Lucid Air market and safety challenges

The Lucid Air luxury electric sedan has faced significant market and operational challenges. Initial reports indicated rapid value depreciation, with data suggesting the vehicle could lose approximately 62.7 percent of its value within five years. In the United States, some 2023 models saw value drops of roughly 56 percent in just three years, driven in part by manufacturer-led discounts and the introduction of more affordable versions.

Following these market trends, Lucid Group issued its largest recall to date, affecting 27,185 Air sedans in the United States. The National Highway Traffic Safety Administration (NHTSA) identified a fire risk linked to an exterior lighting circuit that could overheat and cause light failure. Specifically, a software defect in the software-controlled electronic fuse (eFuse) may fail to provide sufficient overcurrent protection, allowing circuits to run at excessive amperage. This defect can lead to overheating, smoke, or fire, and may cause malfunctions in headlights or the center high-mounted stop lamp. The defect may also lead to exterior light failures, which increases the risk of crashes.

Lucid has reported awareness of three fire incidents, four reports of smoke, and 33 warranty claims related to damaged wiring. The recall affects model years 2022 through 2026. To resolve the issue, Lucid has released an over-the-air (OTA) software update (version 2.10.0 or later) that lowers the eFuse protection threshold and prevents faulted circuits from re-energizing during a single key cycle. As of recent filings, approximately 20,719 vehicles had already received the update, leaving 6,466 vehicles requiring the fix. The NHTSA has advised owners of vehicles that have not yet been updated to park their cars outdoors and away from buildings or other vehicles. This recall occurs as the company undergoes an “operational reset” following negative second-quarter earnings and recent layoffs.