Electric-vehicle maker Lucid Group said on Tuesday that Peter Rawlinson, its CEO for over five years, is stepping down from the role, and forecast its vehicle production will more than double this year, sending the company's shares up 10% in extended trading.
Through his 12-year tenure as part of the top brass at Lucid, Rawlinson helped launch the company's Air models and guided it through its public offering.
The company's operating chief, Marc Winterhoff, will take the position of interim CEO.
"Now that we have successfully launched the Lucid Gravity, I have decided it is finally the right time for me to step aside from my roles at Lucid," Rawlinson said.
The firm also forecast vehicle production this year to be around 20,000, compared with around 9,000 cars it made in 2024.
Andres Sheppard, senior equity analyst at Cantor Fitzgerald, said the CEO transition is "surprising" but not unexpected given the company's previous underperformances, adding that the production forecast is "encouraging."
Lucid Group CEO Peter Rawlinson speaks during the press day preview of the Los Angeles Auto Show in Los Angeles, California, on Nov. 16, 2023. (Reuters/David Swanson/File photo / Reuters)
The company hired veteran finance professional Taoufiq Boussaid as its chief financial officer last month. Boussaid previously helped reduce debt load for his former company.
As the EV demand in the United States remains uncertain, Lucid has been trying to diversify its product lineup and step into the SUV market with the Gravity model, going toe-to-toe with Tesla's model X and Rivian's R1S vehicles.
The success of the Gravity SUV is seen as crucial to Lucid's long-term outlook, as it burns through cash ramping up production while its Air sedans have seen price cuts due to slower demand.
"They (Lucid) still have an amazing product. Now it's just a matter of can they turn the company around, can they increase demand and production with the Gravity, and really that's going to bridge the gap to their mid-size vehicle in 2026," Sheppard said.
Analysts on the post-earnings conference noted that Rawlinson was absent from the call, sparking questions about the circumstances surrounding his exit from the role.
"I definitely think it was surprising and unusual that he wasn't present during the call, particularly since they didn't appoint the new CEO," said Sheppard, who was also present on the call.
The company continues to lose tens of thousands of dollars per vehicle, while rivals such as Rivian move aggressively to cut costs in a bid to make profits.
Lucid reported revenue of $234.5 million, beating Wall Street expectations of $214.2 million, according to data compiled by LSEG.
It posted a loss of $397.2 million in the quarter ending December 31, compared with a loss of $653.8 million a year ago.
Demand for pure battery cars in the U.S. has been slow as people gravitate more towards cheaper hybrids owing to high interest rates and economic uncertainty.