Automakers are diving headfirst into the electric vehicle future, but they’re facing a hiccup with a global slowdown, and the U.S. EV market is feeling the squeeze. Following Rivian’s stumble, Lucid Motors unveiled its 2023 financial results, which fell short of expectations, with only 6,001 deliveries in the past year and a net loss of $2.83 billion, up from $1.3 billion in 2022.
Despite these setbacks, Lucid executives remain optimistic about the future, pinning their hopes on the Gravity SUV and the upcoming midsize model to spur company growth.
The EV startup’s 6,001 deliveries represent a 37 percent increase compared to 2022. Lucid produced 8,428 vehicles in 2023 and expects this number to marginally grow in 2024 to around 9,000 units. Revenue was $595 million in 2023 compared to $608 million in 2022. Nonetheless, Lucid ended the year with approximately $4.78 billion in total liquidity.
More: Lucid Teases Smaller SUV To Fight Tesla Model Y And 3
As reported by Automotive News, Peter Rawlinson, Lucid CEO, said that the “macroeconomic and higher interest-rate environment” has hurt Lucid sales. He also admitted there were a few issues with the production of the entry-level Lucid Air Pure model which have now been resolved. Despite the recent fluctuations, Rawlinson has confidence in the future growth of the EV market.
Earlier this month, Lucid reduced the prices of the Air by up to $8,000 in response to the cut-price war among EV-makers. As a result, the entry-level Lucid Air Pure now starts from $71,400. The Air sedan is the only model offered by Lucid, at least until the Gravity SUV arrives in late 2024. As for the yet-unnamed “high-volume” midsize EV set to compete with the Tesla Model 3/Y, this is scheduled to enter production in late 2026.
Their Saudi sugar daddy is the only thing keeping them alive
— Elon Musk (@elonmusk) February 22, 2024
Lucid’s underwhelming results didn’t escape the attention of Elon Musk, CEO of rival Tesla, who posted on X (formerly known as Twitter): “Their Saudi sugar daddy is the only thing keeping them alive.”
Musk is alluding to Saudi Arabia’s Public Investment Fund, which holds up to 60 percent of Lucid shares. The Middle Eastern government made a $10 billion investment and committed to purchasing 100,000 EVs from Lucid over the next decade. Last year, Lucid opened a production facility in Saudi Arabia to assemble the Lucid Air using pre-assembled kits imported from the US.
Following the announcements, Lucid’s shares fell 8.4 percent to $3.39 during premarket trading on Thursday. Overall, the stock has lost more than 90 percent of its value compared to its peak rating in 2021.
