Lucid Motors, the electric vehicle company that is working to challenge Tesla, has announced it is laying off roughly 400 employees.

Lucid has been expanding its lineup, with a midsize model expected to go into production in 2026 and an estimated price of $48,000 to $50,000. The company is also working on a an SUV, the Lucid Gravity, that will be a traditional seven-seat, three-row SUV—only with an electric engine rather than a combustion one.

In a filing with the SEC, Lucid says it is laying off roughly 6% of its workforce, a restructuring move designed to “to optimize the Company’s operating expenses.”

On May 24, 2024, Lucid Group, Inc. (the “Company”) announced a restructuring plan (the “Plan”) intended to optimize the Company’s operating expenses in response to evolving business needs and productivity improvements through a reduction of the Company’s current employee workforce by approximately 400 employees, or approximately 6%. The Company expects to substantially complete the Plan by the end of the third quarter of 2024, subject to local law and consultation requirements.

Based on the filing, it doesn’t appear that the layoffs are because of financial issues, but appear to be standard restructuring and optimizations.