Lucid Motors lays off 12% of US workforce amid profitability push

The Bay Area electric vehicle company is cutting hundreds of jobs as it continues a long, difficult path to profitability.

Published on Feb. 21, 2026

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Lucid Motors, the Bay Area electric vehicle startup, has announced a 12% reduction in its US workforce as it aims to operate more efficiently and improve its gross margins. The layoffs will impact the company's headquarters in Newark, California, but its manufacturing workforce in Arizona will be spared. This is the third major round of layoffs for Lucid since 2023 as it struggles to reach profitability amid growing competition in the EV market.

Why it matters

Lucid's struggles highlight the immense challenges facing electric vehicle startups as they try to compete with established automakers. The company's plummeting stock price and repeated layoffs underscore the capital-intensive nature of the EV business and the difficulties in scaling production and achieving profitability.

The details

Lucid announced the 12% workforce reduction on Friday, with the cuts primarily impacting its US-based employees. The company's manufacturing workforce in Casa Grande, Arizona will be spared. This is the third major round of layoffs for Lucid since 2023, following cuts of 1,300 and 400 workers in 2023 and 2024 respectively. Lucid finished 2024 with around 6,800 total employees.

  • Lucid announced the 12% workforce reduction on Friday, February 21, 2026.
  • The company previously laid off 1,300 workers in 2023 and 400 workers in 2024.

The players

Lucid Motors

A Bay Area-based electric vehicle startup that is fighting to compete in the crowded EV market.

Nick Twork

Vice President of Communications at Lucid Motors.

Marc Winterhoff

Interim CEO of Lucid Motors.

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What they’re saying

“We must operate with greater efficiency and deliver on our commitments to gross margin improvement and long-term growth.”

— Nick Twork, Vice President of Communications (SFGATE)

“Saying goodbye to colleagues is never easy. We are grateful for the contributions of those impacted by today's actions, and we are providing severance, bonus, continued health benefits, and transition support to help them through this period.”

— Marc Winterhoff, Interim CEO (Business Insider)

What’s next

Lucid is scheduled to report its 2025 financial results on February 24, 2026, where the company will reveal its margins and provide an update on its production and sales targets.

The takeaway

Lucid's repeated layoffs and struggles to reach profitability underscore the immense challenges facing electric vehicle startups as they try to compete with established automakers. The company's plummeting stock price and capital-intensive business model highlight the difficulties in scaling production and achieving sustained success in the highly competitive EV market.