Lucid Motors, the luxury electric vehicle (EV) manufacturer, recently released its full 2022 financial results, and it’s not good news. Despite achieving its production guidance and boasting over 34,000 reservations at the end of 2021, Lucid’s future seems to be dimming. The automaker missed some critical goals, and its 2023 production target is set very low. The stock prices dropped nearly 14 percent during the trading day.
The reservation banks have dropped to 28,000, and reports suggest that Lucid may have called potential customers over a dozen times to save sales. On top of that, the fourth-quarter revenue was only $257.71 million, while the estimated revenue was $302.61 million.
See also: Lucid Motors Reports Disappointing Q4 2022 Results but Remains Optimistic for Future Growth
Lucid aims to build between 10,000 and 14,000 cars in 2023. Although this number may sound impressive compared to the 7,180 vehicles built last year, it is a slow ramp-up. On average, analysts expect Lucid to build 21,815 cars this year, which is higher than the current 2023 production goal. Moreover, Lucid delivered only 4,369 cars in 2022, significantly less than the number built.
As Tesla and Ford cut their EV prices, Lucid faces tough competition. It has to decide whether to cut its prices, risking its profit margins, or stand pat on pricing and risk losing buyers. Currently, the company is offering $7,500 off select Air models.
See also: Lucid Motors Unveils More Affordable RWD Version of Lucid Air Pure EV With Range Upto 406 Miles
CEO Peter Rawlinson tried to put a positive spin on the situation, saying, “Last year was a challenging year for everyone, yet despite the extraordinary supply chain and logistics challenges, the team persevered with an unrelenting focus on delivering what we believe is the best luxury sedan on the market.”
There is no denying that the Lucid Air is an excellent sedan, but the question remains whether the company can generate enough interest and sales to sustain its future. With these financial results, the road ahead looks challenging for Lucid Motors.
