Lucid Group on Wednesday announced the opening of its second manufacturing stage at its assembly plant in Casa Grande, Arizona—setting the stage for ramping up production of the Gravity electric SUV later this year. 

While the second manufacturing stage will help allow higher production levels of its Gravity, as well as the Air electric sedan, it also teased what that second stage will help enable in the future: a somewhat smaller electric SUV, likely about the size of the Tesla Model Y, called “Project Midsize,” was shown in a presentation at the factory event.

Lucid’s shareholder deck and CEO Peter Rawlinson have alluded to the creation of lower-priced, midsize models. 

Within a few years it might go hand-in-hand with Lucid’s expansion. According to Lucid, the 3 million-square-foot buildout effectively quadruples the size of the manufacturing facility. It will bring a general assembly line, expanded body and paint shops, a logistics center, cost-cutting vertically integrated stamping, and more, as well as an expanded powertrain facility. 

Lucid Gravity

Last June, Lucid inked a supply agreement with Aston Martin that will pair its “cutting edge powertrain technology” with Mercedes’ electronic architecture in a future family of electrified models from the storied British brand. 

Lucid thus far has been a niche producer and hasn’t ramped up production quite as rapidly as it originally suggested. Earlier this month it confirmed that it had delivered 1,734 vehicles in Q4 of 2023, with a production of 2,391 vehicles for the quarter. That amounts to a total of 6,001 deliveries and 8,428 vehicles produced in 2023.

2023 Lucid Air Touring

2023 Lucid Air Touring

The slow takeoff appears potentially related to demand for its Air sedan, and in recent months Lucid has lowered the price. 

On the same day as the Lucid expansion announcement, Tesla touted the Model Y as the bestselling vehicle in the world—sedan or SUV, electric or gasoline. The size and price of the Model Y, well-suited to markets around the world, have arguably been as much of a key to the Y’s success as the Tesla badge. 

If Lucid can deliver its Tesla-beating efficiency and range to a Model Y–sized vehicle, it would almost certainly be a compelling if not game-changing vehicle. But with no timeline provided as of yet, stay tuned.