By Mari Hansen On a Tuesday, the news was delivered with the corporate assurance that typically causes a stock to rise. Finally, Lucid Motors had a new CEO. Another big check was being written by Saudi Arabia. Uber was strengthening its dedication. Nevertheless, the shares had dropped by about 5% by noon. As this develops, it seems as though investors are no longer prepared to pay for promises.
The person filling in is Silvio Napoli. He worked for almost thirty years at Schindler Group, a Swiss company that manufactures escalators and elevators, which are profitable and useful devices but not exactly Formula E. He has never managed an automobile business. In Newark, California, where Lucid’s engineers have spent years promoting the notion that they are creating something more akin to a Tesla rival than a luxury curiosity, that detail alone has sparked controversy. It feels intentional to select an industrial veteran over an automotive one. The board may now prioritize discipline over vision.
| Lucid Group, Inc. — Company & Leadership Snapshot | |
|---|---|
| Headquarters | Newark, California, United States |
| Founded | 2007 (originally as Atieva) |
| New Chief Executive Officer | Silvio Napoli (incoming) |
| Previous CEO | Peter Rawlinson (resigned February 2025) |
| Interim CEO | Marc Winterhoff (returning to COO role) |
| Napoli’s Background | Nearly 31 years at Schindler Group, elevator and escalator manufacturer |
| Other Board Roles | Director at Eaton Corporation |
| Majority Shareholder | Saudi Arabia’s Public Investment Fund |
| Latest PIF Investment | $550 million in additional shares |
| Uber’s Total Commitment | $500 million; minimum 35,000 vehicle order |
| Recent Workforce Action | 12% layoffs in February; further contractor reductions in Arizona |
| Stock Listing | NASDAQ: LCID |
| Napoli’s Base Salary | $1.5 million plus relocation, equity, and performance grants |
Napoli won’t even begin immediately. He is still in Switzerland awaiting a work permit for the United States. He will act as a “executive director” on the board until that paperwork is cleared, which is a peculiar situation for a new CEO. After keeping the seat warm, interim CEO Marc Winterhoff will return to his position as chief operating officer. The fact that Winterhoff reportedly desired the top position himself makes the awkward handoff even more bizarre.
The compensation package has a narrative of its own. a $1.5 million base pay. A moving allowance worth a million dollars. A performance-linked package that could reach the tens of millions if Napoli succeeds in making Lucid a financially viable automaker, along with stock grants that are close to $10 million up front. In order to “improve cost efficiency,” contractors outside the company’s Arizona factory were fired, according to a recent regulatory filing. It is difficult to ignore the difference between quiet layoffs and executive compensation.
And there’s Uber. The ride-hailing behemoth has now committed $500 million to purchase at least 35,000 Lucid cars, the majority of which were created especially for an autonomous robotaxi fleet run in tandem with Nuro. In San Francisco, a modified Gravity SUV is currently undergoing testing. It should have some significance because it’s a genuine collaboration rather than a press release fantasy. However, Uber’s agreement also lowers the minimum Gravity SUV order to 10,000, placing more pressure on Lucid’s yet-to-be-released midsize platform—the $50,000 car that must function.
Meanwhile, the Saudi Public Investment Fund continues to provide funding. This week, an additional $550 million. Eventually, the question becomes what the money is actually purchasing rather than whether it will continue to flow. Ten years ago, Tesla faced similar questions and responded with the Model 3. Lucid still hasn’t discovered the solution. The necessary audience was never reached by the Air sedan. The rollout of Gravity has been difficult, with problems with quality emerging while Winterhoff was in charge.
It’s difficult to ignore how much of Lucid’s story now depends on those who aren’t in their seats yet: a robotaxi service that is still in pilot, a CEO who is still trapped in Zurich, and a midsize car that is still in the planning stages. The announcements on Tuesday weren’t the main cause of Wall Street’s subdued response. It had to do with everything that remained unsolved beneath them.