Lucid CEO admits it 'did not even know where cars were'

Key Points:

• Lucid CEO Silvio Napoli admitted that until recently, the company struggled to track its vehicles, causing delays of up to two weeks in delivering cars and resulting in lost sales despite having thousands of unsold vehicles in inventory.
• In the first half of 2026, Lucid produced more cars than it delivered, leading to a bloated inventory valued at $1.38 billion by June, though recent efforts have reduced inventory and improved delivery visibility.
• Tesla faced similar delivery logistics challenges during its 2018 Model 3 ramp-up but overcame them by innovating with car carrier logistics, door-to-door delivery, and acquiring trucking companies, enabling rapid delivery growth and avoiding financial collapse.
• Tesla’s swift resolution of delivery issues in Europe, such as taking over port operations in Belgium, helped it quickly scale Model 3 deliveries and boost sales, highlighting the critical role of efficient delivery in automotive success.
• Lucid’s core product quality is strong, but operational shortcomings in service, software, and inventory management have hindered sales, with Napoli acknowledging the problem as a matter of discipline rather than demand or product issues.