US electric vehicle manufacturer Lucid Group has reduced its local workforce by 12% to strengthen profitability against weakening demand for premium-priced models.

The job cuts exclude hourly production staff at the company’s Arizona manufacturing site, a spokesperson told Reuters, without specifying how many positions were eliminated.

Regulatory documents referenced in the report indicate that Lucid had approximately 6,800 full-time employees globally in 2024.

To stimulate demand, the carmaker last year rolled out discounts and promotional incentives for its luxury Air sedans, as elevated borrowing costs prompted consumers to postpone high-value purchases.

In November, Lucid introduced the Gravity Touring SUV, priced from $79,900, marking a lower entry point compared with much of its traditionally six-figure line-up.

The company delivered 5,345 vehicles in the fourth quarter, with strong uptake of the more affordable Gravity model helping to counter softer demand after US tax incentives expired.

Lucid said last year it intends to launch a midsize electric SUV in 2026.

The report said the company is concentrating on ramping production of its midsize platform, advancing its driver-assistance software, and expanding sales of both the Air sedan and Gravity SUV.

Just Auto has reached out to Lucid Group for comment on the matter.

Separately, Lucid, Nuro and Uber last month presented production-ready robotaxis at the Consumer Electronics Show 2026, outlining progress on a global autonomous ride-hailing programme.

The partners said on-road testing began in December 2025 to support a planned commercial debut later this year in the San Francisco Bay Area.

In October last year, Lucid Group announced plans to integrate Nvidia’s Drive AV platform into its midsize electric vehicle range, as part of a roadmap aimed at achieving Level 4 consumer autonomy.