Lucid revises 2023 production amid softening demand for luxury EVs
Lucid has revised its 2023 production outlook amid softening demand for luxury electric vehicles, the company said Tuesday in its third-quarter earnings report.
The EV maker said it will produce 8,000 to 8,500 vehicles by the end of the year, down from previous guidance of more than 10,000, to “prudently align with deliveries.”
In the third quarter, Lucid delivered 1,457 of its luxury electric Air sedans, missing Wall Street expectations by about 500 vehicles. Year-over-year and quarter-over-quarter, Lucid’s delivery numbers were more or less flat.
The revised production guidance and weak delivery numbers come as consumers are unwilling to spend big on EVs, preferring instead to go for more budget-friendly hybrids. To keep up demand, companies around the world have been looking for ways to offer EVs at a lower price point. Tesla has been consistently slashing its prices across the board to boost sales. And automakers like Ford and Rivian are working to come to market with cheaper models.
In August, Lucid started cutting prices across the full Air lineup. Last week, the EV maker doubled down, slashing the price of its Air Touring model to $87,500, down from $95,000, and the Grand Touring by $10,000 to $115,600. The all-wheel drive Air Pure is also now at $74,900, down from $82,400.
While cheaper, those cars are still expensive, and Lucid is about to reveal another luxury EV model that will likely be just as costly.
Lucid’s Gravity SUV is set to be unveiled next week. The company said production is still scheduled to begin in late 2024. Pricing has not yet been revealed for that car, but it’s expected to come in at around $100,000.
