Key Takeaways

  • Electric vehicle maker Lucid Motors updated the compensation arrangement for its Chief Financial Officer Taoufiq Boussaid in a recent securities filing, adjusting his housing agreement and making tweaks related to his French citizenship status and retirement matters.
  • Boussaid became Lucid's CFO in February of last year. As part of the agreement for relocating to the company's headquarters in Newark, California, he received temporary housing assistance and an annual allowance of $100,000 to "cover the costs of his family's participation in the French retirement system, the engagement of necessary cross-border tax firms, and other support needed for a future return to France," according to his 2024 offer letter filed with the U.S. Securities and Exchange Commission.
  • Under the amended agreement, dated January 23, the housing assistance period was extended from 6 months to 12 months, and the allowance was increased to $200,000.

Deep Dive

According to Boussaid's 2024 offer letter, he received an annual salary of $575,000 and a signing bonus of $2 million when he became CFO, and was eligible for an annual target bonus equivalent to 90% of his base salary.

Among other compensation revisions, Lucid also approved "certain repatriation benefits" and up to two years of tax and immigration support benefits, totaling no more than $275,000 if Boussaid is terminated without cause, the filing shows.

"The Compensation Committee believes these adjustments are consistent with the intent at the time of approving Boussaid's offer letter, but were made given additional circumstances and information that arose during Mr. Boussaid's tenure with the company," Lucid stated in the filing.

The update comes as the automaker prepares to release its fourth-quarter earnings and seeks to establish a foothold in an industry segment that experienced rapid changes and turbulence last year. In 2025, EV and other automakers raced to mitigate the potential impacts of ongoing regulatory changes and tariffs and trade policies, such as those on steel and imported auto parts implemented by the Trump administration, as well as the elimination of the EV tax credit in September, as previously reported by CFO Dive.

Meanwhile, inflationary pressures and shifting consumer purchasing habits have led to shrinking sales and profit margins for many EV companies, including Tesla—which still accounts for roughly half of U.S. EV sales, according to recent data from Cox Automotive. Tesla's net income attributable to shareholders plunged 37% in its most recent quarter, during which CEO Elon Musk waged a fierce battle with the board over a $1 trillion compensation package, as previously reported by CFO Dive.

U.S. EV sales declined sharply in the fourth quarter, falling 46% compared to the third quarter of 2025 and down 36% year-over-year, according to a January 13 report from Cox Automotive. However, full-year 2025 EV sales were only 2% lower than the previous year, making it the second-best year for EV sales on record, the report showed.

These changes have prompted many EV makers, including Tesla, Rivian, and Lucid, to adjust vehicle pricing or launch more affordable new models, with Rivian planning to price its upcoming R2 model at around $45,000.

Meanwhile, Lucid is developing prototypes for three different midsize vehicles targeting a "different market" with starting prices around $50,000, making them more accessible to consumers—although they will still be premium products, Boussaid told attendees at UBS's Global Industrial and Transportation Conference in December. The Gravity Touring SUV, launched by the company in November, currently starts at $79,900, according to a company press release.

"Spent time in the prototype manufacturing area today watching the assembly of the first Lucid midsize vehicles," wrote Nick Twork, Lucid's head of communications, in a post on X about the upcoming models. "The same Lucid DNA as Air and Gravity—space, efficiency, power, and range—plus significantly improved manufacturability and cost structure. These cars will be a pleasant surprise. More information coming soon."

In the fourth quarter, Lucid produced 8,412 vehicles, up 116% from the previous quarter, according to a delivery and production update released January 5. Its deliveries increased 31% quarter-over-quarter.

Lucid is scheduled to hold its fourth-quarter earnings call on February 24.