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COMMITMENTS AND CONTINGENCIES | 6 Months Ended
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Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contractual Obligations As of June 30, 2026 and December 31, 2025, the Company had $0.7 billion and $0.9 billion in commitments related to AMP-1 and AMP-2 plant and equipment, respectively. These commitments represent future expected payments on open purchase orders entered into as of June 30, 2026 and December 31, 2025. The Company’s non-cancellable long-term commitments primarily related to certain inventory component purchases. As of June 30, 2026, pursuant to the terms of agreements the Company entered into in connection with the supply of lithium-ion battery cells, the Company had remaining minimum purchase commitments of an aggregate of approximately $2.47 billion, calculated using the current base prices, which could vary period-to-period primarily as a result of changes in raw material indexes. The estimated future payments having a remaining term in excess of one year as of June 30, 2026 were as follows (in thousands):
Years ended December 31, | Minimum Purchase Commitment
2026 (remainder of the year) | $ | 154,621 |
2027 | 414,673 |
2028 | 494,859 |
2029 | 488,529 |
2030 | 494,959 |
Thereafter | 498,089 |
Total | $ | 2,545,730 |
Legal Matters From time-to-time, the Company may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. Some of these claims, lawsuits and other proceedings may involve highly complex issues that are subject to substantial uncertainties, and could result in damages, fines, penalties, non-monetary sanctions or relief. In re Lucid Group, Inc. Securities Litigation On April 1, 2022, and May 31, 2022, two alleged shareholders filed putative class actions under the federal securities laws in the United States District Court for the Northern District of California against the Company and certain officers of the Company relating to alleged statements, updated projections and guidance provided from late 2021 to early 2022. The two matters were consolidated as In re Lucid Group, Inc. Securities Litigation. The complaint alleges that the Company and its former CEO made false or misleading statements about the Company’s 2022 production targets in violation of Sections 10(b) and 20(a) of the Exchange Act. Defendants deny these allegations and are vigorously defending the case. At this point in the matter, we are unable to predict the outcome or potential exposure. Nine purported shareholders have filed derivative cases in various courts putatively on behalf of the Company against certain of the Company’s current and former directors based on allegations similar to those in the In re Lucid Group, Inc. Securities Litigation action. These cases raise claims such as a breach of fiduciary duty, unjust enrichment, waste of corporate assets, and aiding and abetting a breach of fiduciary duty. On July 11, 2022, a derivative case raising such claims was filed in the Superior Court of California, Alameda County, and is currently stayed. Between September 2024 and December 2024, three other derivative lawsuits were filed in the Delaware Court of Chancery raising similar claims. Two were consolidated into a single action. On January 29, 2025, February 7, 2025 and August 6, 2025, three other derivative lawsuits were filed in the Northern District of California also raising similar claims. The court has granted the parties stipulation to consolidate and stay the cases. Between February 28, 2025, and March 7, 2025, two other derivative lawsuits raising similar claims were also filed in the United States District Court for the District of Delaware. They were consolidated into a single action and are currently stayed. Eke v. Lucid Group, Inc., et al. On May 29, 2026, a shareholder filed a putative class action alleging claims under Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 against the Company, the Company’s then Interim Chief Executive Officer Marc Winterhoff, and Chief Financial Officer Taoufiq Boussaid (Eke v. Lucid Group Inc. et al., U.S. District Court N.D. Cal., Case No. 3:26-cv-05128). The complaint alleges that Defendants made false or misleading statements about and/or failed to disclose, among other things, that a supplier quality issue had significantly disrupted deliveries of the Lucid Gravity. Defendants deny these allegations and plan to vigorously defend the case. At this point in the matter, we are unable to predict the outcome or potential exposure. On June 16, 2026, a shareholder filed a derivative action on behalf of the Company against certain current and former directors and officers alleging claims substantially similar to those in Eke v. Lucid Group, Inc. et al. The case alleges claims such as a breach of fiduciary duty, unjust enrichment, and waste of corporate assets. Defendants deny these allegations and plan to vigorously defend the case. At this point in the matter, we are unable to predict the outcome or potential exposure. The Company is evaluating certain loss contingencies arising from supplier contract claims that could result in additional obligations of the Company. As of June 30, 2026, the Company had recorded an immaterial accrual for losses deemed probable and reasonably estimable. While the ultimate outcome of these matters remains uncertain, it is reasonably possible that the Company may incur losses in excess of the amounts accrued. The Company will continue to assess these contingencies as additional information becomes available and will update its estimates, as appropriate, in future reporting periods. While we have registered and applied for trademarks in an effort to protect our brand and goodwill with customers, competitors or other third parties have previously opposed, currently oppose, and may continue to oppose our trademark applications or otherwise challenge our use of the trademarks and other brand names in which we have invested. Such oppositions and challenges can be expensive and may adversely affect our ability to maintain the goodwill gained in connection with a particular trademark. In addition, we may lose our trademark or be unable to submit specimens of use by the applicable deadline to perfect such trademark rights. At this time, the Company does not consider any such claims, lawsuits or proceedings that are currently pending, individually or in the aggregate, including the matters referenced above, to be material to the Company’s business or likely to result in a material adverse effect on its future operating results, financial condition or cash flows should such proceedings be resolved unfavorably. Indemnification In the ordinary course of business, the Company may provide indemnification of varying scope and terms to customers, vendors, investors, directors, officers, and certain key employees with respect to certain matters, including, but not limited to, losses arising out of our breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never paid a material claim, nor has it been sued in connection with these indemnification arrangements. The Company has indemnification obligations with respect to letters of credit and surety bond primarily used as security against facility leases, utilities infrastructure and other agreements that require securitization. The indemnification obligations were $174.5 million and $130.9 million as of June 30, 2026 and December 31, 2025, respectively, for which no liabilities are recorded in the condensed consolidated balance sheets.

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