant leadership transition as Peter Rawlinson steps down as CEO following a turbulent financial year. The company announced Rawlinson’s departure after posting a fourth-quarter net loss of $397 million, contributing to an annual shortfall of $2.7 billion. The news comes amidst a flurry of reports that automotive production is struggling amidst the electric vehicle (EV) shift, leading to job losses and factory closures as automakers rush to balance the books and achieve adequate levels of flexibility to maintain output.

Lucid’s now-ex CEO, Rawlison will remain as a strategic technical adviser, reporting to board chair Turqi Alnowaiser. This latest news emerged alongside Lucid’s earnings report on 25 February, surprising investors. Rawlinson was notably absent from the earnings call, where it was confirmed that COO Marc Winterhoff will serve as interim CEO while a formal search for a successor begins.

The ongoing automotive production squeeze and mounting financial pressures

Compounding ongoing uncertainties around automotive manufacturing, on the market-side, Lucid’s stock initially climbed 9% in after-hours trading, but fell sharply by 11.7% to $2.30 the following day, followed by Bank of America downgrading the stock - citing uncertainty surrounding Rawlinson’s exit and broader industry challenges.

“On behalf of the board, I would like to thank Peter for his years of service and dedication,” said Alnowaiser. “Since launching Lucid in 2016, Peter has been instrumental in the company’s transition from concept to reality and in developing unique, world-leading technology.”

Despite the leadership shakeup, Lucid’s financials showed modest improvement compared with the previous year. The pure-EV maker also delivered 3,099 vehicles in Q4, a 79% increase year-on-year, yet analysts remain cautious. A report from research-firm, CFRA, cast doubt on Lucid’s ability to achieve profitability, even if production volumes more than double by 2025.

Lucid’s strategic shift and the gravity crossover

As automakers struggle in the EV shift, interim CEO Winterhoff outlined Lucid’s priorities, placing heavy emphasis on marketing and brand awareness, particularly in the wake of the Gravity crossover’s December launch. “In 2025, we will take a much bolder approach on marketing than ever before at Lucid,” Winterhoff stated. “We are working on something truly special.”

The company expects to produce around 20,000 vehicles in 2024 as it ramps up Gravity production, aiming to build momentum with showroom models and customer test drives in early 2025. While Winterhoff refrained from disclosing exact figures, he confirmed that initial orders for Gravity, which opened in November, have exceeded expectations. Lucid is first rolling out the Grand Touring trim at a starting price of $96,550, with lower trims set to follow later this year.

Lucid’s broader expansion plans

Beyond the Gravity launch, Lucid is charting a path toward diversification and expansion. The company plans to extend its retail footprint, introduce a hands-free advanced driver assistance system, and roll out a lower-priced midsize crossover by late 2026. Lucid follows a direct-to-consumer model, operating its own showrooms and service centres. This strategy aligns with its premium branding but also presents logistical and financial challenges in scaling up operations.

The automaker also announced a leadership change in its finance division, appointing Taoufiq Boussaid as chief financial officer. Boussaid previously served as CFO at Bekaert, a steel and coatings technology company.

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Rawlinson’s Legacy and Lucid’s Future

Rawlinson, a former Tesla engineer, played a pivotal role in Lucid’s transformation from a battery technology firm into a luxury EV manufacturer. His technical leadership helped establish the company’s reputation for high-performance vehicles with industry-leading range. Reflecting on his tenure, Rawlinson said: “I am incredibly proud of the accomplishments the Lucid team have achieved together through my tenure of these past 12 years. We grew from a tiny company with a big ambition, to a widely recognised technological world leader in sustainable mobility.”

As Lucid faces mounting financial pressures and intensifying competition in the EV market, Winterhoff and the future CEO will need to balance cost-cutting measures with the imperative to scale production. The company’s next chapter will hinge on the successful execution of its strategy and the market’s reception of the Gravity crossover.