Lucid recalls over 4,000 Gravity SUVs on seat belt welding defect

Lucid Motors' recall of over 4,000 Gravity SUVs for a critical safety defect deals a blow to its reputation for quality, creating an opening for rivals in the competitive luxury EV market.

In a filing with the National Highway Traffic Safety Administration, the company confirmed the issue stems from improperly welded seat belts.

The recall affects more than 4,000 of the recently launched Gravity SUV, a key product for the company's growth. Lucid had appeared to be moving past earlier production struggles that plagued the launch of its Air sedan.

For Lucid (LCID), the recall introduces significant potential costs and could erode consumer confidence at a critical time. The news puts pressure on the stock as the company struggles to scale production and compete with established luxury EV players like Tesla's Model X and Rivian's R1S.

The recall announced on April 1, 2026, is a significant setback for Lucid, which has positioned itself as a premium electric vehicle manufacturer with a focus on high-end technology and design. The Gravity SUV, its second model, is crucial for expanding its market share beyond the niche of the high-end Air sedan. The company has not yet disclosed the estimated cost of the recall.

This event re-ignites concerns about Lucid's ability to manage its manufacturing and supply chain, issues that have historically hampered its production targets. While the company seemed to have made progress, this safety-critical recall suggests quality control problems may persist. This could damage its brand image, a key asset when competing against the manufacturing scale of Tesla and the established luxury credentials of brands like Mercedes-Benz and BMW, which are rapidly expanding their own EV lineups.

For investors, the recall presents a tangible risk. Lucid's stock is likely to face downward pressure from the direct costs of the recall and the potential for slower sales if consumer trust is damaged. The company, which is not yet profitable, can ill-afford costly operational missteps as it aims for mass-market adoption. The market will be watching closely to see how quickly Lucid can address the issue and whether it impacts future delivery numbers.

This article is for informational purposes only and does not constitute investment advice.