The US electric car manufacturer Lucid Motors has reported higher losses again in the first quarter, and sales also fell compared to the fourth quarter of the previous year. In addition, Lucid is lowering its production target for this year.
As shown in the quarterly figures now presented, Lucid Motors posted revenues of $149.4 million (€135.8 million) from January to March, compared to $257.7 million in the final quarter of 2022. The company’s net loss increased to $779.5 million (€708.8 million) in the first quarter of 2023, compared to $472.6 million in Q4/2022.
The company does not give reasons for the decline in revenue in its announcement of the quarterly figures. The news agency Reuters attributes the result to the price war for electric cars triggered by Tesla, rising interest rates and fears of recession. While Tesla had also lowered the prices of its top-of-the-range models, in some cases significantly, Lucid has not yet made the Air any cheaper – prices still start at 87,400 dollars in the USA.
According to the quarterly report, Lucid still has total liquidity of around 4.1 billion US dollars, just over 3.7 billion euros. This is enough to fund the company at least into the second quarter of 2024, it said. Lucid also needs to cut costs and announced major staff layoffs in the USA at the end of March, letting around 18 per cent of its workforce go.
Production and delivery figures for Q1 were already known: Lucid Motors produced 2,314 electric cars and delivered 1,406 in the first quarter of this year, as reported. What is new, however, is that the company has now adjusted its annual target downwards slightly: For the full year 2023, Lucid lowered its production forecast from previously 10,000 to 14,000 to “more than 10,000” vehicles. In other words, with a production result of around 2,300 vehicles in the first quarter and an annual target more in the region of 10,000 vehicles rather than 14,000, Lucid does not seem to expect too big a jump in production.
But that could be partly due not to the company itself but to the environment, as Lucid CEO and CTO Peter Rawlinson suggests. “We are on track to produce over 10,000 vehicles in 2023, with company-wide initiatives ongoing that will enable Lucid to pivot to higher volumes as market conditions allow,” Rawlinson said. He did not elaborate on what impact the last sub-sentence will have in the statement. Speaking to analysts, Rawlinson indicated that the market is currently facing “a challenge to the entire market right now because of macroeconomics and because of interest rates”.
The bigger leap is likely to come in 2024, as the electric luxury sedan ‘Air’ remains the manufacturer’s only model this year. “We will unveil our Gravity SUV later this year ahead of its launch in 2024 and we cannot wait for everyone to experience it,” Rawlinson continues. “The Lucid Air redefined the luxury sedan category and we believe the continuing advancements of our in-house technology position our Gravity SUV to do the same in the SUV category – game-changing range, driving experience, charging speed, voluminous interior space, and an unrivaled combination of luxury and performance.”
reuters.com, lucidmotors.com
Keyword: Lucid lowers production targets for 2023