Lucid Motors has announced its plan to manufacture only 9,000 electric vehicles in 2024, a stark contrast to the 90,000 EVs it had initially projected. This decision comes as the company grapples with challenges in meeting the demand for its high-end sedans. The revelation sheds light on the significant disparity between the company’s current production targets and its ambitious forecasts from three years ago when it went public.
Key Takeaway
Lucid Motors has scaled down its 2024 EV production target to 9,000 vehicles, a fraction of its initial projection of 90,000 units. The company faces challenges in meeting demand and has incurred substantial financial losses, prompting strategic initiatives and collaborations to bolster its future prospects.
Struggles with Demand and Financial Losses
The substantial gap between the revised production figures and the earlier optimistic projections underscores the latitude that companies like Lucid enjoyed in promoting reverse mergers to gain public listing. However, it also underscores the harsh reality that Lucid is currently confronting – the struggle to secure buyers and the financial setbacks incurred with each EV produced.
Financial Results and Pricing Strategy
Lucid disclosed its 2024 production targets alongside its financial results for the previous year, revealing a staggering $2.8 billion loss in 2023. The announcement of the modest production projection follows the recent price reduction of its Air sedan by $8,000.
CEO’s Efforts and Future Prospects
CEO Peter Rawlinson has emphasized the company’s focus on enhancing sales and marketing endeavors, while also pinning hopes on the forthcoming Gravity SUV to potentially revitalize its prospects. The Gravity was a pivotal factor in Lucid’s initial forecast of manufacturing and delivering 90,000 vehicles by 2024. However, the company encountered various challenges in the early stages of Air production and had to postpone the launch of the Gravity to November 2023.
Future Initiatives and Collaborations
Despite the setbacks, Lucid has introduced a rear-wheel drive version of its base model Air Pure, now priced under $70,000 after the recent reductions. Additionally, the company has ventured into technology collaborations, including selling its EV technology to Aston Martin and exploring similar agreements with other entities within and outside the automotive sector. Furthermore, Saudi Arabia, the majority owner of Lucid Motors, has committed to procuring up to 100,000 EVs from the company over the next decade, with initial shipments to the Kingdom already underway.
