Lucid Motors’ Big Win: How Rentals and Leases Drove a Record-Breaking Quarter
Lucid Motors just had their best quarter ever — but not in the way you might expect. While many automakers chase success through car sales only, Lucid found a different route to the top. By shifting gears and turning to rentals and leases, the electric vehicle (EV) company managed to hit a new record in revenue.
So, what’s really driving Lucid’s big win? Let’s break it down simply.
Why Lucid’s Numbers Just Jumped
In their latest earnings report, Lucid Motors revealed that they pulled in $173 million in revenue during the first quarter of 2025. That’s a serious jump from the $149 million in the previous quarter — a gain of about 16%!
But here’s something interesting: Lucid didn’t achieve this by selling more cars to customers. In fact, they sold 2,394 luxury EVs—only slightly more than the 1,967 units sold in Q4 of 2024. So, where did the money come from?
The secret sauce? Rentals and leases.
Rental Programs: A Clever Play
Lucid realized that many people weren’t quite ready to buy a Lucid Air — its main luxury electric sedan. Maybe they wanted to try it first, or maybe the $70,000+ price tag was a bit too steep upfront.
So the company leaned into its rental and lease programs. These allow customers to drive a Lucid car for a shorter period — like trying clothes on before buying. And the results speak for themselves. A big chunk of Q1’s revenue came from Lucid’s growing business of:
- Rental partnerships — with ride-sharing companies
- Fleet leases — to corporate clients
- Internal leases — cars leased directly by Lucid or through Lucid Financial Services
This strategy helped even more people get behind the wheel of a Lucid, bringing in steady income without needing to close a sale. Smart, right?
How Rentals Are Changing the EV Game
Think about it: Not everyone wants to commit to buying an EV. Many folks are curious, but unsure. Range anxiety is still real. Charging infrastructure varies by area. And top-tier electric cars aren’t cheap.
So what’s an auto startup to do? Lucid tapped into these concerns by offering low-effort, low-risk ways to try out their vehicles.
This is especially important in the luxury EV space. Lucid competes with the likes of Tesla’s Model S and BMW’s i7. That’s some stiff competition. By letting people lease or rent short-term first, Lucid is making it easier for new customers to fall in love with the brand — and maybe, eventually, commit long-term.
It’s a lot like going from dating to marriage — would you get married without a few dates first? Probably not. And Lucid gets that.
Adding a Personal Touch: My 3-Day Lucid Ride
Last fall, I gave Lucid’s rental service a spin (literally). I used the Lucid Air for a weekend getaway, and let me tell you — that thing glides like butter. The interior? Like stepping into a spaceship with leather seats. And the range anxiety? Gone, thanks to a 400+ mile capacity.
I didn’t walk away buying one — but I can totally see how someone could. And now, every time I hear “Lucid,” I pay closer attention. Their bet on rentals worked — at least on me.
Lowering the Burn Rate: Saving Money is Earning Money
Another highlight from Lucid’s earnings call was its lower cash burn. The company reported spending 23% less cash this quarter, burning through $600 million in Q1 compared to $780 million three months earlier.
In the startup world, managing cash is just as important as bringing it in — especially when you’re trying to stay competitive and scale. Lucid’s improved operating efficiency signals to investors that the company is getting smarter with its money.
The Bigger Picture: What This Means for the EV Industry
Lucid’s success this quarter sends a strong message: EV companies don’t have to rely only on car sales to grow. Rentals, leases, and creative financing options can drum up steady revenue — while also boosting brand visibility and trust.
This shift could inspire other electric carmakers to get creative with how they put their cars on the road. In fact, Tesla, Rivian, and others are already experimenting with similar strategies. From subscription services to shared EV fleets, the transportation business is quickly evolving beyond the standard dealership model.
Rental Revenue by the Numbers
Here’s a fun stat: While Lucid didn’t break out the exact dollar figure for rentals and leases, they confirmed that these programs now make up the majority of their total deliveries. That’s a big change from just a year ago.
Any company that can turn a partial customer into a paying user is doing something right. And Lucid’s method might be the prototype for how new car brands survive in a tough EV market.
What’s Next for Lucid?
Looking forward, CEO Peter Rawlinson hinted at more focus on fleet services and ongoing customer touchpoints. We also expect to see further development of Lucid’s Gravity SUV, set to debut soon. If they handle that launch like they handled rentals, things could get exciting.
But let’s not forget — challenges remain:
- Global EV competition is heating up
- Profitability still lies ahead
- Charging access remains a concern for many would-be EV drivers
Still, Lucid’s latest quarter proves they can adapt fast. And in a shifting industry like EVs, quick adaptability might be more valuable than anything else.
Final Thoughts: Why This Matters to You
If you’re thinking about making the switch to an electric car, Lucid’s strategy works in your favor. With more rentals, short-term leases, and available fleet options, you have more chances to test and explore before you commit.
And from a business perspective, this isn’t just a win for Lucid — it’s a sign of where the auto industry is headed. More flexible ownership. More customer-focused experiences. Less pressure to “buy or nothing.”
Next time you’re looking around a car lot, don’t be surprised if more automakers take a Lucid-style approach: try before you buy, ease into ownership, and enjoy the ride.
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