NEWARK, Calif. - Lucid Group, Inc. (NASDAQ:LCID) announced that Silvio Napoli has assumed the role of Chief Executive Officer, effective immediately, according to a press release statement. The stock rose 12% over the past week, though shares remain down 38% year-to-date at $6.55.
Napoli was previously announced as incoming CEO on April 14. He brings decades of global industrial leadership experience, most recently serving as Chairman and Chief Executive Officer of Schindler Group.
"On behalf of the Board, we are pleased to have Silvio as CEO at this important stage for Lucid," said Turqi Alnowaiser, Chairman of the Lucid Board of Directors.
Napoli stated his priorities include strengthening customer engagement, operating with consistency and accountability, achieving cost competitiveness and streamlining the organization and processes. These goals come as the company faces financial headwinds, with InvestingPro data showing a gross profit margin of -95.6% and noting the company is quickly burning through cash. Despite these challenges, InvestingPro analysis suggests the stock appears undervalued at current levels, with additional insights available in the comprehensive Pro Research Report.
Marc Winterhoff, who served as Interim CEO, has resumed his role as Chief Operating Officer and will report to Napoli.
Lucid Group manufactures electric vehicles and operates vertically integrated facilities in Arizona and Saudi Arabia.
In other recent news, Lucid Group reported first-quarter revenue of $282.5 million, supported by 3,093 vehicle deliveries and the production of 5,500 vehicles. However, the company faced challenges with a widening net loss of $1.0 billion, despite a 20% increase in revenue year-over-year. The company’s decision to suspend its full-year guidance has led to lowered price targets from Cantor Fitzgerald and Canaccord, both reducing their targets to $8.00 from $14.00 while maintaining Neutral and Hold ratings, respectively. Lucid had previously guided for fiscal 2026 vehicle production of 25,000 to 27,000 units and capital expenditures of $1.2 billion to $1.4 billion but has paused these projections, planning to provide an update in the second quarter.
Needham maintained its Hold rating on Lucid, noting that the first-quarter results strengthened the long-term narrative around autonomy and platform expansion. The Uber/Nuro robotaxi partnership is expected to grow to at least 35,000 vehicles, with management reiterating a commercial launch timing for late 2026. Despite these developments, the company continues to face operational inefficiencies and a significant production-to-delivery gap. These factors have contributed to a decline in gross margins, affecting the overall financial performance.
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