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Lucid Group announced on Wednesday that it had delivered a total of 1,404 units of its flagship model, the Air luxury sedan, during the second quarter of 2023. This figure falls short of Wall Street analysts’ estimate of about 2,000 deliveries, according to data gathered by FactSet, leading to an over 11% drop in the company’s shares in midday trading.
The second-quarter deliveries, while marking an improvement from 679 units in the same quarter of the previous year, showed a negligible decrease from the 1,406 vehicles delivered in Q1 2023 (via CNBC).
Lucid’s announcement sparked concerns about weak demand for the Air, a high-end electric sedan celebrated for its exceptional range, the longest of any EV currently available in the U.S. market. Despite its technological prowess, the vehicle’s starting price of $92,900 (prior to incentives) may be contributing to sluggish sales. The company does, however, have lower-priced versions in the pipeline.
Further underscoring its struggle, Lucid recently slashed about 18% of its workforce, equivalent to approximately 1,300 workers, in March.
Yet, it hasn’t been entirely grim news for the luxury EV maker. Lucid reported a promising partnership with British supercar producer Aston Martin Lagonda on June 26. Under the agreement, Lucid will provide Aston Martin with electric-vehicle powertrains, battery systems, and related technology in exchange for phased payments totaling around $232 million and a 3.7% equity stake in Aston Martin.
It’s notable that both Lucid and Aston Martin share an investor in Saudi Arabia’s Public Investment Fund.
In its Q1 earnings report released on May 8, Lucid indicated that it expects to produce “over 10,000” vehicles in 2023. The company also stated it had sufficient cash reserves to maintain operations until at least Q2 2024, having raised an additional $3 billion at the end of May.
Lucid is scheduled to reveal its Q2 financial results after the U.S. markets close on August 7.
