Lucid Recalls 27,185 Luxury Air Sedans

Lucid Group is recalling 27,185 Air luxury sedans in the United States because an exterior lighting circuit can overheat and cause a fire. The National Highway Traffic Safety Administration reported the safety campaign on August 28. Regulators advised drivers to park outdoors and away from structures until the issue is resolved, noting that the defect can also shut off exterior lights and elevate crash hazards.

This action represents Lucid's largest recall to date. It exceeds the 15,841 vehicles the manufacturer delivered throughout 2025. The move follows two previous campaigns earlier this year, including a May recall of 2,039 cars for lost drive power and a January recall of over 10,000 units for backup camera faults. Lucid has distributed a free over-the-air software update to resolve the circuit defect, with 20,719 vehicles already updated before the public notice.

The recall coincides with a challenging operational turnaround led by CEO Silvio Napoli, who aims to produce $1.4 billion in cash-flow improvements this year. In the second quarter, Lucid generated about $405 million in revenue, up 56% year over year and 44% sequentially. That rise was supported by higher deliveries, a 3.7% increase in average selling prices, and $25 million from regulatory credit sales. However, quarterly net losses expanded to over $1 billion from $539.4 million a year earlier, while adjusted losses widened to $901.1 million, or $3.30 per share.

Lucid continues to face high expenditures, with second-quarter cost of revenue reaching $832 million and negative free cash flow hitting $1.47 billion. Output fell to 4,774 vehicles from 5,500 in the first quarter as the company worked through $1.37 billion in unsold inventory. While management withdrew guidance during an operational review, Lucid maintains backing from Saudi Arabia's Public Investment Fund, an agreement for Saudi Arabia to buy more than 4,000 vehicles annually through 2032, and plans to deploy 100 test robotaxis with Nuro and Uber by year-end before starting production in early 2027.