What changed in this filing

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Item 1. Business

2025-02-25 compared with 2024-02-27 · 277 added, 278 removed, 312 unchanged (64% of the section changed)

Lucid’s mission is to inspire the adoption of sustainable energy by creating advanced technologies and the most captivating luxury electric vehicles (“EV”), centered around the human experience.

Lucid is a technology company that is setting new standards with its advanced luxury EV, beginning with the Lucid Air, the most efficient (as measured by miles of range per kilowatt-hour), the longest-range, and the fastest-charging fully electric car in its class on the market today.

Lucid (i) designs, engineers and manufactures EVs, EV powertrains and battery systems in-house using our own equipment and factories, (ii) designs and develops proprietary software in-house for Lucid vehicles that can be continuously improved upon through over-the-air (“OTA”) software updates, (iii) offers a refined customer experience at our own geographically distributed retail and service locations and through direct-to-consumer online and retail sales, (iv) plans to supply and license technology to third parties, and (v) boasts a strong product roadmap of future vehicle programs and technologies.

Our focus on in-house hardware and software innovation, vertical integration, and a “clean-sheet” approach to engineering and design led to the development of the award-winning Lucid Air.

The Lucid Air is a luxury sedan that redefines both the luxury car segment and the EV space, with an EPA-estimated range of up to 516 miles on a single charge (estimated ranges, including EPA-estimated ranges where applicable, is provided for vehicles equipped with 19-inch wheels, and actual range will vary dependent on many factors including vehicle configuration, battery age, driving habits, charging habits, temperatures, accessory use, and other factors).

This range is enabled by an efficient and powerful drivetrain that Lucid developed and built in-house through our vertically integrated manufacturing structure.

The Lucid Space Concept underpins the Lucid Air’s design, merging a spacious interior with a smaller exterior footprint than other luxury cars with similar space and comfort.

This achievement is enabled by our miniaturized drive-train components, which also reduces weight and maximizes storage capacity.

The Lucid Air is manufactured at our greenfield EV manufacturing facility in Casa Grande, Arizona, Advanced Manufacturing Plant-1 (“AMP-1”).

Our manufacturing footprint in Casa Grande also includes the Lucid Powertrain Manufacturing-1 (“LPM-1”) plant, which we plan to relocate to AMP-1.

Expansion activities are underway to bring installed capacity at our Arizona site to 90,000 vehicles per year within 2024.

Lucid’s mission is to advance the state-of-the-art of EV technology for the benefit of all.

Lucid is a technology company that is setting new standards with the world’s most advanced EVs, the award-winning Lucid Air and all-new Lucid Gravity.

This includes the Lucid Air Pure, the most efficient vehicle on the market today (as measured by miles of range per kilowatt-hour), the Lucid Air Grand Touring, the longest-range (up to 512 miles of U.S.

Environmental Protection Agency (“EPA”)-estimated range) and the fastest-charging (as measured by miles of range per minute) fully electric car in its class on the market today, and the Lucid Gravity, capable of up to 450 miles of an EPA-estimated range and up to 400 kW fast charging.

Estimated ranges, including EPA-estimated ranges where applicable, are provided for Lucid Air vehicles equipped with 19-inch wheels and Lucid Gravity Grand Touring vehicles equipped with 20”F/21”R wheels and configured as 2-row, 5-seat vehicle.

Actual range will vary depending on many factors, including vehicle configuration, battery age, driving habits, charging habits, temperatures, accessory use, and other factors.

Lucid (i) designs, engineers and manufactures EVs, EV powertrains, and battery systems in-house using our own equipment and factories, (ii) designs and develops proprietary software in-house for Lucid vehicles that can be continuously enhanced upon through over-the-air (“OTA”) software updates, (iii) offers a refined customer experience at our own geographically distributed retail and service locations and through direct-to-consumer online sales, (iv) plans to supply and license technology to third parties, and (v) boasts a strong product roadmap of future vehicle programs and technologies.

Our focus on in-house hardware and software innovation, vertical integration, and a “clean sheet” approach to engineering and design led to the development of the award-winning Lucid Air and Lucid Gravity.

The Lucid Air redefines both the luxury sedan segment and the EV space, with an EPA-estimated range of up to 512 miles on a single charge for the Grand Touring trim.

A significant enabler of this range is an efficient and powerful drivetrain that Lucid developed and built in-house through our vertically integrated manufacturing structure.

The Lucid Gravity is a groundbreaking new class of sport utility vehicle (“SUV”), conceived from the ground up without compromise.

The Lucid Gravity provides the interior space and practicality of a full-size SUV within the exterior footprint of a mid-size SUV.

As a result, it provides a space for up to seven adults, game-changing versatility, and an unparalleled driving experience.

Leveraging Lucid’s in-house powertrain technology, we have engineered the Lucid Gravity to deliver up to 450 miles of EPA-estimated range, while the only other competitive vehicle on the market today offering comparable driving range requires a battery pack over 60 percent larger in capacity.

The Lucid Space Concept underpins the design of Lucid Air and Lucid Gravity, merging a smaller exterior footprint with more interior space and better comfort.

This achievement is enabled by our wholistic approach to vehicle design and integration, which is aided by highly efficient miniaturized drivetrain components.

The Lucid Air and the Lucid Gravity are assembled at our EV manufacturing facility in Casa Grande, Arizona, named Advanced Manufacturing Plant-1 (“AMP-1”).

In 2024, we completed key expansion activities to bring installed capacity at AMP-1 to 90,000 vehicles per year.

By building AMP-1 from a clean slate, we expect to achieve greater operational efficiencies and more consistent production quality than would be possible through outsourced manufacturing or adaptation of an existing facility.

An emphasis on vertical integration of manufacturing capabilities provides us the opportunity to control our technology roadmap, ensure a high degree of quality control, and improve product margins relative to an outsourced manufacturing arrangement.

We expect to diversify our vehicle portfolio and increase production capacity through localization of manufacturing in other geographies.

We plan to diversify our vehicle portfolio and increase production capacity through localization of manufacturing in another geographical region.

In 2022, we broke ground on the Advanced Manufacturing Plant-2 in Saudi Arabia (“AMP-2”), and in 2023, we began semi knocked-down (“SKD”) assembly, with installed annual capacity of 5,000 vehicles.

The initial operation is re-assembly of the Lucid Air vehicle ‘kits’ that are pre-manufactured at AMP-1.

We plan to significantly expand AMP-2 to completely-built-up (“CBU”) unit production with additional installed annual capacity of 150,000 vehicles with start of production of our Midsize platform scheduled for late 2026, which we expect will expand our market reach into higher-volume vehicle segments.

We sell vehicles directly to consumers through our retail sales network and through direct online sales including through Lucid Financial Services.

As of December 31, 2023, we have opened thirty-eight studios and service centers in North America, five in Europe and two in the Middle East.

In 2024, we started an expansion at AMP-2 to enable completely-built-up (“CBU”) unit production with an additional installed annual capacity of 150,000 vehicles.

The start of production of our Midsize platform is scheduled for late 2026, which we expect will expand our market reach into higher-volume vehicle segments.

We sell vehicles directly to consumers through our retail sales network and through direct online sales, including utilizing Lucid Financial Services.

As of December 31, 2024, we have opened 42 Studios and service centers in North America, 11 in Europe, and 4 in the Middle East.

In addition, we have various temporary and satellite service centers.

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We have contracted with a third-party roadside assistance partner for urgent roadside needs.

As a technology company, we also complement our in-house service offerings through remote vehicle diagnostics and alerts capabilities, and OTA updates.

This combination of in-house capabilities, ancillary service partners, and remote support and update capability is expected to serve our customers’ high service expectations.

We began delivering the Lucid Air to customers in October 2021 and we expect to launch additional vehicles.

We have leveraged and expanded the technological advancements from the Lucid Air to the Lucid Gravity, a luxury sport utility vehicle (“SUV”), which is scheduled for start of production in late 2024.

After the Lucid Air and the Lucid Gravity, start of production of our Midsize platform is scheduled for late 2026.

As a technology company, we also complement our in-house service offerings with remote vehicle diagnostics and alerts, and OTA updates.

This combination of in-house capabilities, supplementary service partners, and remote support and update capability is intended to offer a premium service experience.

We began delivering the Lucid Air to customers in October 2021.

We have leveraged and expanded the technological advancements from the Lucid Air to the Lucid Gravity, which started commercial production in December 2024.

Beyond the Lucid Air and the Lucid Gravity, we plan to expand our vehicle lineup with the upcoming Midsize platform, which is scheduled for start of production in late 2026.

Market Opportunity

We are defining electric luxury by uniting our California aesthetic with our high-tech and Silicon Valley roots.

Current luxury vehicles are based on traditions established by internal combustion automotive manufacture and design.

We are defining the next generation of sustainable mobility by uniting our California aesthetic with our high-tech and Silicon Valley roots.

Current competitive vehicles are based on traditions established by internal combustion automotive manufacture and design.

We believe that we are leading the next wave of innovation in the vehicle space.

With the Lucid Air and the Lucid Gravity, we target consumers who desire EVs with a high-end aesthetic and the accompanying luxury experience.

Our initial product, the Lucid Air, competes in the global luxury car market.

With the Lucid Air and the Lucid Gravity, we target consumers who desire EVs with a high-end aesthetic and the accompanying premium experience.

The Lucid Air and the Lucid Gravity compete in the global luxury car market.

Our competitive advantage is defined by our leading EV hardware and software technology, developed entirely in-house.

The Lucid Air is the most efficient (as measured by miles of range per kilowatt-hour), the longest-range, and the fastest-charging fully electric car in its class on the market today.

We are defining an exclusive and recognizable brand that is synonymous with luxury and performance.

We believe the luxury automotive experience is one comprised of several essential elements, including:

(i) high-end comfort and significant attention to detail in design, content, materials, fit and finish, (ii) superior customer interaction, with high-touch customer engagement throughout both the sales cycle and ownership journey, and (iii) convenient service that exceeds that of a non-luxury automotive experience.

Our ultimate goal is to make a positive impact on the global climate crisis through mass production of advanced technologies and EVs.

Increased government mandates for electrification, combined with the need for clean energy vehicles, are driving electrification of the automotive industry at a rapid pace and on a global scale.

The market is still nascent, with approximately 9.6% and 7.4% of new passenger vehicle sales in 2023 represented battery electric vehicle (“BEV”) worldwide and in North America, respectively, according to an estimate from the S&P Global AutoInsight and an actual result from the S&P Global Catalyst Registration, respectively.

As our flagship product, the Lucid Air is intended to establish the bar for excellence across all our future products and experiences.

We started delivering vehicles to customers in North America in 2021.

The Lucid Air Pure is the most efficient vehicle in the world (as measured by miles of range per kilowatt-hour), the Lucid Air Grand Touring is the longest-range and the fastest-charging (as measured by miles of range per minute) fully electric car in its class on the market today, and the Lucid Air Sapphire is the highest-performance version of the Lucid Air (boasting 1,234 horsepower from three motors, the ability to accelerate from zero to 60 miles per hour in 1.89 seconds, and a quarter-mile time of 8.95 seconds).

We are defining a recognizable brand that is synonymous with elegant design, excellent driving performance, and outstanding range.

We believe the automotive experience is one comprised of several essential elements, including:

(i) high-end comfort and significant attention to detail in design, content, materials, and fit and finish, (ii) superior customer interaction, with high-touch customer engagement throughout both the sales cycle and ownership journey, and (iii) convenient service that exceeds that of a non-premium automotive experience.

Our long-term goal is to make a positive impact on the global climate crisis through mass production of advanced technologies and EVs.

The market is still nascent, with approximately 11.1% and 8.1% of new passenger vehicle sales in 2024 being battery electric vehicles (“BEV”) worldwide and in North America, respectively (worldwide figure is an estimate from S&P Global AutoInsight, and the North America figure is an actual result from S&P Global Catalyst Registration).

As our launch vehicle, the Lucid Air has established the bar for excellence across all our future products and experiences.

We started delivering vehicles to customers in North America in October 2021.

In 2022, we delivered our first vehicles to customers in Europe and the Middle East.

Over the course of 2023, we delivered the entire Lucid Air lineup including the Lucid Air Sapphire, the world’s first luxury electric super-sports sedan, and the Lucid Air Pure, the most attainable Lucid Air model.

The Lucid Air has received critical acclaim since it debuted, winning MotorTrend 2022 Car of the Year award, followed by the 2023 World Luxury Car Award, and most recently, the Air Pure earned a place on Car and Driver’s prestigious 2024 10Best list.

Our second vehicle, the Lucid Gravity, is a luxury SUV defined by efficiency, performance, and a spacious interior that will set it apart in the SUV class, similar to how the Lucid Air stands out in its class.

We plan to enter higher-volume SUV vehicle segment with the Lucid Gravity, which is scheduled for start of production in late 2024.

Beyond the Lucid Air and the Lucid Gravity, our business plan also includes start of production of our Midsize platform, which is scheduled for late 2026.

Beyond the sale of Lucid branded vehicles, we believe that our technological prowess and manufacturing capabilities present a further opportunity to generate revenue and combat climate change through the sale or licensing of EV powertrain and battery technology to third parties.

Such powertrain and battery arrangements could facilitate and accelerate the shift to electrification for traditional automotive original equipment manufacturers (“OEMs”), pure-play EV companies, and prospective partners in the transportation sector and thereby enable the global production of EV in greater volumes and at varying price points.

We believe that the sale or licensing of our technology would also enable us to refine our manufacturing efficiencies and the real world, practical operation of our technologies.

The Lucid Air has received critical acclaim since it debuted, winning MotorTrend 2022 Car of the Year, followed by the 2023 World Luxury Car Award, and most recently was named to Car and Driver’s 10Best list for 2024 and 2025.

Production of our second vehicle, the Lucid Gravity, began in December 2024.

The Lucid Gravity builds on innovations and processes from the Lucid Air sedan for an unprecedented combination of performance, interior space, and efficiency.

Beyond the Lucid Air and the Lucid Gravity, our business plan expands to vehicles using our upcoming Midsize platform, which is scheduled for start of production in late 2026.

In addition to the sale of Lucid-branded vehicles, we believe that our technological prowess and manufacturing capabilities present a further opportunity to generate revenue and combat climate change through the sale or licensing of EV powertrains, battery technology, and embedded controls software to third parties.

Such powertrain and battery arrangements could facilitate and accelerate the shift to electrification for traditional automotive original equipment manufacturers (“OEMs”), pure-play EV companies, and prospective partners in the transportation sector, and thereby enable the global production of EVs in greater volumes and at varying price points.

We believe that the sale or licensing of our technology would also accelerate our efforts to refine our manufacturing efficiencies and the real world, practical operation of our technologies.

Competitive Strengths

• Revolutionary Powertrain Technology.

Our proprietary EV technology delivers outstanding range, charging, and driver-oriented performance without the cost and weight of ever-larger battery packs that are common in other EVs.

All variants of the Lucid Air have received EPA-estimated range ratings of over 400 miles and the Lucid Air Grand Touring is the first and only fully electric vehicle to reach an EPA-estimated range of 516 miles.

The Air’s proprietary high-voltage electrical architecture, the Wunderbox on-board inverter charger, and our efficient battery management system, all developed in-house by us, enable customers to spend less time charging.

Our proprietary EV technology delivers outstanding range, charging, and driver-oriented performance all while achieving higher efficiency ratings than other EVs as measured by miles of range per kilowatt hour of energy consumed.

All variants of the Lucid Air have received EPA-estimated range ratings of over 400 miles and the Lucid Air Grand Touring holds the title for the longest range passenger vehicle with an EPA-estimated range of 512 miles.

The Lucid Gravity delivers up to 450 miles of EPA-estimated range, while the only other competitive vehicle on the market today offering comparable driving range requires a battery pack over 60 percent larger in capacity.

For example, the Lucid Air Grand Touring can add approximately 300 miles in about 21 minutes using DC fast charging, while the Lucid Air Pure can add up to 150 miles in about 12 minutes with DC fast charging.

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Using Lucid’s innovative new vehicle-to-vehicle (“V2V”) RangeXchange adapter and the latest mobile charging cable, the Lucid Air can function as the power source to charge another EV.

In the future, we plan to introduce additional functionality, such as features that might allow a Lucid Air to serve as a back-up power source for residential applications, such as during emergency power grid outages.

In the future, we plan to further unlock the potential of the bi-directional charging capability built into the Lucid Air to serve as a back-up power source for residential applications, such as during emergency power grid outages, when paired with Lucid Connected Home Charging Station.

(Additional equipment is needed at the home to enable back-up power capabilities.)

In June 2023, we entered into an agreement (the “Implementation Agreement”) with Aston Martin Lagonda Global Holdings plc (together with its subsidiaries, “Aston Martin”), under which we and Aston Martin have established a long-term strategic technology and supply arrangement.

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Our advancements in battery pack and drivetrain technology, created through a clean-sheet approach to engineering, have resulted in compelling performance and efficiency in our vehicles.

The Lucid Air is available in a configuration with 1,234 horsepower, a zero to 60 miles per hour acceleration time of 1.89 seconds and a quarter-mile time of 8.95 seconds.

The Lucid Air Sapphire offers 1,234 horsepower, a 0-60 miles per hour acceleration time of 1.89 seconds and a standing quarter-mile time of 8.95 seconds.

• Directly Owned Manufacturing.

Our vehicles are produced at AMP-1, the first purpose-built, greenfield EV manufacturing facility in North America.

With the Lucid Air already in production, expansion activities are underway to enable the concurrent production of the Lucid Air and the Lucid Gravity.

With the Lucid Air already in production, expansion activities have recently been completed to enable the concurrent production of the Lucid Air and the Lucid Gravity.

Key elements of our vehicle engineering enable efficient and advanced manufacturing processes with a high degree of quality control.

For example, the aircraft-inspired riveted and bonded monocoque body structure is designed to enhance structural efficiency and replace spot welds in the manufacturing process.

Additionally, we manufacture and assemble our complete electric powertrain at LPM-1, including assembly of battery packs, integrated drive units, and the Wunderbox.

We designed LPM-1 to simplify the future establishment of similar facilities for an expanded, global manufacturing footprint for vehicles.

Additionally, we manufacture and assemble our complete electric powertrain at AMP-1, including assembly of battery packs, integrated drive units, and the Wunderbox.

In September 2023, we also opened AMP-2, which was Saudi Arabia’s first-ever car manufacturing facility and our first manufacturing facility outside the United States, where we commenced SKD assembly operations.

• In-House Sales and Service.

Consistent with the focus on quality in our manufacturing processes, we implement a direct sales and service strategy to maintain control over the customer experience and ensure that interactions are aligned with the Lucid brand.

We enable this tight control over the customer experience by vertically integrating our sales operations instead of relying on a traditional outsourced dealership model.

We are also scaling our own service operations to support customers, in addition to growing our established network of partnerships with body shops and other ancillary service partners that meet our expectations for customer service.

Consistent with the focus on vertical integration in our manufacturing processes, we employ a direct sales and service model to maintain full control over the customer experience and ensure that interactions are aligned with Lucid standards.

We enable a superior customer experience by vertically integrating our sales operations instead of relying on a traditional outsourced dealership model.

We are also scaling our own service operations to support planned future growth, in addition to further developing our established network of partnerships with body shops and other ancillary service partners that meet our expectations for customer service.

• Product Design.

Our first vehicle, the Lucid Air, fuses art and science to capture the potential of electrification.

As our current flagship product, the Air establishes the bar for excellence across all our products and experiences.

The Lucid Air and the Lucid Gravity fuse art and science to capture the full potential of electrification.

As our company’s first vehicle, the Air established the bar for excellence across all our products and experiences.

Our Space Concept represents a technical breakthrough, achieved by rethinking the way an automobile is designed from the ground up.

Our reimagining of the car has resulted in class-leading interior space for the driver, passengers, and storage within a compact and efficient exterior.

• Favorable Market Trends.

The Lucid Air is the first true luxury EV and positions us to build our brand and reputation.

By building the Lucid brand and achieving scale and efficiency in our manufacturing footprint, we believe we will have the opportunity over time to create more attainable technology to allow broader adoption in the EV space and the ability to capitalize on adjacent market opportunities.

• Management Team Experience.

We have assembled a seasoned management team with deep experience in the automotive, EV, and software industries led by Peter Rawlinson, who served as the Chief Engineer of the Tesla Model S program.

The management team is rounded out by executives with significant experience from such companies as Apple, Intel, Tesla, Mazda, Audi, Volkswagen, Ford, and Mercedes-Benz, among others.

The Lucid Gravity builds upon this design philosophy to deliver an occupant and cargo space that outclasses the competition in a vehicle with a significantly smaller exterior footprint.

• Deep Experience.

We have assembled a seasoned management and advisory team with deep experience in the automotive and EV industries.

The management team is rounded out by executives with significant experience from such companies as Tesla, Audi, Ford, Hyundai, Mazda, Mercedes-Benz, Porsche, Stellantis, and Volkswagen, among others.

• Strategic Partnerships.

We have established strong relationships with suppliers and partners to deliver the Lucid Air.

We have battery cell supply agreements in place with leading suppliers in the EV space.

We have established strong relationships with suppliers and partners to deliver the Lucid Air and the Lucid Gravity.

We have battery cell supply agreements in place with leading suppliers in the EV space and have also begun entering into agreements to help ensure our supply of critical battery materials.

• Software Defined.

Our advanced software-defined vehicle architecture is applied throughout our vehicles to allow us to continually tune and improve vehicle performance, add features, and delight our existing and new customers through OTA software updates.

Growth Strategy

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• Vehicle Roadmap.

We have established a planned roadmap for future vehicle lines that includes a variety of vehicle types that are expected to perform well in various customer segments.

By utilizing the Lucid Air to establish the brand, we plan to leverage economies of scale and efficiency of operations to unlock sales in higher-volume vehicle segments.

We will seek to establish a strong customer base in the luxury and premium vehicle markets across the globe.

We have established a roadmap for future vehicle lines that includes a variety of vehicle types expected to perform well in various customer segments.

Establishing the brand with the Lucid Air and the Lucid Gravity, we plan to unlock further sales with a new Midsize platform, enabling sales in some of the highest-volume vehicle segments, which we expect will enable us to leverage economies of scale and efficiency of operations.

We will seek to establish a strong customer base in premium vehicle markets across the globe.

• International Expansion.

We expect to establish manufacturing facilities in multiple geographies along with a retail and service footprint throughout each geographic area.

We expect to increase our market presence in multiple geographies along with the relevant retail and service footprint across each geographic region.

Expanding across global markets is key to achieving the scale of economies needed for a profitable OEM.

The expansion is expected to enhance the brand presence and awareness and support top line growth objectives.

Additional business and distribution models are being implemented to both accelerate speed to market while optimizing resource requirements.

Long term, we are also exploring expansion of our manufacturing footprint.

These manufacturing facilities could include facilities for component subassembly, vehicle kit reassembly, and complete built unit vehicle production.

We believe that establishing a global manufacturing footprint will help us to grow the brand, scale the business and address market demand in the Middle East, European and Asia-Pacific markets, while also taking action to address climate change.

We anticipate that localized supply chain, production, distribution and retail can yield cost savings and environmental benefits with reduced transportation of product to the customer.

We began construction of a manufacturing facility in Saudi Arabia in May 2022 and began SKD assembly in September 2023.

See “ —Manufacturing.

We anticipate that a localized supply chain, production, distribution and retail network will yield cost savings and lower carbon emissions with shorter transportation distances of products to customers.

• Technology Outbound Sales & Licensing.

We are actively engaged in supplying racing teams in a premier EV racing series with the front drive unit and software.

We entered into the Strategic Technology Arrangement with Aston Martin under which we will provide Aston Martin access to our powertrain and battery system technology to use in Aston Martin’s initial and certain future EVs.

We expect to continue expanding this technology division to supply our world class technology to other automotive OEMs and prospective partners in the transportation sector to help accelerate the adoption of EVs.

We are motivated to achieve a future where transportation is sustainable and works with the planet, not against it.

The sale of technology solutions to traditional automotive OEMs would support that goal, as would sales to customers in the marine and aviation sectors.

We are actively engaged in supplying all racing teams in the premier EV open wheel racing series with a front drive unit and related software.

We also entered into the Strategic Technology Arrangement with Aston Martin in 2023 under which we will provide Aston Martin access to our powertrain and battery system technology to use in Aston Martin’s battery electric vehicles.

We plan to continue expanding this technology division to supply our world class technologies to other automotive OEMs and partners in the transportation sector to help accelerate the adoption of EVs.

We are motivated to achieve a future where transportation is fully sustainable.

The sale of technology solutions to traditional automotive OEMs and pure-EV brands would support that goal, as would sales to customers in other transportation sectors.

Our technology is modular and readily customizable, enhancing our suitability for build-to-print powertrain and battery solutions for other manufacturers.

As our current flagship product, the Lucid Air has established the bar for excellence across all our future products and experiences.

The Lucid Air is a state-of-the-art luxury electric sedan featuring California-inspired design and award-winning powertrain technology.

Some variants of the Lucid Air offer an EPA-estimated range of 516 miles on a single charge.

The Lucid Space Concept offers class-leading interior space, with the Lucid Air providing a massive front trunk (or “frunk”) with a capacity of three times more than leading competitors.

From the start of its development, we used the Lucid Space Concept to maximize interior space.

This new approach to sedan architecture takes advantage of our miniaturized EV drivetrain to deliver full-size interior volume within a mid-size exterior footprint.

This technical breakthrough resulted in class-leading interior space for the driver, passengers, and storage within a compact, agile, and efficient exterior.

The Lucid Air offers a bench style rear seat that provides expansive space for three adults with class leading legroom.

Some variants of the Lucid Air’s interior are capped with a glass canopy that creates an even more extravagant sense of space.

Despite its expansive interior, the Lucid Air is more compact on the exterior than leading internal combustion engine (“ICE”) vehicles in the same class and segment.

The centerpiece of the Lucid Air’s human-machine interface is its Glass Cockpit, a beautifully integrated, configurable infotainment system that is designed to provide a seamless connected experience for the driver.

This system is presented on a compound three-screen display assembly that curves in front of the driver — including two touch screens.

This display is designed to sit in the driver’s line of sight to increase operator safety and reduce time looking away from the road.

The Glass Cockpit is augmented by a retractable center screen for a more immersive user interface.

The Lucid Air is a true software-defined vehicle, designed to improve over time, with OTA software updates and key hardware already in place in the vehicle.

For example, we recently launched RangeXchange, an innovative new feature enabling the Lucid Air to directly charge other EVs.

This new capability is enabled by our bi-directional charging technology built into every Air via an OTA software update, as well as the RangeXchange adapter.

The Lucid Air is the most advanced car in the world, featuring California-inspired design and award-winning powertrain technology.

As Lucid’s first vehicle, the Air has established Lucid as the preeminent force in electric vehicle technology.

Since the first deliveries to customers in October 2021, the Lucid Air has been the benchmark for luxury vehicles and EVs, continuing to grow in popularity and garnering continuing accolades from the media.

The Lucid Air is offered in an array of trims and configurations at different price points with distinct superlatives.

The 2025 Air Pure offers a remarkable 420 miles of EPA-estimated range, with just an 84-kWh battery pack, and thus achieves a landmark 5.0 miles per kilowatt hour of energy, making it the most efficient vehicle on the market today.

With 512 miles of EPA-estimated range, the Lucid Air Grand Touring continues to lead the market in range by a significant margin, enabled by advancements in Lucid’s electric powertrain technology.

The Lucid Air Sapphire is the highest-performance version of the Lucid Air, boasting 1,234 horsepower from three motors, 427 miles of an EPA-estimated range (when equipped with standard wheel covers), the ability to accelerate from zero to 60 miles per hour in 1.89 seconds, and a quarter-mile time of 8.95 seconds.

In 2024, the Lucid Air outperformed many major and well-established brand in the U.S.

across both electric and combustion vehicles within its competitive set, based on the data from Motor Intelligence.

Lucid Gravity

The Lucid Gravity, for which we began commercial production in December 2024, reimagines what an SUV can be, and is conceived from the ground up to offer a previously impossible combination of features.

Enabled by Lucid’s revolutionary technology, the Lucid Gravity provides the interior space and practicality of a full-size SUV within the exterior footprint of a mid-size SUV.

As a result, it provides a sophisticated space for up to seven adults, game-changing versatility, and an unparalleled driving experience.

The Lucid Gravity is designed to share components with the Lucid Air where optimal, and we continue to evaluate opportunities to apply components developed for the Lucid Gravity to the Lucid Air, further expanding the number of common parts while also enhancing the customer experience in the Lucid Air.

We anticipate that all of these measures will enable efficiency in design, engineering, and capital expenditure deployment for the Lucid Gravity.

The Lucid Air and the Lucid Gravity are true software-defined vehicles, designed to improve over time, with OTA software updates and key hardware already in place in the vehicle.

This holistic systems approach to the integration of hardware and software is what allows us to provide these value-add updates and is what sets us apart in the automotive industry.

The Lucid Air has the looks to match its advanced powertrain, with clean styling up front emphasized by slim headlights and a chrome strip that spans from one corner to the other.

The hood features sculpting over the wheels to further emphasize power, and the windshield flows as one piece of glass all the way back to the B-pillar.

The sleek lines work well with the Lucid Air’s short overhangs and large wheels.

This pleasing shape is also functional, providing the Lucid Air Pure a low coefficient of drag at a mere 0.197 and enabling greater range.

The Lucid Air’s interior themes are crafted with colors and materials that evoke iconic California locations at various times of day and night.

Efficiency is the ultimate measure of EV technology, and we believe our technology leads the industry in this respect, with a range efficiency of up to 4.74 miles of range per kilowatt-hour for some variants of the Lucid Air when equipped with 19-inch wheels.

The Lucid Air is offered at various price points with different specifications.

Following the limited-availability Lucid Air Dream Edition, which began deliveries in October 2021, we have subsequently rounded out the product lineup with Grand Touring, Touring, Sapphire and Pure variants of the Lucid Air.

The Lucid Air Grand Touring offers the highest range potential and most power in the standard Air lineup, with an EPA-estimated range of 516 miles and 819 horsepower from its two-motor all-wheel drive configuration.

The Lucid Air Touring is the quintessential Lucid Air, with better performance, range, energy efficiency, aerodynamics, and packaging than many other competitors.

The Lucid Air Pure is the most accessible variant in the Lucid Air lines, and still offers 410 miles of estimated range.

We have also commenced deliveries of the special production Lucid Air Sapphire, the highest-performance version of the Lucid Air, boasting 1,234 horsepower from three motors, 427 miles of an EPA-estimated range (when equipped with standard wheel inserts), the ability to accelerate from zero to 60 miles per hour in 1.89 seconds, and a quarter-mile time of 8.95 seconds.

As discussed in “ — Technology ” below, the Lucid Air is underpinned by the Lucid Electric Advanced Platform (“LEAP”), which is designed with adjustability to support other vehicle variants to enable greater capital deployment efficiency and speed to market.

As discussed in “ — Technology ” below, the Lucid Air and the Lucid Gravity are underpinned by the Lucid Electric Advanced Platform (“LEAP”), which is designed with adjustability to support multiple vehicle variants to enable greater capital deployment efficiency and speed to market.

Future Vehicle Programs

The Lucid Gravity, which we unveiled in November 2023 and start of production is scheduled for late 2024, will share many of the same attributes that make the Lucid Air special, including a class-leading spacious interior in a more compact and efficient exterior, and at least 440 miles for our longest range trim.

We anticipate the use of Air components in the Lucid Gravity will enable efficiency in design, engineering, and capital expenditure deployment for the Lucid Gravity.

We expect to have installed production capacity of 90,000 vehicles per year at AMP-1.

We have also developed a roadmap of additional vehicles and platforms that will be accessible at a variety of price points.

We have started manufacturing high-end vehicles to establish our brand and expect to progress to higher-volume vehicle segments over time.

We started by manufacturing higher-end vehicles to establish our brand.

We expect to progress to higher-volume vehicle segments over time, which require a higher throughput from manufacturing to distribution.

Beyond the Lucid Air and the Lucid Gravity, our roadmap calls to expand our vehicle lineup with vehicles built on a new Midsize platform, with which we intend to enter lower-price and higher-volume vehicle segments.

The Midsize platform is currently in development, and is scheduled for start of production in late 2026.

We are a technology company that has set new standards for sustainable transportation.

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Our in-house engineering team is focused on delivering innovation in all facets of vehicle development, including hardware and software development, vehicle design, and passenger comfort.

The development of the Lucid Air was predicated on the premise that miniaturizing the powertrain would allow us to redesign what a car can be from the ground up.

We have refined our battery technologies over many years in real-world applications, including more than 95 million miles of vehicle testing and the supply of battery packs to all teams in the world’s premier EV racing series.

The development of the Lucid Air and the Lucid Gravity have been predicated on the premise that miniaturizing the powertrain would allow us to redesign what a passenger vehicle can be from the ground up.

We have refined our battery technologies over many years in real-world applications, including more than 230 million miles of vehicle testing and the supply of battery packs to all teams in the world’s premier EV open wheel racing series.

We have used the data accumulated from these activities to refine our technology and thoughtfully develop the Lucid Air, and subsequently the Lucid Gravity.

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The Lucid drive unit is capable of producing up to 670 horsepower with power density up to 9.0 horsepower per kg, depending on vehicle trim and variant.

This compactness allows for one, two or even three units to be used to power a Lucid Air or Gravity.

Further to this, we have developed motor and transmission technology for the world’s premier EVs racing series with a power density of over 14.5 horsepower per kg.

This compactness allows for one, two or even three units to be used to power a Lucid Air or Lucid Gravity.

Further to this, we have developed motor and transmission technology for the world’s premier EV open wheel racing series with a power density of over 14.5 horsepower per kg.

The enablers of these electric motor characteristics include a set of inventions that are part of our intellectual property portfolio.

Most notably, a new motor winding technology has been introduced to increase power output and reduce electrical losses.

The motor also features an innovative cooling system that more effectively removes heat from the stator winding, reducing losses and boosting efficiency.

The motor also features an innovative patented cooling system that more effectively removes heat from the stator winding, reducing losses and boosting efficiency.

The compactness of these electric drive units lays the foundation for our Space Concept vehicle design approach.

The fully integrated transmission and differential also contribute to this approach.

The patented fully integrated transmission and differential also contribute to this approach.

Together, these components comprise a unified, integrated rotational system that is both lightweight and extremely efficient.

Meanwhile, we leverage a high voltage, silicon-carbide metal–oxide–semiconductor field-effect transistor (“MOSFET”) system in our inverters to increase efficiency, especially in real-world driving conditions.

Pursuit of a lightweight platform construction contributes to overall vehicle efficiency.

Our technology allows for a lighter powertrain through miniaturization and improvement of key components.

For example, the Lucid Air Grand Touring has an EPA-estimated range of 516 miles.

Less weight leads to increased efficiency, even as performance is elevated to new levels.

Finally, we have also achieved breakthroughs in the advanced thermal management system within our electric motors.

We have patented our efficient cooling design, which enables even higher levels of efficiency and performance.

• Bi-directional Charging.

Our proprietary technology is designed to enable ultra-fast DC and bi-directional AC charging.

The available 900V+ architecture and our Wunderbox are key enablers inside the Air’s electrical platform.

The Wunderbox is a multi-function unit, developed in-house to ensure compatibility with charging systems of differing voltages.

It enables “boost-charging” when needed, such as when connected to 400V charging infrastructure.

The 900V+ high voltage architecture and our Wunderbox are key enablers inside the Lucid Air’s and the Lucid Gravity’s electrical platform.

The Wunderbox is designed to enable ultra-fast DC and bi-directional AC charging with proprietary technology.

It is a multi-function unit, developed in-house to help ensure compatibility with various charging stations and power levels, from Level 1 AC up to Level 3 DC fast charging.

It also enables “boost-charging” when needed, such as when connected to 400V DC charging infrastructure.

The Wunderbox is also designed to enable a wide array of future-ready, bi-directional power delivery features, such as vehicle-to-grid (“V2G”) applications for situations such as managing home power outages.

In November 2023, we launched RangeXchange, an innovative new feature enabling the Lucid Air to directly charge another EV.

This new capability is enabled by our bi-directional charging technology built into every Air via an OTA software update, as well as the RangeXchange adapter.

This capability is enabled by our bi-directional charging technology built into every Air via an OTA software update, as well as the RangeXchange adapter.

This holistic systems approach to the integration of hardware and software is what allows us to provide these value-add updates and truly sets us apart in the automotive industry.

• Software System.

The Lucid Air is a true software-defined vehicle.

The Lucid Air and the Lucid Gravity are true software-defined vehicles.

With software-enabled future-ready hardware, Lucid vehicles can evolve over time to best meet customer needs long after they take delivery.

With highly advanced processing capabilities, the system is designed to leverage data analytics and OTA updates to improve and refresh the vehicle over time.

We have deployed more than 80 OTA software updates for improvements and bug fixes since customers deliveries began in October 2021.

With highly advanced processing capabilities, the system leverages data analytics and OTA updates to improve and refresh the vehicle over time.

We have deployed more than 100 OTA software updates for improvements and bug fixes since customer deliveries began in October 2021.

In October 2022, we introduced Lucid UX 2.0, our most extensive software update to that point, with hundreds of updates and new features for every Lucid Air on the road.

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These software updates are developed, coded, validated, and deployed by Lucid’s in-house hardware and software engineering teams.

In March 2023, we introduced Apple CarPlay integration.

In March 2023, we introduced wireless Apple CarPlay integration.

Scheduled Charging, introduced in February 2023, allows customers to plug in a Lucid Air to a charger and begin charging at a predetermined time.

In addition to these, we introduced several new features including Max A/C, Multitasking Widget, and Easy Entry, and made improvements to existing features including Highway Assist, SiriusXM, and Range Estimation.

In addition to these enhancements, we introduced several new features including Creature Comfort Mode for pets left in an otherwise unoccupied vehicle, Max A/C, Multitasking Widget, and Easy Entry, and made improvements to existing features including Highway Assist, SiriusXM, and Range Estimation.

In September, 2024, we added support for a new “Hey Lucid” vehicle voice assistant and made significant enhancements to our DreamDrive automated driving features as described below.

In November 2024, we released an OTA update for Lucid Air that significantly enhanced the audio experience in vehicles with the Surreal Sound Pro option and improved low volume level sound quality in all vehicles.

This OTA update also improved the in-car navigation system, now displaying traffic lights and stop signs in regions supporting this feature.

Additionally, as described below, this update included significant enhancements to our DreamDrive automated driving features.

• Controls Software.

The core technology in the Lucid Air and the Lucid Gravity is fully conceived in-house.

This includes a state-of-the-art computing platform, using our Ethernet Ring architecture, as well as intelligent fuse boxes and future proofed advance lighting systems, which is able to be upgraded with software to enable additional and improved features related to performance, range, and user experience.

In 2023, with the release of the Lucid Sapphire, an In-House Traction Control and Torque Vectoring system was designed, implemented, and calibrated on various surfaces, delivering the performance attributes which gained broad acclaim.

In 2024, with the Lucid Air rear-wheel drive, Regen Traction Control was developed to improve the performance of the vehicles in regen mode.

In 2024, we also introduced a no-regen mode as an additional option for Lucid Air customers.

Our charging software was developed fully in-house from 2020;

and in 2024, we released improvements to the software that led to 110V charging becoming 10% more efficient.

At the same time, we also introduced new control algorithms on the rear drive units which improved our efficiency and range.

• Lucid DreamDrive.

The Lucid Air is equipped with an extensive sensor suite, high on-board computing power, back-up systems for Advanced Driver Assistance Systems (“ADAS”) and, over time, increased levels of partial autonomy.

With 32 sensors onboard, the Lucid Air features one of the most comprehensive sensor suites among currently available production vehicles.

With up to 32 ADAS sensors onboard, the Lucid Air features one of the most comprehensive sensor suites among currently available production vehicles.

The Lucid Air includes certain features with Level 2 ADAS functionality and is capable of software upgrades via OTA updates.

Further, by collecting and analyzing fleet data, we expect to enhance our ADAS features and improve the Lucid experience over time.

Further, by collecting and analyzing fleet data, we continue to enhance our ADAS features and improve the Lucid experience.

In September 2024, an OTA update introduced major enhancements to DreamDrive Pro’s Level 2 Highway Assist feature, significantly improving lane centering performance and adding Active Curve Speed control to slow the vehicle in curves for a more comfortable experience.

A new Lane Change Assist feature was also added to Highway Assist, allowing vehicles to change lanes automatically after initiation by driver.

In addition, this release extended stop-and-go support for heavy traffic driver assistance, and added a 3-D visualization of surrounding vehicles and pedestrians in the instrument cluster display.

In November 2024, we added the Curb Rash Alert, which automatically detect curbs at low vehicle speeds and warn the driver of potential wheel scraping.

Lucid is the first-to-market with this feature and has filed a patent application.

• Lucid’s Micro Lens Array (“MLA”) Lighting.

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In a very compact form factor, the technology delivers exceptional contrast, high peak intensity, and high color uniformity.

This enables a long-illuminated distance in low-beam mode with good visibility on both sides of the road and low glare for oncoming traffic.

This technology enables a long-illuminated distance in low-beam mode with good visibility on both sides of the road and low glare for oncoming traffic.

The MLA also allows angular distribution adaptation without mechanical movement of the light module only by changing the electrical current to the LED.

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We built North America’s first greenfield, purpose-built EV manufacturing facilities, in Casa Grande, Arizona.

Lucid’s manufacturing activities are carried out at Lucid’s vehicle manufacturing plant, AMP-1, and dedicated powertrain manufacturing facility, LPM-1.

Lucid’s manufacturing activities are carried out at our vehicle manufacturing plant, AMP-1.

AMP-1 began production of the Lucid Air in September 2021.

Phase 2 of our manufacturing expansion kicked off in mid-2021 and production started in September 2023.

Phase 2 adds approximately 3 million square feet of manufacturing space to our facilities in Casa Grande.

These expansion activities are expected to enable a 90,000 vehicles per year installed capacity within 2024.

Within the AMP-1 phase 2 facility, we produce vehicles using innovative production processes and state-of-the-art equipment.

Key elements of our vehicle engineering enable efficient and advanced manufacturing processes with a high degree of quality control.

Future expansions of AMP-1 are being planned to account for the launch of future vehicle programs that may be manufactured in Arizona and to accommodate growth in sales volumes.

Our AMP-1 phase 2 facility will manufacture all current products as well as the Lucid Gravity.

By building the factory from a clean slate and leveraging decades of industry experience, we expect to achieve (i) greater capital efficiencies, (ii) greater operational efficiencies, and (iii) consistent production quality.

The key activities that currently take place in AMP-1 include body shell manufacture, painting of body shells, and general assembly.

All key manufacturing activities will take place at AMP-1 once the expansion is complete, including stamping, powertrain production, battery remanufacturing, and onsite logistics.

This vertical integration has allowed us to use decades of industry experience to achieve greater capital efficiencies, greater operational efficiencies, and consistent production quality.

We began the production of the Lucid Air at AMP-1 in September 2021.

The manufacturing expansion of phase 2 at AMP-1 kicked off in mid-2021, adding approximately 3 million square feet of manufacturing space to our facility.

In September 2023, we began producing vehicles at the AMP-1 phase 2 expanded facility, using innovative production processes and state-of-the-art equipment.

In 2024, we completed the phase 2 expansion project for all key manufacturing activities at AMP-1, including paint shop, stamping, a new body shop for the Lucid Gravity, and a majority of powertrain shop.

Our AMP-1 phase 2 facility currently manufactures the Lucid Air and the Lucid Gravity.

These expansion activities resulted in 90,000 units per year of installed capacity.

In the fourth quarter of 2024, we started to phase out operations at Lucid Powertrain Manufacturing-1 (“LPM-1”) plant from dedicated powertrain manufacturing to remanufacturing.

By May 2025, we expect that LPM-1 will focus on remanufacturing while AMP-1 phase 2 will house all dedicated powertrain operations.

In September 2023, we opened AMP-2, which was Saudi Arabia’s first-ever car manufacturing facility and our first manufacturing facility outside the United States, where we commenced SKD assembly operations.

The facility’s initial operation is re-assembly of SKD Lucid Air vehicle “kits” that are pre-manufactured at AMP-1.

It is expected to have installed annual capacity of 5,000 vehicles with the intent to scale up operations to meet demand in the Middle East and European markets.

A global footprint with localized manufacturing will enable us to serve market demand with locally manufactured vehicles.

We designed the production processes in AMP-1 and LPM-1 to be highly repeatable and scalable to standardize manufacturing operations and to build efficiency in our capital planning and deployment.

It has installed annual capacity of 5,000 vehicles with the intent to scale up operations to meet demand in the Middle East.

In 2024, we started the expansion of our AMP-2 facility to enable CBU unit production with target installed annual capacity of 150,000.

Once completed, AMP-2 is expected to have all the key manufacturing activities including stamping, body in white, painting, general assembly, and eventually powertrain production.

Our supplier partners remain key in delivering our plan.

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Lucid works closely with suppliers in the upfront development process and in supporting production needs and requirements.

In December 2022, we announced a multi-year sourcing agreement for lithium-ion batteries with Panasonic Energy Co., Ltd.

We have a multi-year sourcing agreement for lithium-ion batteries, a key component of our battery system, with Panasonic Energy Co., Ltd.

and certain of its affiliates.

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Our typical customer journey begins through our advanced digital platform.

We use several channels to educate customers regarding our brand identity, explain the creation of our technology and highlight the people behind our design and technology.

The goal is to cultivate a sense of brand loyalty with our customers.

We use several channels to educate customers regarding our brand identity, explain the creation of our technology, highlight the people behind our design and technology, and provide an easy gateway towards ordering and ownership.

The goal is to cultivate brand loyalty and affinity with our customers.

Our direct-to-consumer model allows customers the option of building vehicles to order or selecting from available cars via our digital platform.

This initial engagement drives customers to our website to learn more about our story and our vehicles.

On the website, customers can experience our online vehicle configurator, which provides an immersive and customizable opportunity to interact with our vehicles in a virtual setting.

From there, we provide the customer with the option to either place an order online or visit one of our retail stores or gallery locations, which we refer to as “Studios.” We believe that our direct-to-consumer sales model, combined with a digitally enhanced luxury experience through our website and a refined in-store experience, creates opportunities to tailor to each customer’s purchase and ownership preferences.

Customers have the option to visit a Studio in person, make their inquiries entirely online, or enjoy a combination of the two experiences.

In developing our Studios, we have built a network of retail spaces to enable customers to experience the brand and our products in locations that underscore our design aesthetic.

On the website, customers can experience our online vehicle configurator, which provides an opportunity to explore trims, colors, and features to determine the perfect Lucid for their needs.

From there, we provide the customer with the option to either schedule a test drive, place an order online, contact our sales department, or visit one of our retail stores or gallery locations, which we refer to as “Studios.” Our direct-to-consumer sales model, combined with a digitally enhanced luxury experience through our website and a refined in-store experience, creates opportunities to tailor to each customer’s purchase and ownership preferences and provide Lucid with a level of control and refinement essential to building loyalty and ambassadorship among our intenders and customers.

Through our omni-channel approach, Lucid intenders have the option to visit a Studio in person, make their inquiries entirely online, talk to an inside sales representative, or enjoy a combination of the three experiences with seamless handoffs.

In developing our Studios, we have built a network of retail spaces to enable customers to experience the brand and our products in locations that underscore our design aesthetic and allow the customers to experience our full product breadth through different sensory tools.

Like the Lucid Air and the Lucid Gravity, the interiors of Lucid Studios showcase color and material themes that represent specific locations within California as well as our focus on innovation with immersive technology experiences.

We intend our Studios to provide a pressure-free environment for our customers to comfortably experience the brand and our products.

Lucid Studios draw inspiration from the beauty, innovation, and diversity of our home state of California.

Lucid Studios draw inspiration from the beauty and innovation of our home state of California.

Retail locations serve both as our sales channels and marketing tools in high-foot-traffic locations within urban areas.

As of December 31, 2023, we had forty-five Studios and service center locations opened, including locations in Europe and Middle East markets.

We expect to increase coverage throughout North America, Europe, and Middle East markets in 2024.

These markets are continuing to adopt EV, and we believe that establishing a strong retail presence will enhance our opportunity to increase our share of our total addressable market.

With a focus on convenience, our service operations include vehicle and customer support at customers’ physical locations through our mobile service offerings and certified partners for roadside assistance and collision repairs, as well as through our network of brick-and-mortar service centers.

The Lucid Air is also designed to enable OTA updates and remote diagnostics.

Rather than investing in a proprietary charging network, we leverage third-party charging networks in North America and Europe.

In North America, we have partnerships with Electrify America and Electrify Canada.

In Europe, we have partnered with Bosch to aggregate over 1,000 networks across 29 European countries.

This gives our customers access to over 630,000 public AC & DC charge points throughout Europe.

These partnerships allow us to avoid the capital intensity of establishing our own high-power networks and provides our customers with easy access to established networks across the United States, Canada and Europe.

The Lucid Air is also compatible with Combined Charging System (“CCS”) based public and commercial charging stations.

Additionally, in 2025, our customers will also have access to the Tesla Supercharging network via a North American Charging Standard (“NACS”) adapter.

For at home charging, the Lucid Connected Home Charging Station can be installed to provide convenient, simple, and seamless charging at home.

As of December 31, 2024, we had 57 Studios and service center locations opened, including locations in North America, Europe , and Middle East markets.

We expect to increase coverage throughout these regions in 2025 .

Expanding our presence in existing and new geographies will increase our customer convenience, share of total addressable market, and overall brand awareness and consideration.

With a focus on convenience, our service operations include vehicle and customer support through our network of brick-and-mortar service centers, and at customers’ physical locations through our mobile service offerings.

Customers are also served through certified partners for roadside assistance and collision repairs.

We designed the Lucid Air to enable OTA updates and remote diagnostics.

We leverage third-party charging networks in our market regions, rather than investing heavily in proprietary fast-charging infrastructure or high-power networks.

Our Lucid App provides customers seamless Plug and Charge (“PnC”) access at partnering networks in North America and Europe, ensuring convenient charging options.

On Jan 31, 2025, we gained access to Tesla’s supercharging network in addition to the vast Combined Charging System infrastructure, which is expected to significantly enhance convenience and reduce concerns related to range anxiety.

The Lucid Gravity vehicles can use the Tesla Supercharger network with native the North American Charging Standard (“NACS”) charge port in the first quarter of 2025, while we expect the Lucid Air vehicles will be granted access to the network, via an adapter, in the second quarter of 2025.

For at home charging, the Lucid Connected Home Charging Station can be installed to provide convenient, simple, and seamless charging at home, or the Lucid mobile charging cable can plug into a variety of household outlets.

The Lucid Air now supports V2V charging and we expect to support further bi-directional capabilities with the Lucid Air and Lucid Connected Home Charging Station.

In 2025, we plan to launch the mobile charging cable in the KSA market, enhancing on-the-go charging as public infrastructure develops.

We have an agreement with the Government of Saudi Arabia, as represented by the Ministry of Finance, under which the Government of Saudi Arabia and its entities and corporate subsidiaries and other beneficiaries undertook to purchase up to 100,000 vehicles, with a minimum purchase quantity of 50,000 vehicles and an option to purchase up to an additional 50,000 vehicles over a ten-year period.

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Environmental standards applicable to us are established by United States laws and regulations and those of other jurisdictions in which we operate, standards adopted by regulatory agencies and the permits and licenses we are required to obtain.

Each of these sources is subject to

periodic modifications and what we anticipate will be increasingly stringent requirements.

Each of these sources is subject to periodic modifications.

Violations of these laws, regulations or permits and licenses may result in substantial civil and criminal fines, penalties and orders to cease the violating operations or to conduct or pay for corrective works.

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Many countries and U.S.

states have announced a requirement for the sale of zero-emission vehicles only within proscribed timeframes, some as early as 2030, and we as an EV manufacturer are already able to comply with these requirements across our entire product portfolio as we expand.

Our competitors, by contrast, will need to reconcile an expensive infrastructure with factories and equipment tailored for production of ICE vehicles, along with workforces trained to produce ICE vehicles and intellectual property portfolios geared for ICE vehicles.

states have announced a requirement for the sale of zero-emission vehicles only within prescribed timeframes, one as early as 2025, and we as an EV manufacturer are already able to comply with these requirements across our entire product portfolio as we expand.

Our competitors, by contrast, will need to reconcile an expensive infrastructure with factories and equipment tailored for production of internal combustion engine (“ICE”) vehicles, along with workforces trained to produce ICE vehicles and intellectual property portfolios geared for ICE vehicles.

Emissions Credits

We expect that the manufacture, sale, and/or registration of Zero Emission Vehicles (“ZEVs”) in various regions will earn certain regulatory credits that we can sell to other manufacturers.

This may include ZEV credits in up to 16 U.S.

jurisdictions referred to collectively as the “ZEV States” that require compliance with program mandates (California, Colorado, Connecticut, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia and Washington).

Lucid’s sales of ZEVs also generate credits that can be sold to other manufacturers under several other regulatory schemes that control emissions from automobiles.

This would also include Corporate Average Fuel Economy (“CAFE”) credits under the U.S.

Department of Transportation standards, greenhouse gas and other emission limitations credits from U.S.

Environmental Protection Agency (“EPA”) programs, Low-Emission Vehicle (“LEV”) credits in California and most of the ZEV States plus Delaware, Pennsylvania and the District of Columbia, and similar credits in each of Europe, Canada, and Middle East.

ZEV credits are calculated under applicable regulation and are paid in relation to ZEVs sold and registered, including BEVs.

Under several regulatory schemes to control emissions from automobiles Lucid’s sales of ZEVs generate credits that can be sold to other manufacturers that do not comply with regulatory standards.

federal level, credits may include Corporate Average Fuel Economy (“CAFE”) credits under U.S.

Department of Transportation standards, greenhouse gas (“GHG”) and other emission limitations credits from EPA programs.

Similar national-level programs exist in other markets, including the European Union, Switzerland, Canada, and Saudi Arabia.

It may also include credits in up to 17 U.S.

jurisdictions referred to collectively as the “ZEV States” that require compliance with ZEV program mandates (California, Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia).

Low-Emission Vehicle (“LEV”) credits may also be generated and sold in California and most of the ZEV States plus Pennsylvania.

ZEV credits are calculated under applicable regulation and are paid in relation to ZEVs manufactured and registered, including BEVs.

ZEV programs generally assign ZEV credits to each vehicle manufacturer.

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For reference, the ZEV credit requirement in California was 17% in 2023 and will rise to 22% in 2025.

If a vehicle manufacturer does not sell enough EVs to meet its quota, it can choose to buy credits from other manufacturers who do or it would be required to pay a $5,000 fine for each credit it is short.

Under current regulations which are valid through the end of Model Year 2025, if a vehicle manufacturer does not sell enough EVs to meet its quota, it can choose to buy credits from other manufacturers who do, or it would be required to pay a $5,000 fine for each credit it is short.

We expect this requirement to provide an opportunity to generate revenue from the sale of ZEV credits.

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• Customer tax credits and other benefits arising from government regulation may spur interest in our products and business.

Our EVs qualify for the $7,500 federal tax credit under IRS Section 45W when sold for commercial uses, including those leased to customers, and may be eligible for incentives for EVs such as in Norway, which currently waives various toll charges and road taxes for BEVs and high-occupancy lane driving privileges available to purchasers in certain U.S.

states such as California.

• We may be eligible for various tax credits, abatements and other benefits, including:

the federal 30C Alternative Fuel Infrastructure tax credit for alternative fuel infrastructure;

In the United States, our EVs qualify for the $7,500 federal tax credit under IRS Section 45W when sold for commercial uses, including those leased to customers, and future vehicles may be eligible for the 30D clean vehicle tax credit.

Our vehicles may also be eligible for purchase incentives in other jurisdictions, such as Norway, and certain U.S.

states such as California that offer high-occupancy lane driving privileges and other benefits.

• We are eligible for various tax credits, abatements and other benefits, including:

the federal 45X Advanced Energy Production Credit;

the federal 30C Alternative Fuel Infrastructure tax credit for alternative fuel infrastructure;

the Qualified Facilities tax credit in Arizona;

a California sales and use tax exclusion under the California Alternative Energy and Advanced Transportation Financing Authority;

and other hiring and job training grants and income tax credits in both Arizona and California.

and other hiring and job training grants and income tax credits in Arizona, California, and Michigan.

• We may also be eligible for a loan pursuant to the Advanced Technology Vehicles Manufacturing Loan Program administered by the U.S.

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Clean Air Act requires that we obtain a Certificate of Conformity issued by the EPA and a California Executive Order issued by the California Air Resources Board (“CARB”) certifying that our vehicles comply with applicable emissions requirements.

A Certificate of Conformity is required for vehicles sold in the United States, and an Executive Order from CARB is required for vehicles sold in states that

have adopted California standards.

A Certificate of Conformity is required for vehicles sold in the United States, and an Executive Order from CARB is required for vehicles sold in states that have adopted California standards.

CARB sets the California standards for emissions control for certain regulated pollutants for new vehicles and engines sold in California.

States that have adopted the California emission standards as approved by EPA also recognize the CARB Executive Order for sales of vehicles.

In addition to California, there are 17 states plus the District of Columbia that have adopted California’s stricter emissions LEV standards, including New York, Massachusetts, Vermont, Maine, Pennsylvania, Connecticut, Rhode Island, Washington, Oregon, New Jersey, Maryland, Delaware, Colorado, Minnesota, Nevada, Virginia and New Mexico.

In addition to California, there are 16 states plus the District of Columbia that have adopted California’s stricter emissions LEV standards, including New York, Massachusetts, Vermont, Maine, Pennsylvania, Connecticut, Rhode Island, Washington, Oregon, New Jersey, Maryland, Delaware, Colorado, Minnesota, Nevada and New Mexico.

Although the Lucid Air has zero emissions, we are required to seek an EPA Certificate of Conformity and, for vehicles sold in California or any of the other 17 U.S.

jurisdictions that have adopted the stricter California emission standards, a CARB Executive Order.

Compliance with the program is required in each state two model years following adoption of the program.

Vehicle Safety and Testing

Our vehicles are subject to, and will be required to comply with, numerous regulatory requirements established by the National Highway Traffic Safety Administration (“NHTSA”), including applicable U.S.

Our vehicles are subject to, and are required to comply with, numerous regulatory requirements established by the National Highway Traffic Safety Administration (“NHTSA”), including applicable U.S.

Federal Motor Vehicle Safety Standards (“FMVSS”).

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Numerous FMVSS will apply to our vehicles, such as crash-worthiness requirements, crash avoidance requirements and EV-specific requirements.

We will also be required to comply with other federal laws and regulations administered by NHTSA, including, among other things, ensuring our vehicles do not contain defects related to motor vehicle safety, recall requirements, the CAFE standards, Theft Prevention Act standards, consumer information labeling requirements, reporting required notices, bulletins and other communications, Early Warning Reporting, foreign recall reporting, and owner’s manual requirements.

We are also required to comply with other federal laws and regulations administered by NHTSA, including, among other things, ensuring our vehicles do not contain defects related to motor vehicle safety, recall requirements, the CAFE standards, Theft Prevention Act standards, consumer information labeling requirements, reporting required notices, bulletins and other communications, Early Warning Reporting, foreign recall reporting, and owner’s manual requirements.

The Automobile Information and Disclosure Act requires manufacturers of motor vehicles to disclose certain information regarding the manufacturer’s suggested retail price, optional equipment and pricing.

In addition, this law requires inclusion of city and highway fuel economy ratings, as determined by the EPA, as well as crash test ratings as determined by NHTSA if such tests are conducted.

We intend to expand our offerings outside of the United States, and in connection with such expansion our vehicles will be subject to foreign safety, environmental and other regulations.

We intend to continue expanding our offerings outside of the United States, and in connection with such expansion, our vehicles will be subject to foreign safety, environmental and other regulations.

Many of those regulations are different from those applicable in the United States and may require redesign and/or retesting.

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member state.

In addition to the various territorial legal requirements we are obligated to meet, the Lucid Air is engineered with the expectation that it will deliver overall five-star performance in the two main voluntary vehicle safety performance assessment programs, the U.S.

New Car Assessment Program (“NCAP”) and the Euro NCAP.

Five-star is the maximum attainable score.

In addition to the various territorial legal requirements we are obligated to meet, the Lucid Air has earned five-stars, the highest possible overall safety rating, from the two main voluntary vehicle safety performance assessment programs, the NHTSA New Car Assessment Program (“NCAP”) and Euro NCAP.

These programs have introduced several additional safety related tests aimed at improving the safety of passenger vehicles, both for occupants and pedestrians involved in collisions with vehicles.

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ADAS Regulations

We have equipped the Lucid Air with certain advanced driver assistance features.

We have equipped our vehicles with certain advanced driver assistance features.

Generally, laws pertaining to driver assistance features and self-driving vehicles are evolving globally, and in some cases may create restrictions on advanced driver assistance or self-driving features that Lucid may develop.

While there are currently no U.S.

federal regulations specifically pertaining to self-driving vehicles or self-driving equipment, NHTSA has published recommended guidelines on self-driving vehicles and retains the authority to investigate and/or act on the safety of any vehicle, equipment or features operating on public roads.

states also have legal restrictions on the operation, registration or licensure of self-driving vehicles, and many other states are considering similar restrictions.

This regulatory patchwork increases the legal complexity with respect to self-driving vehicles in the United States.

In markets that follow the regulations of the United Nations Economic Commission for Europe, some requirements restrict the design of advanced driver assistance or self-driving features, which can compromise or prevent their use entirely.

federal regulations specifically pertaining to autonomous vehicles or autonomy equipment, NHTSA has published recommended guidelines on autonomous vehicles and retains the authority to investigate and/or act on the safety of any vehicle, equipment or features operating on public roads.

states also have legal restrictions on the operation, registration or licensure of autonomous vehicles, and many other states are considering similar restrictions.

This regulatory patchwork increases the legal complexity with respect to autonomous vehicles in the United States.

In markets that follow the regulations of the United Nations Economic Commission for Europe, some requirements restrict the design of advanced driver assistance or autonomous features, which can compromise or prevent their use entirely.

Other applicable laws, both current and proposed, may hinder the path and timeline to introducing such features in the markets where they apply.

Other jurisdictions, including China, continue to consider self-driving regulation.

Any implemented regulations may differ materially from those in the United States and Europe, which may further increase the legal complexity of advanced driver assistance and self-driving features and limit or prevent certain features.

Jurisdictions, including China, have implemented autonomous vehicle regulation while others continue to consider new regulation.

Any implemented regulations may differ materially from those in the United States and Europe, which may further increase the legal complexity of advanced driver assistance and autonomous features and limit or prevent certain features.

Automobile Manufacturer and Dealer Regulation

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however, we intend to oppose such efforts to limit our ability to operate and intend to proactively support legislation, and litigation when necessary, that enables our business model.

Battery Safety and Testing Regulation

Our battery packs are designed to conform to mandatory regulations that govern transport of “dangerous goods,” defined to include lithium-ion batteries, which may present a risk in transportation.

Battery Safety and Testing Regulations

We design our battery packs to conform to mandatory regulations that govern transport of “dangerous goods,” defined to include lithium-ion batteries, which may present a risk in transportation.

The governing regulations, which are issued by the Pipeline and Hazardous Materials Safety Administration, are based on the United Nations (“U.N.”) Recommendations on the Safe Transport of Dangerous Goods Model Regulations and related U.N.

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We use lithium-ion cells in the high voltage battery packs in our vehicles.

The use, storage and disposal of battery packs is regulated under federal law.

Our battery packs are intended to meet the applicable compliance requirements of the UN Manual of Tests and Criteria demonstrating our ability to ship battery packs by any method.

The use, storage and disposal of battery packs is regulated under federal and state laws.

We also design our battery packs to comply with the United Nations Economic Commission for Europe (“UNECE”) R100 regulation necessary for type approval in the European Union (“EU”) as well as the CE requirements necessary to import or sell EVs in the EU.

Our battery packs are tested for compliance with applicable requirements of the UNECE Manual of Tests and Criteria demonstrating our ability to ship battery packs by any method.

These tests include:

• Altitude simulation — simulating air transport;

• Thermal cycling — assessing cell and battery seal integrity;

• Thermal cycling — assessing cell and battery seal integrity, as well as cell and battery thermal stability;

• Vibration — simulating vibration during transport;

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• External short circuit — simulating an external short circuit.

• Overcharge — evaluating the ability of a rechargeable battery to withstand overcharging.

We equip our battery systems with a set of passive and active safety features to help ensure the battery always operates within the design envelope and fails safe in case of abnormal conditions.

We test our battery packs for compliance with applicable requirements of the UNECE R100 regulation demonstrating battery safety.

These tests include:

• Vibration — simulating vibration during driving;

• Thermal cycle — assessing pack thermal stability in elevated temperatures;

• Fire resistance — assessing the ability of the pack to sustain exposure to large flames without explosion;

• External short circuit — assessing the ability of the pack to fail safe when exposed to external short circuit;

• Overcharge protection — assessing the ability of the pack to fail safe when it is attempted to overcharge;

• Overdischarge protection — assessing the ability of the pack to fail safe when it is attempted to overdischarge;

• Overtemperature protection — assessing the ability of the pack to fail safe when it overheats;

• Overcurrent protection — assessing the ability of the pack to fail safe when it is exposed to overcurrent conditions;

• Thermal event warning — assessing the ability of the pack to detect a thermal event and generate a warning to the driver;

• Thermal propagation — assessing the ability of the pack to tolerate a single cell thermal event safely.

Data Privacy and Cybersecurity Regulation

We are subject to a variety of increasingly stringent federal, state, local and international laws and regulations relating to data privacy and cybersecurity, including, among other laws and regulations, the E.U.’s General Data Protection Regulation (“GDPR”), the UK General Data Protection Regulation (“UK GDPR”) (i.e.

a version of the GDPR as implemented into the law of the United Kingdom), Saudi Arabia’s Personal Data Protection Law (“PDPL”), the rules and regulations promulgated under the authority of the Federal Trade Commission (“FTC”), the Gramm Leach Bliley Act, the California Consumer Privacy Act of 2018 (as amended by the California Privacy Rights Act of 2020, collectively, “CCPA”), certain other comprehensive state data privacy and cybersecurity laws and regulations, and various state data breach notification laws.

We are subject to, or otherwise affected by, a variety of increasingly stringent federal, state, local and international laws and regulations relating to data privacy and cybersecurity, including, among other laws and regulations, contractual obligations, and industry standards that impose certain obligations and restrictions with respect to the processing of personal information of our employees, customers, and other third-party individuals.

The EU’s General Data Protection Regulation (“GDPR”), Cyber Resiliency Act, Data Act and AI Act, as well as other global regulations such as the United Kingdom General Data Protection Regulation (i.e., a version of the GDPR as implemented into the law of the United Kingdom), Saudi Arabia’s Personal Data Protection Law (“PDPL”), the rules and regulations promulgated under the authority of the Federal Trade Commission of the United States, the Gramm Leach Bliley Act, the California Consumer Privacy Act of 2018 (as amended by the California Privacy Rights Act of 2020), certain other comprehensive state data privacy and cybersecurity laws and regulations, and various state data breach notification laws.

We are also impacted by regulations obligating us to share vehicle repair-related information with third parties, including repair shops and repair tool hardware developers, under what are commonly called “right-to-repair” laws.

In addition, the United Nations Economic Commission for Europe has introduced regulations governing connected vehicle cybersecurity in the E.U.

which are mandatory for all new vehicle types from July 2022 and all new vehicles produced from July 2024.

In addition, the UNECE has introduced regulations governing connected vehicle cybersecurity in the EU which are mandatory for all new vehicle types from July 2022 and all new vehicles produced from July 2024, and we are required to comply with the vehicle certification process and maintenance of a Cybersecurity Management System.

See “Risk Factors — Risks Related to Cybersecurity and Data Privacy” for more information regarding applicable cybersecurity and data privacy laws and regulations and risks related to cybersecurity and data privacy and “Item 1C — Cybersecurity” for more information regarding our cybersecurity risk management program.

We face competition from both traditional automotive OEMs and an increasing number of newer companies focused on electric and other alternative fuel vehicles.

We face competition from both traditional automotive OEMs and newer companies focused on electric and other alternative fuel vehicles.

We expect this competition to increase, particularly as the transportation sector continues to shift towards low-emission, zero-emission, or carbon neutral solutions.

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These competitors also compete with us in recruiting and retaining qualified research and development, sales, marketing and management personnel, as well as in acquiring technologies complementary to, or necessary for, our products.

Additional mergers and acquisitions in the EV and luxury automotive markets may result in even more resources being concentrated in our competitors.

Additional mergers and acquisitions or joint venture agreements in the EV and luxury automotive markets may result in even more resources being concentrated in our competitors.

Intellectual Property

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There can be no assurance that these agreements will be self-executing or otherwise provide meaningful protection for our trade secrets or other intellectual property or proprietary information or technology.

In addition, our trade secrets may otherwise become known or be independently discovered by competitors.

In addition, our trade secrets may otherwise become known or be independently discovered by our competitors.

To the extent that our commercial partners, collaborators, employees, contractors, and consultants use intellectual property owned by others in their work for us, disputes may arise as to the rights in related or resulting know-how and inventions.

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HUMAN CAPITAL RESOURCES

At Lucid, we strongly believe in the power of our talented employees and partners to create, build, and support the world’s most captivating luxury EV available in the market.

At Lucid, we strongly believe in the power of our talented employees and partners to create, build, and support the world’s most advanced EVs available in the market.

We seek to attract and retain employees whose respective professional and personal backgrounds can help craft an unparalleled suite of state-of-the-art, technologically advanced, California-inspired vehicles for consumers worldwide.

Towards these goals, as of December 31, 2024, we employed approximately 6,800 full-time employees globally.

Our employees are primarily based at our headquarters in Newark, California, at our regional headquarters in Riyadh, Saudi Arabia, at our EV manufacturing facilities in Casa Grande, Arizona, and King Abdullah Economic City (“KAEC”), Saudi Arabia, and at our retail stores and service centers throughout the United States and Canada, Europe, and Saudi Arabia.

We believe that our mission-first passion to inspire the adoption of sustainable transportation would not be possible without a broad array of experiences, professional and personal backgrounds, and individual identities across our team.

We work hard to attract a pool of diverse candidates for all open positions.

As of December 31, 2023, approximately 71% of Lucid’s employees in the United States were identified as Black or African American, Hispanic or Latino, Asian, American Indian or Alaskan Native, Native Hawaiian or Pacific Islander, and two or more races or ethnicities.

Our employees are primarily based at our headquarters in Newark, California, at our regional headquarters in Riyadh, Saudi Arabia, at our satellite location in Southfield, Michigan, at our EV manufacturing facilities in Casa Grande, Arizona, and King Abdullah Economic City (“KAEC”), Saudi Arabia, and at our retail stores and service centers throughout the United States and Canada, Europe, Saudi Arabia, and United Arab Emirates.

We believe that our mission-first passion to advance the state-of-the-art of EV technology for the benefit of all would not be possible without a broad array of experiences and professional and personal backgrounds across our team.

When design is led by inspiration, invention by insight, and engineering by experience, we believe that anything is possible.

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We are a team that values innovation, harnesses our passions, and embraces the entrepreneurial mind of limitless potential.

We recognize, welcome, and appreciate the unique experiences and diverse perspectives that each of our employees bring with them, that in turn fuel our shared successes.

We recognize, welcome, and appreciate the unique experiences and a broad range of perspectives that each of our employees bring with them, that in turn fuel our shared successes.

We strive to foster an open, egalitarian culture where all ideas and concerns can be raised to any member of leadership.

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This approach helps fuel innovation, prevent stumbling blocks, and engages all employees towards being a member of one, unified team.

We have instilled an expectation and culture of safety in our workplace.

This year we added “customer focus” to our core values to ensure that everything we do is in service to our internal and external customers and stakeholders.

We are bringing our core values to life by engaging members of the workforce in helping us define the expected behaviors for each of our core values.

These values are woven into our performance management systems and help us identify talent.

In addition to Customer Focus, our values include:

• Integrity in Action;

• Breakthrough Innovation;

• Passion for Excellence;

• Act With Urgency;

• Ownership Mindset.

We instill an expectation and culture of safety in our workplace.

As a manufacturing company, we are committed to ensuring workplace health, safety and environmental protection for our employees, suppliers, business partners, customers, and all our stakeholders.

We protect the health and safety of our employees through a proactive and systematic approach to safety and health management.

To demonstrate this, in 2023, we maintained ISO 45001 and ISO 14001 certifications for our Arizona manufacturing site which validates our system of continuous improvement to reduce occupational risk and improve worker safety.

Diversity, Equity and Inclusion

At Lucid, diversity, equity, inclusion is an essential part of who we are.

We value the diverse perspectives, experiences, and identities of our employees who reflect the communities we serve.

Our differences spark innovation and drive us forward, which is why we are committed to fostering an equitable and inclusive culture that empowers us to bring our best selves to work and achieve our mission to build a better future together.

Our people centric and data-driven DEI strategy focuses on three pillars:

Growing a diverse workforce by attracting, hiring, and promoting talent from all backgrounds

Fostering an equitable and inclusive culture by promoting policies, practices, and programs that support and engage all employees

To demonstrate this, in 2024, we maintained ISO 45001 and ISO 14001 certifications for AMP-1 and achieved ISO 45001 and ISO 14001 certifications for AMP-2, which validates our system of continuous improvement to reduce occupational risk and improve worker safety.

In 2024, the AMP-2 manufacturing site celebrated over 2 million man-hours of construction without a lost time injury.

Our Workforce and Commitment to Inclusion

At Lucid, inclusion is an essential part of who we are.

We value the broad range of perspectives and experiences of our employees who reflect the communities we serve.

Our differences spark innovation and drive us forward, which is why we are committed to fostering an inclusive culture that empowers us to bring our best selves to work and achieve our mission to build a better future together.

Our people centric and data-driven workforce strategy focuses on three pillars:

Growing our workforce by attracting, hiring, and promoting talent from all backgrounds

Fostering an inclusive culture by promoting policies, practices, and programs that support and engage all employees

Being key contributors to the community by engaging with and investing in local communities where we operate

Of note, Lucid sponsors seven employee resource groups to support and empower historically excluded affinities:

Women at Lucid, Pride at Lucid, Veterans at Lucid, Black at Lucid, Hola at Lucid, AaPI at Lucid, and Sustainability at Lucid.

These seven groups help foster Lucid’s inclusive and dynamic workforce while helping to fuel our business objective of centering our suite of vehicles on the human experience.

Of note, Lucid sponsors nine employee resource groups to support and empower our employees.

Membership in employee resource groups is open to all Lucid employees.

Compensation and Benefits

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ENVIRONMENTAL IMPACT

As an EV company relentlessly focused on efficiency, our products are a key part of transforming the transportation space to a more sustainable model.

But having sustainable products alone is not enough;

we are dedicated to a holistic environmental, social, and governance (“ESG”) strategy to maximize our ability to positively impact our environment and society, meet investor expectations, and instill pride and purpose in our employees and customers.

• ESG Strategy :

Our dedicated ESG team is driving our efforts to implement leading environmental, social, and governance strategy and program.

In 2021, we completed a high-level ESG materiality assessment to identify key topics for our ESG strategy.

This effort included insight on investors, ratings and rankings, company leadership interviews, research on peers and consumer trends, and a business/investor media review.

During 2022 and 2023, we continued to keep a pulse on the dynamic ESG field to allocate resources to the most significant ESG topics to our business.

Our ESG Steering Committee, comprised of senior executive leaders, meets on a regular basis to drive our strategic roadmapping in the ESG topics such as climate and GHG emissions, DEI, and ESG partnerships.

We enhanced our ESG disclosures, and plan to continue to build our internal capabilities for data collection and disclosure for high-level reporting on ESG performance, in alignment with leading industry standards.

• United Nations Global Compact:

In April 2023, we joined the United Nations Global Compact (“UN Global Compact”), the world’s largest voluntary corporate sustainability initiative that seeks to mobilize a global movement of sustainable companies and stakeholders.

The UN Global Compact challenges companies to conduct business responsibly by aligning their operations and strategies with the United Nations’ Ten Principles relating to human rights, labor, environmental practices, and anti-corruption.

By joining, we have committed to act in accordance with the UN Sustainable Development Goals.

Member organizations commit not only to sustainable practices but also to enhancing transparency.

Signatories report yearly on their commitment to the universal sustainability principles and development goals.

• Product Efficiency:

As a technology and EV company focused on efficiently using our planet’s precious resources, we are proud that sustainability has been at the core of our business since day one.

We are committed to improving environmental and social impacts across our value chain and helping ensure a robust governance structure to support our efforts.

We believe in the importance of accountability and transparency, and we published our first sustainability report in 2024 that contains the details of our program.

Highlights of our sustainable impact include:

Efficiency is a key measure of the in-house technology embedded in our products, contributing to our goal of a best-in-class experience for our customers while benefiting the environment.

The Lucid Air continues to be the longest-range fully electric car (the Lucid Air Grand Touring has an EPA-estimated range of 516 miles per charge) and has some of the highest driving efficiency (the Lucid Air Pure with 4.74 miles of range per kilowatt-hour), and the Lucid Air has one of the lowest coefficient of drag of any vehicle on the market (0.197 coefficient of drag with 19-inch wheels).

These achievements are based on a relentless focus on efficiency through the EV powertrain, battery pack and system, and a highly aerodynamic design.

This focus on efficiency also enables our vehicles to travel further per electron of energy.

The Lucid Air continues to be the longest-range fully electric vehicle (the Lucid Air Grand Touring has an EPA-estimated range of 512 miles per charge with 19-inch wheels) and the most efficient vehicle (the Lucid Air Pure with 5.0 miles of range per kilowatt-hour), and the Lucid Air has one of the lowest coefficients of drag of any vehicle on the market (0.197 coefficient of drag with 19-inch wheels).

These achievements are based on a relentless focus on efficiency through the EV powertrain, battery pack and system, and an aerodynamic design.

This focus on efficiency also enables our vehicles to travel further per kilowatt-hour.

Each extra mile that we extract per kilowatt-hour of energy means less energy required and fewer carbon emissions from the electrical grid.

This same efficient technology and approach enables the possibility of vehicles with smaller, lower-cost battery packs that retain competitive range — which in turn would benefit the environment by requiring fewer battery cells per vehicle.

• Future Adaptations of our Technology:

We are exploring opportunities to adapt and expand the impact of our technology.

For example, by providing our advanced technology access to other organizations and researching other use cases for our compelling technology, we can spread the benefits of efficiency and enable EV adoption through and beyond Lucid’s own vehicles.

Our state-of-the-art technology is showcased in the execution of the award-winning the Lucid Air lineup.

The industry-topping capabilities of the Lucid Air are a compelling proof point for the growing interest in getting access to our technology.

In 2023, we entered into the Strategic Technology Arrangement with Aston Martin to provide them technology access to our powertrain and battery system technology, which will be at the center of their all-new in-house battery EV platform.

This landmark arrangement marks the first such relationship for Lucid, a realization of a vision that expands the reach of Lucid's products, paves the way for more mainstream applications, and accelerates electrification in the automotive industry.

• Environmental Operations:

From our production facility in Casa Grande, Arizona to our vehicle reassembly facility in Saudi Arabia, we have designed our manufacturing sites to minimize carbon emissions where practical through energy efficiency.

Our factory in Casa Grande, Arizona, is the first greenfield EV factory in North America, and it was designed to minimize carbon emissions where practical through energy efficient design and plans for renewable energy generation onsite.

We strive to reduce the environmental impact of manufacturing while maintaining our relentless drive to produce high-quality vehicles for our customers.

We currently have up to a 1 mega-watt (“MW”) capacity solar power system in Arizona (with a total capacity of up to 2 MW including our headquarters in California) and we are actively working to increase renewable energy generation.

Our operations pair with an environmental, health, and safety policy that encompasses training, measurement, and monitoring of data, and corrective actions for continuous improvement.

Additionally, to emphasize our focus on quality, environment, and occupational health and safety, our Arizona factory has been ISO 9001, 45001, and 14001 certified, a globally recognized Quality Management System (“QMS”), Occupational Health and Safety Management System (“OH&S MS”), and Environmental Management System (“EMS”) respectively.

This same efficient technology and approach enables the possibility of vehicles with smaller, lower-cost battery packs that retain competitive range, —which would benefit the environment by requiring fewer battery cells per vehicle.

Environmental, Social, and Governance (“ESG”) Strategy:

Our dedicated ESG team continues to drive our efforts to implement thoughtful ESG strategies and programs.

We base our priorities on a high-level ESG materiality assessment to identify key topics for our strategy.

This effort includes insight from investors, ratings and rankings, Company leadership interviews, research on peers and consumer trends, and a media review.

Our ESG Steering Committee, established in 2021, is comprised of senior executive leaders who meet on a regular basis to drive our strategy on ESG topics.

We recognize that sound governance practices are critical to ethical business practices and our overall success as an organization and business.

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a majority independent Board under SEC and Nasdaq rules;

a diverse Board with 3 female directors and 4 members of under-represented communities;

a well-qualified Board with broad range of skills, backgrounds, and experiences, which includes 4 female directors and 5 members of under-represented communities;

an independent chairman of the Board;

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• Compliance:

We are implementing a robust compliance program centered around a clear statement of principles and an expectation for both legal compliance and high ethical standards.

We intend to achieve these goals through ongoing training and discussions with our employees, clear policies and guidelines, internal controls over financial transactions, technological solutions to automate screenings for legal compliance and a reporting hotline which enables employees and service providers to share allegations of any legal or ethical matters on an anonymous basis.

We continue to enhance our compliance program centered around a clear statement of principles and an expectation for both legal compliance and high ethical standards.

We intend to achieve these goals through ongoing training of our contractors and employees, due diligence of our suppliers, clear policies and guidelines, internal controls over financial transactions, technological solutions to automate screenings for legal compliance and a reporting hotline which enables employees and service providers to share allegations of any legal or ethical matters on an anonymous basis.

AVAILABLE INFORMATION

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Our SEC filings are available on the SEC’s website at www.sec.gov.

Our website, the SEC’s website and the information contained therein or linked thereto are not part of this Annual Report.

Our website, the SEC’s website and the information contained therein or linked thereto are not a part of this Annual Report.

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What changed 10-K

Item 1. Business