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Lucid (LCID) to Recall 5K Air Sedan Due to Software Defect
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Lucid Group, Inc. (LCID - Free Report) is recalling approximately 5,251 of its 2022-2023 Air luxury sedans due to a software issue that could lead to a power loss, per the U.S. National Highway Traffic Safety Administration. The problem involves the High Voltage Interlock (HVIL) safety mechanism, which could be mistakenly activated when the vehicle is in Drive or Reverse, causing a power outage. However, the brakes, steering and displays would remain functional.
Lucid has addressed the issue with an over-the-air update that started on Jun 24, 2024. This update adjusts the HVIL to prevent the removal of HV while the vehicle is in Drive or Reverse. Instead, drivers will receive a Drive System Warning advising them to contact customer care. In Park or Neutral, a Drive System Fault will appear.
Additionally, LCID is recalling 2022-2024 Air sedans due to a faulty coolant heater that may fail to defrost the windshield, affecting 7,506 vehicles. Despite a low failure rate of 1.2%, Lucid has issued a software update to alert drivers if the High Voltage Coolant Heater (HVCH) malfunctions. Affected vehicles will receive a new HVCH at no cost. Cars manufactured from February 2023 onward are not impacted, as they have an upgraded coolant heater, and only 255 vehicles have yet to receive the new software.
Lucid is not alone in facing software recalls. Tesla also recalled more than 125,000 cars in May due to faulty seat belt warnings. Despite this, LCID's power loss issue remains a significant safety concern.
The recall coincides with the company's strong second-quarter delivery report and operational restructuring. The automaker delivered 2,394 vehicles during second-quarter 2024. In May, Lucid cautioned that it has sufficient liquidity to last only the next 12 months.
The consensus estimate for SZKMY’s 2025 earnings suggests year-over-year growth of 2.09%. EPS estimates for 2025 and 2026 have improved 38 cents and 15 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for RNLSY’s 2024 sales and earnings suggests year-over-year growth of 20.78% and 62.43%, respectively. EPS estimates for 2024 and 2025 have improved 6 cents and 14 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. EPS estimates for 2024 have moved up 3 cents in the past 60 days. The same for 2025 has moved up 20 cents in the past 30 days.
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Lucid (LCID) to Recall 5K Air Sedan Due to Software Defect
Lucid Group, Inc. (LCID - Free Report) is recalling approximately 5,251 of its 2022-2023 Air luxury sedans due to a software issue that could lead to a power loss, per the U.S. National Highway Traffic Safety Administration. The problem involves the High Voltage Interlock (HVIL) safety mechanism, which could be mistakenly activated when the vehicle is in Drive or Reverse, causing a power outage. However, the brakes, steering and displays would remain functional.
Lucid has addressed the issue with an over-the-air update that started on Jun 24, 2024. This update adjusts the HVIL to prevent the removal of HV while the vehicle is in Drive or Reverse. Instead, drivers will receive a Drive System Warning advising them to contact customer care. In Park or Neutral, a Drive System Fault will appear.
Additionally, LCID is recalling 2022-2024 Air sedans due to a faulty coolant heater that may fail to defrost the windshield, affecting 7,506 vehicles. Despite a low failure rate of 1.2%, Lucid has issued a software update to alert drivers if the High Voltage Coolant Heater (HVCH) malfunctions. Affected vehicles will receive a new HVCH at no cost. Cars manufactured from February 2023 onward are not impacted, as they have an upgraded coolant heater, and only 255 vehicles have yet to receive the new software.
Lucid is not alone in facing software recalls. Tesla also recalled more than 125,000 cars in May due to faulty seat belt warnings. Despite this, LCID's power loss issue remains a significant safety concern.
The recall coincides with the company's strong second-quarter delivery report and operational restructuring. The automaker delivered 2,394 vehicles during second-quarter 2024. In May, Lucid cautioned that it has sufficient liquidity to last only the next 12 months.
Zacks Rank & Key Picks
LCID currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Suzuki Motor Corporation (SZKMY - Free Report) , Renault SA (RNLSY - Free Report) and American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for SZKMY’s 2025 earnings suggests year-over-year growth of 2.09%. EPS estimates for 2025 and 2026 have improved 38 cents and 15 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for RNLSY’s 2024 sales and earnings suggests year-over-year growth of 20.78% and 62.43%, respectively. EPS estimates for 2024 and 2025 have improved 6 cents and 14 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. EPS estimates for 2024 have moved up 3 cents in the past 60 days. The same for 2025 has moved up 20 cents in the past 30 days.