Lucid’s Record Quarter Fueled by Rental Sales and Company Leases
Lucid Motors achieved a company record for deliveries in the first quarter of 2025, shipping 3,109 electric vehicles (EVs) across North America, Europe, and Saudi Arabia. A significant portion of this success appears to be driven by a new company car program and strategic sales to rental fleets.
According to a footnote in Lucid Motors’ latest regulatory filing, the company sold the equivalent of approximately 300 cars to “rental companies” during the quarter. However, Nick Twork, a Lucid Motors spokesperson, clarified that the “vast majority” of these vehicles were sold to leasing companies and subsequently leased back to Lucid as part of a revamped company car initiative.
“As part of the normal course of business, we leverage fleet transactions whenever we see a good opportunity that is in the best interest of our business,” Twork stated in an email. This strategic move allowed Lucid Motors to surpass its fourth-quarter 2024 delivery numbers by 100 vehicles, marking the fifth consecutive quarter of increased deliveries. This growth is particularly noteworthy considering the typical slowdown in automotive sales at the beginning of the year, as seen with Tesla and Rivian, which both experienced significant drops in deliveries.
Lucid’s recent success follows years of challenges in establishing a strong market presence for its luxury sedan, the Air. The company is now focusing on its first SUV, the Gravity, with expectations to ship higher volumes in the second half of 2025.
Interim CEO Marc Winterhoff highlighted the milestone during the company’s earnings call, noting, “Many of our customers continue to tell us that once they experience a Lucid, it’s hard to go back.”
While Lucid declined to specify the exact number of cars sold to leasing and rental companies, its regulatory filings provide some insight. In the first quarter of 2025, Lucid reported $27.2 million in revenue from sales to “rental companies.” Considering Lucid’s average selling price during the period, estimated at around $75,590 based on a total revenue of $235 million and 3,109 deliveries, the company may have sold approximately 360 EVs to rental and leasing entities.
For context, Lucid reported $34.7 million in car sales to rental companies in all of 2024 and $9.1 million in 2023, as per previous filings. Despite the positive impact on delivery numbers, these sales do not immediately translate to recognized revenue. Lucid’s accounting practices involve deferring revenue recognition on these sales until the vehicles are repurchased, at which point the difference between the initial sale price and the repurchase price is recorded as revenue.
Lucid’s partnerships with rental companies, including a public collaboration with Germany-based Sixt and a less publicized agreement with Enterprise, have been underway. These arrangements are helping Lucid expand its reach and expose more consumers to its vehicles, but the precise impact on overall delivery figures has only recently become quantifiable.
The demand for Lucid’s vehicles is a crucial factor for the company’s growth, especially given the challenges the Air sedan has faced since its launch in 2021. Factors such as shifting consumer preferences towards SUVs and Tesla’s price cuts have created a competitive environment. Former CEO Peter Rawlinson acknowledged in 2023 that a lack of awareness of both the car and the company was hindering sales.
Under Interim CEO Winterhoff, Lucid plans to increase its marketing efforts. The company spent $3.5 million on sales and marketing in the first quarter, with expectations for further increases to drive demand and brand recognition.
