Lucid Group, Inc..
LCID.US | Manufacture of motor vehicles
Lucid Group, Inc. is an American electric vehicle manufacturer. The company designs, engineers, develops, manufactures, and sells electric vehicles, electric vehicle powertrains, and battery systems. Its primary product is the Lucid Air, a luxury electric sedan. Lucid also develops energy storage sy...Show More
Better Health for All
0
Insufficient evidence to determine a value score for Lucid Group, Inc. regarding Better Health for All. No articles or relevant information found. A neutral score of 0 is assigned.
Materiality Analysis: Company Summary (75-100 words): Lucid Group, Inc. designs, engineers, manufactures, and sells electric vehicles (EVs), EV powertrains, and battery systems. It operates primarily in the automotive industry, selling directly to consumers through retail and online channels, including financing options. Lucid's core business revolves around producing and delivering luxury electric vehicles, with a focus on proprietary software and technology integration. The company is headquartered in California and is a subsidiary of Ayar Third Investment Company.
Peer Comparison (50-75 words): Compared to other EV manufacturers like Tesla or Rivian, Lucid's direct impact on "Better Health for All" is relatively indirect. While EVs contribute to cleaner air, addressing health externalities, Lucid's focus on the luxury market limits its direct contribution to healthcare access or affordability for vulnerable populations compared to companies with broader market reach.
Materiality Assessment (1-2 clear sentences): Lucid's business model has a neutral relationship with the "Better Health for All" value, with a low level of materiality, as its primary activity is manufacturing and selling luxury electric vehicles, which has an indirect positive impact on public health through reduced emissions but does not directly address healthcare access or affordability.
Detailed Rationale (150-200 words): Lucid's contribution to "Better Health for All" is primarily through the indirect positive impact of electric vehicles on air quality and public health by reducing emissions compared to traditional combustion engine vehicles. However, this impact is diluted by the company's focus on the luxury segment, which limits accessibility to a smaller, wealthier demographic. The company does not directly engage in activities related to healthcare provision, pharmaceutical development, or health equity programs. While the transition to EVs is generally beneficial for public health, Lucid's specific business model does not prioritize or directly address healthcare access, affordability, or other key components of the "Better Health for All" value. Therefore, the materiality is low, as the core business operations are not fundamentally linked to improving healthcare outcomes for broad populations.
Value Interaction Notes (if applicable, 25-50 words): Lucid's focus on high-performance vehicles may create a tension between "Planet-Friendly Business" (due to resource consumption in manufacturing) and "Better Health for All," as the health benefits of EVs are somewhat offset by the environmental impact of producing luxury goods.
Scoring Boundary Flags (if applicable, 25-50 words): Scores above 3 are illogical. Lucid's business model does not directly address healthcare access or affordability, making high scores misleading. A score of 1 or 2 is more appropriate, reflecting the indirect positive impact through reduced emissions.
Fair Money & Economic Opportunity
0
No evidence available to assess Lucid Group, Inc. on Fair Money & Economic Opportunity.
Fair Pay & Worker Respect
-20
Lucid Group's commitment to fair pay and worker respect presents a mixed picture. Glassdoor reviews indicate concerns about "lower basic pay" compared to industry averages, with the compensation and benefits rating decreasing by 12% in the last 12 months
1
,
2
. The employee recommendation rate is 57%
3
. However, Salary.com reports a CEO to median pay ratio of 12:1 in 2024
4
, which is a positive indicator. There is a lack of data regarding living wage coverage, pay equity, safety incident rates, and labor violation incidents
5
,
6
,
7
. Given the conflicting signals and data gaps, a conservative score is warranted. The negative score reflects the concerns raised in employee reviews and the absence of comprehensive data across all key metrics.
Fair Trade & Ethical Sourcing
0
No specific quantitative data is provided across the articles for any of the fair trade and ethical sourcing KPIs. While Lucid Motors has a Responsible Sourcing Policy and participates in the UN Global Compact, the available information does not include metrics such as fair-trade certified spend, audit frequencies, forced or child labor incidents, supply chain traceability coverage, remediation speeds, ethical clause coverage in contracts, share of high-risk materials, or supplier diversity spend.
1
Honest & Fair Business
-40
Lucid Group has a whistleblower policy with a 24/7 anonymous hotline and a webpage for submitting reports, and it includes a non-retaliation policy.
1
However, there is no explicit evidence of independent investigation processes for these reports. The company's former entity, Churchill, restated its financial statements for periods in 2020 due to an SEC Warrant Accounting Statement.
2
Lucid's Board of Directors is majority independent under SEC and Nasdaq rules, and it has an independent chairman.
3
The company has an anti-corruption policy that explicitly prohibits bribery and kickbacks,
4
and it joined the UN Global Compact in April 2023, which challenges companies to align with anti-corruption principles.
5
However, the policy's training frequency and effectiveness metrics are not specified. Lucid's Arizona manufacturing facility (AMP-1) and AMP-2 in Saudi Arabia maintained or achieved ISO 9001, ISO 14001, and ISO 45001 certifications in 2023 and 2024, which are third-party validations of management systems.
6
The company also uses third-party auditors for cybersecurity risk management and consultants for cybersecurity certifications,
7
and third parties for materiality, human rights, and climate risk assessments.
8
However, the percentage of overall ethical claims verified by third parties is not specified.
Kind to Animals
0
As an electric vehicle manufacturer, Lucid Group, Inc. does not engage in animal agriculture operations or sourcing of animal products from agriculture, making this KPI not applicable. While vegan interior options are mentioned, no specific data is provided regarding the percentage of animal-derived materials replaced or any cruelty-free certifications for products.
1
No War, No Weapons
0
No evidence available to assess Lucid Group, Inc. on No War, No Weapons.
Planet-Friendly Business
-60
Lucid Group completed its first life cycle assessment (LCA) on the Lucid Air Grand Touring in 2023.
1
The company has established a Responsible Sourcing Policy and Supplier Code of Conduct, requesting suppliers to complete the Responsible Minerals Initiative’s (RMI) Conflict Minerals Reporting Template (CMRT).
2
As of March 7, 2024, 91% of in-scope suppliers responded to the RCOI survey, and 72% of disclosed smelters and refiners are considered conformant.
3
Lucid's Arizona factory achieved ISO 14001 certification in 2023, and there is no evidence of major environmental compliance violations.
4
Respect for Cultures & Communities
0
No evidence available to assess Lucid Group, Inc. on Respect for Cultures & Communities.
Safe & Smart Tech
10
Lucid demonstrates some commitment to Safe & Smart Tech. They use encryption for data in transit and at rest, including HTTPS and AES-256.
1
They support Single Sign-On (SSO) and offer features like two-factor authentication.
2
Lucid has achieved SOC 2 Type II certification, demonstrating a baseline level of security.
3
,
4
They also use AWS, a leading provider of secure computing infrastructure.
5
,
6
However, there is a lack of quantitative data on key metrics such as cybersecurity investment, security training effectiveness, and bug bounty program performance.
7
While they have a bug bounty program hosted by HackerOne, its effectiveness is not clear.
8
The 10-K filing states they are not aware of any material cybersecurity incidents, but acknowledges limitations in monitoring third-party vendor security.
9
Zero Waste & Sustainable Products
-50
Lucid Motors states it accounts for circularity early in its design process and plans for end-of-life pathways for vehicles, indicating some awareness but limited implementation.
1
The company has several waste reduction initiatives, including using fewer parts to build products, actively tracking waste, and focusing on reducing packaging waste.
2
Lucid aims to minimize hazardous air pollutants in its paint booth process.
3
There is no mention of waste disposal violations. The company emphasizes efficiency to minimize environmental impact, which includes using fewer materials and designing products to use fewer batteries.
4
Lucid's Arizona factory achieved ISO 14001 certification less than a year after production started, and the company expects suppliers to comply with ISO 9001 or IATF 16949 certifications, working with them to reduce waste from rework or scrapped parts.
5