The battery-electric vehicle market is littered with wreckage from companies that perhaps started strong but couldn't get completely off the ground. Lucid and Rivian are two US-based EV makers that have managed to survive, although they face existential threats every week.Perhaps the only startup that has managed to approach Tesla's level of success is China's BYD, by leveraging cost advantages. Market Turmoil Isn't Helping Lucid Motors This week, Silicon Valley-based Lucid Motors shared its financial performance for 2025, and it appears that turmoil in the EV market – such as the loss of US federal tax credits – took its toll. Lucid reported a $3.5 billion loss from operations in 2025, following a $3 billion loss in 2024. The company's diluted net loss for 2025 was $3.8 billion, after shedding $3 billion the prior year.That loss translates to $12.09 per share attributable to common stockholders, on top of $12.52 per share in 2024. The company had more than 313 million shareholders and says it had $4.6 billion in total liquidity at the end of 2025. Banking On Midsize Vehicles Lucid "Against a challenging macro backdrop, we nearly doubled production, gained market share, reduced unit costs, and strengthened our financial position," said Marc Winterhoff, Interim CEO at Lucid. "In 2026, our focus remains on operational and financial discipline, sustainable growth, and continued progress toward profitability, while we look forward to the production of the first of our midsize vehicles and the deployment of the first Lucid robotaxis into commercial service with our partners."The company last week eliminated more than 300 jobs (12 percent of its workforce) at its headquarters in Newark. Lucid CFO Taoufiq Boussaid said during the earnings call the cuts are "expected to deliver approximately $500 million in cost savings over the next three years... supporting our path toward gross margin breakeven.” 18,378 Lucids Sold In 2025 Lucid In 2025, Lucid produced 18,378 vehicles and delivered 15,841, representing 55% growth from 2024. But that growth, which may appear modest by auto industry standards, has not been sufficient to offset company expenses. Lucid's negative free cash flow topped $3.8 billion in 2025, on top of the $2.9 billion in 2024. Meanwhile, the company's capital expenditures dipped only slightly to $868 million in 2025. And proceeds from the maturity of investments amounted to $4.1 billion in 2024, but fell to $2.6 billion in 2025. Burning Through Cash Lucid Its proceeds from investment maturities amounted to $2.6 billion, but those proceeds were much higher ($4.1 billion) in 2024. All told, Lucid ended 2025 with $1 billion in cash, but it ended 2024 with $1.6 billion, which raises a difficult question: How much longer can Lucid continue burning cash at this rate before taking other desperate measures, filing for bankruptcy or even pulling the plug?Middle East money already plays a prominent role, as the Saudi Arabia Public Investment Fund (via its affiliate, Ayar Third Investment Company) owns about 60 percent of Lucid. The automaker has assembly plants in Saudi Arabia and Arizona. Expanding The Lineup Lucid Compelling product is always at the heart of an automaker turning around its sagging fortunes, and Lucid's plan is to add smaller, more affordable EVs to its current lineup consisting of the Air sedan and Gravity SUV. Customers started taking delivery of their Lucid Airs in the fall of 2021, while the Gravity began landing in customer driveways about a year ago.It has been well received, with up to 450 miles of range and a base price starting around $80,000. It's considered a three-row SUV, but the Gravity's low roofline gives it a definite minivan vibe. The Gravity also earned a 2025 Buzz Award for best luxury vehicle. No Sedan Coming, Just SUVs Lucid Lucid spokesman Dave Buchko confirms for CarBuzz that the focus on next-generation vehicles will be crossovers and SUVs, and that a sedan is no longer part of the plan, despite Winteroff saying otherwise not long ago. "We’ll be releasing details as the year progresses," Buchko says in an email. "All variants will be available in the US and Canada." The vehicle launches are expected to span about a year and a half.Boussaid said Lucid expects to produce between 25,000 and 27,000 vehicles in 2025. "We believe we have liquidity into first-half 2027," he said on the earnings call. "And we are reaffirming that we are on track to start production of the first model on our new Midsize platform this year." 'Pivotal' Year Ahead Lucid MotorsSpeaking to CarBuzz, Stephanie Brinley, associate director of AutoIntelligence at S&P Global Mobility, sees Lucid's future riding on the success of these smaller vehicles that will come from the new Midsize platform."2026 and 2027, when they launch the midsize vehicle, and seeing how that is received, is going to be pretty pivotal for them."-Stephanie Brinley, S&P Global MobilityAs for the launch of the Gravity, "it was a little bit slower than they had initially intended," she says. "They've referred to that a couple of times." Tesla Needed A Decade Tesla Given the fluctuations in the EV market and "not knowing where EV demand is really going to sit," Brinley says the Gravity has done well for Lucid. "But, compared to what, exactly?" She sees Lucid still in a building phase. "And I'd say, it took Tesla what, 10, 12 years before they made any money?"Brinley refers to the EV market as evolving. "Whether or not they have enough cash to survive that period, I think, remains to be seen. But they do certainly have resources, and they're selling vehicles, so they've got a revenue stream. Then, it needs to grow, and it will. I wouldn't count them out necessarily. And I think there needs to be some patience in evaluating some of these startups."Source: Lucid