Lucid's Midsize Strategy: Cost Engineering with Cory Steuben

TL;DR

Lucid's Director of Cost Engineering explains how the midsize platform achieved should-cost targets through wiring simplification, Atlas drive unit redesign, and global supply chain leverage.

Key Points

• 1.Lucid's efficiency advantage enables significant battery cost savings. The midsize platform requires only 69 kWh to travel ~300 miles, meaning fewer battery cells purchased and more budget redirected to customer features or investor returns.
• 2.A $59 cost target for one subsystem was met within two cents. Initially dismissed as unreachable — with internal estimates at $120–$150 — the target was validated through detailed cost walks and competitive supplier bidding as Lucid scaled toward higher volumes.
• 3.Cory Steuben's cost engineering team of 20+ updates should-cost models weekly. Over two-thirds are cost engineers or estimators, and every sourcing package requires a formal CE-numbered cost analysis before supplier selection proceeds.
• 4.Lucid's global manufacturing footprint in Arizona and Saudi Arabia provides tariff and localization advantages. Tier 1 and Tier 2 suppliers including Benteler, Jarvis, and Shenyang are localizing in KSA, and China-to-KSA tariff dynamics differ favorably from China-to-USA, enabling competitive global bids.
• 5.The midsize wire harness cost was targeted at roughly 40% of Air and Gravity harness costs — and achieved. Wire count is approximately half that of a comparable Chinese competitor, achieved by eliminating inline connectors, using unshielded twisted pairs where possible, and routing door/seat harnesses directly into aggregators.
• 6.The Atlas drive unit achieved 30% fewer parts, 23% less weight, and ~37% lower cost versus Zeus. Key changes include reducing the center differential from four gears to two, integrating the oil pump control into existing PCBA, and switching to a top-down assembly process for planetary gear sets.
• 7.Tight packaging discipline — including a cab-forward design and minimized sill box sections — maximizes interior space and frunk volume. The rear drive unit's low stack height allows luggage to sit just millimeters above it; a taller competitor unit would visibly reduce cargo utility.
• 8.An informal early-stage Product and Process Integration (PPI) process challenged every assembly assumption before virtual build gates. Steuben ran whiteboard sessions requiring teams to benchmark clip counts, wire retention spacing, and material choices against competitors, with non-standard materials requiring explicit sign-off.
• 9.Lucid's path to profitability hinges on the midsize platform reaching high volume. Investor Day highlighted accelerating profitability as the near-term goal, with the Cosmos and Earth nameplates positioned as the company's high-volume, high-value vehicles designed to drive the necessary scale.