Published - August 8th, 2023 @ 12:10 PM (GMT+2)

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Lucid Motors Faces Challenges Amid Price War

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On Saturday, Lucid cut prices of its Air electric sedans by as much as $12,400 as part of an offer. The price cuts came amid rising EV competition and a price war led by Tesla. Lucid's Q2 adjusted EPS loss of $0.40 also missed Wall Street expectations of a loss of $0.34. Lucid's price cuts could be a sign of slowing demand, as evidenced by the Q2 deliveries miss.

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Financial Performance and Liquidity Position

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Lucid ended Q2 with $6.25 billion in total liquidity, stemming from a $3 billion capital raise. The company's top-line revenue was $150.9 million, below consensus estimates of $176.63 million. The current cash balance should be enough to fund operations "into 2025" vs. until Q2 2024 earlier.

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Production and Delivery Targets

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Lucid produced 2,173 EVs during Q2 and delivered 1,404 EVs during the same period. The company is on track to produce more than 10,000 EVs in 2023. However, Lucid's CEO Peter Rawlinson recognizes that there is still work to do to grow the customer base.

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New Pricing and Upcoming Models

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The luxury Air EV now starts at $82,400, down from $87,400. Lucid plans to start producing a large electric SUV called Gravity in late 2024, with the unveiling set for November of this year.

Conclusion:

Lucid Motors' Q2 report reveals challenges in the competitive EV market. Despite missing earnings expectations and cutting prices, the company maintains a strong liquidity position and is on track with production targets. The upcoming Gravity SUV and strategic pricing may shape Lucid's future growth.

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