Lucid Motors has appointed Silvio Napoli as its new CEO, concluding a protracted search following the abrupt resignation of former CEO, Peter Rawlinson. Napoli, who has had a long career with Schindler Group, will also join Lucid’s board of directors.
In conjunction with the leadership change, Lucid announced a $200 million investment from Uber, which plans to acquire an additional 25,000 units of Lucid’s upcoming mid-sized vehicle, raising Uber’s total commitment to $500 million and its minimum order to 35,000 units. Additionally, Lucid’s majority stakeholder, the Saudi Arabian Public Investment Fund, has pledged another $550 million towards the company’s shares.
These developments come at a critical time for Lucid Motors, as they work to boost production and sales of their second model, the Gravity SUV, after facing challenges with the market uptake of their Air sedan. Lucid is also preparing to launch its first of three vehicles based on a new mid-sized platform, aimed at attracting buyers in the $50,000 range.
To streamline operations and reduce costs, Lucid has made significant workforce reductions, laying off approximately 12% of its employees earlier this year, and further decreasing contractor numbers at its Arizona factory as part of its strategic restructuring.
Silvio Napoli has been appointed CEO to replace Marc Winterhoff, who has served as interim CEO. Winterhoff’s tenure has been marked by multiple quality issues with the Gravity SUV. Napoli, however, will not assume the CEO role immediately. He must first obtain work authorization in the U.S. but will contribute as an executive director on the board until that process is complete.
Financially, Napoli’s compensation package includes a base salary of $1.5 million, with a relocation allowance of $1 million. Furthermore, he will receive a bonus package and stock grants that could potentially earn him tens of millions based on company performance.
Uber’s investment aligns with its plans to expand a luxury robotaxi service using modified Gravity SUVs in San Francisco. This follows a previous $300 million investment from Ubers last July, along with an order for 20,000 Gravity SUVs. The latest agreement for additional mid-sized vehicles appears to adjust some of the prior Gravity SUV orders.
Moreover, the Saudi investment marks a continuation of the support that began with an initial rescue investment in 2018, signalling ongoing confidence in Lucid’s long-term potential. As the company navigates its challenges, the leadership transition and new financial commitments are crucial to its future growth and stability.
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