Lucid surpassed market expectations for second-quarter deliveries, buoyed by strategic price reductions that bolstered demand for its high-end electric sedans. The company’s shares rose approximately 4% following the announcement on Monday, reflecting investor optimism.
In response to a slower-than-anticipated growth in electric vehicle (EV) demand due to economic uncertainties and consumer preferences for hybrid alternatives, industry leaders such as Tesla and Lucid have implemented price cuts and financing incentives to attract buyers.
Lucid slashed prices of its flagship Air sedans by up to 10% in February, contributing to a total production of 3,838 vehicles in the first half of 2024. The company aims to manufacture over 5,162 cars by year-end to achieve its annual target of 9,000 units, following the production of 8,428 vehicles in 2023.
“I think at this point, everything is shaping for them to achieve that guidance,” remarked Andres Sheppard, senior equity analyst at Cantor Fitzgerald.
Looking ahead, Lucid anticipates increased production and deliveries in the second half of the year, a seasonal trend common in the automotive sector. The company delivered 2,394 vehicles in the quarter ending June 30, surpassing analyst estimates of 1,940 units, according to data from eight analysts polled by Visible Alpha.
With Saudi Arabia’s Public Investment Fund holding a majority stake of 60%, Lucid plans significant capital expenditure of $1.5 billion in 2024, up from $910.6 million the previous year.
This investment aims to support the upcoming production launch of its Gravity SUV, priced around $80,000, which will compete directly with Tesla’s Model X, while its Air sedan challenges Tesla’s Model S in the luxury electric sedan market.
