Electric vehicle maker Lucid Group announced on Tuesday that CEO Peter Rawlinson has stepped down as the company sets an ambitious target to more than double its production in 2025 to 20,000 units.

Lucid’s chief operating officer, Marc Winterhoff, has been appointed as interim CEO while the company’s board initiates a search for a permanent replacement. Rawlinson, who has been with Lucid for 12 years and played a key role in taking the company public, will remain as a strategic technical advisor to the board chairman.

Winterhoff confirmed to CNBC that Rawlinson’s resignation was his own decision but did not provide further details. “It was Peter’s decision after 12 years of daily grind and bringing the company to where it is today … that it is time to step aside and pass the baton,” Winterhoff stated.

Rawlinson also addressed his departure in a LinkedIn post, describing it as “finally the right time” to leave after successfully launching Lucid’s second product, the Gravity SUV. However, he did not elaborate further on his reasons for stepping down.

His departure comes as a surprise to many. Rawlinson, who was also Lucid’s chief technology officer, has been a vocal advocate for the company’s long-term vision. He had previously emphasized his commitment to Lucid, stating during the company’s third-quarter earnings call in November that he had not sold any shares except for tax purposes and that he remained dedicated to driving long-term shareholder value.

Lucid’s leadership transition was announced alongside its fourth-quarter financial results, which showed a net loss of $636.9 million, or 22 cents per share, on revenue of $234.5 million. The company outperformed analyst expectations, which had projected a loss of 25 cents per share on revenue of $214 million. In comparison, Lucid reported a net loss of $653.8 million on revenue of $157.2 million in the same period the previous year.

The automaker’s production target for 2025 represents a significant increase from the 9,029 vehicles produced and 10,241 delivered in 2024. Winterhoff noted that production of the Gravity SUV would ramp up gradually throughout the year but did not specify what portion of the 20,000-unit goal the new model would account for.

Investors responded positively to the news, with Lucid’s stock rising about 8% in after-hours trading on Tuesday. However, the company’s shares have struggled in 2024, declining roughly 13% amid slower-than-expected EV adoption and policy uncertainty regarding federal support for electric vehicles under a potential Trump administration. Last year, Lucid’s stock fell by approximately 28%.

Lucid remains heavily backed by Saudi Arabia’s Public Investment Fund. The company made its debut in the EV market with the Air sedan in late 2021 and is now expanding its lineup with the Gravity SUV in hopes of revitalizing growth and increasing market competitiveness.

As Lucid moves forward under interim leadership, all eyes will be on how the company navigates its ambitious production goals and whether it can sustain investor confidence in the evolving EV landscape.