Lucid Motors is extending payment terms to 60 days for suppliers currently on shorter schedules, according to an email mistakenly sent to customers on Wednesday that was intended only for its supply chain partners.
The California-based EV maker notified affected suppliers that it is implementing End of Month, Net 60 (EOM + 60) payment terms “in order to maintain industry best practices and ensure consistency across our supplier base,” according to the email seen by EV.
Under the new terms, suppliers would receive payment approximately 60 to 90 days after delivery, depending on when invoices are issued during the month.
The notification was addressed to suppliers whose current payment terms “fall below Net 60.”
Industry Context
Extended payment terms are common in the automotive industry, where large manufacturers often negotiate 60- to 90-day payment schedules with suppliers to manage working capital.
However, the practice can strain smaller suppliers who must finance inventory and production costs while waiting for payment.
The issue has drawn regulatory scrutiny in China, where aggressive payment stretching by automakers amid an intense price war prompted government intervention earlier this year.
In March, Chinese authorities issued new rules to protect small and medium enterprises, stipulating that bills should be paid within 60 days and that large firms should not force smaller businesses to accept promissory notes or use such methods to delay payments.
The Ministry of Industry and Information Technology (MIIT) addressed supply chain financing concerns with heads of major electric vehicle manufacturers over worries the price war was becoming unsustainable.
In June, Chinese automakers including BYD, Geely Holding Group, Dongfeng and GAC pledged to standardize supplier payments to 60 days.
US-listed Chinese EV makers Nio, XPeng and Li Auto made similar commitments earlier this year.
Production Challenges
Lucid‘s payment terms adjustment follows a difficult quarter marked by production setbacks.
The company built 3,891 vehicles in the third quarter at its Casa Grande, Arizona plant, along with more than 1,000 partially assembled units shipped to its Saudi Arabia facility for final assembly.
Total production for the first nine months of 2025 reached 9,966 completed vehicles, excluding units in transit for final assembly.
To meet its revised 18,000-unit target, Lucid must build 8,034 vehicles in the fourth quarter, more than double its third-quarter output.
The company cited uncertain supplies of rare earth materials and a fire at an aluminum supplier two months ago as factors affecting production.
Interim Chief Executive Officer Marc Winterhoff said in September the company was internally targeting 20,000 units for the year.
Lucid started 2025 aiming to produce approximately 20,000 vehicles before reducing the target to a range of 18,000 to 20,000 units in early August.
Lucid’s Email
Below is the full email sent by the EV maker.
“Hello,
Lucid Motors has invited you to participate in a sourcing event: Lucid Motors | Updated Terms & Conditions on Levelpath. Please follow the directions below to access the event and respond.
Dear Supplier,
Lucid USA Inc. is implementing an update to our standard payment terms in order to maintain industry best practices and ensure consistency across our supplier base. As part of this transition, all suppliers will move to End of Month, Net 60 (EOM + 60) payment terms. You are receiving this notice because your current terms fall below Net 60.
If you have questions, please reach out directly to your Lucid Motors contact.”
