Lucid Motors has revealed its plans to introduce the much-anticipated all-electric Gravity SUV this November. However, the production timeline for the vehicle is now postponed until late 2024.
Initially intending to commence production at its Arizona factory in late 2023, Lucid faced delays that pushed the production launch into the following year. The company, renowned for its high-end luxury sedan, had not disclosed a specific quarter for the production’s commencement.
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The Gravity SUV had its first public appearance in 2020 when Lucid showcased it during the Air sedan unveiling event. At that juncture, Lucid affirmed that the Gravity was already deep into the design phase, even presenting a functional prototype that was spotted in the summer of 2020.
Nonetheless, Lucid’s forward momentum appeared to stall as challenges emerged in the production of the Air sedan. A significant update arrived in April 2023 when the automaker initiated real-world road testing of pre-production versions of the Gravity SUV.
While the price tag for the upcoming Gravity SUV has not been disclosed by Lucid, the company could potentially feel compelled to reach a lower price point than initially projected. Notably, Lucid recently slashed the cost of its Air Pure sedan by $5,000 to $82,400. It also implemented price reductions for the Air Touring and Grand Touring variants by $12,400, resulting in prices of $95,000 and $125,600, respectively.
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Lucid’s announcement of the Gravity’s production timeline was embedded within its second-quarter earnings report, which did not meet Wall Street’s expectations. During this quarter, the U.S.-based automaker generated $150.9 million, marking a 55% increase from the comparable period the previous year. However, this financial performance fell short of analyst forecasts, which had anticipated revenue reaching $175 million based on Yahoo Finance data.
In the previous month, Lucid announced that it had successfully delivered 1,404 units of the Air sedan during the second quarter. Despite this doubling of EV deliveries compared to Q2 2022, the figure was still approximately 600 units below analysts’ projections. This outcome influenced a decline in the company’s stock shares. Interestingly, the delivery numbers remained consistent with those of the first quarter of 2023, in which 1,406 vehicles were delivered.
In terms of financials, Lucid reported a net loss of $764.2 million for the second quarter, a substantial increase from the loss of $220.4 million recorded in the same period a year earlier. Furthermore, on a diluted basis, the net loss for Q2 2022 was noted at $555.3 million.
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Lucid also disclosed a negative free cash flow of $904 million. Despite this, the automaker successfully raised $3 billion in capital during the second quarter, including a notable contribution of $1.8 billion from Saudi Arabia’s Public Investment Fund (PIF). Lucid’s liquidity stood at $6.25 billion, a financial position that Lucid’s Chief Financial Officer, Sherry House, asserts will support the automaker through the initiation of Gravity production and extend into 2025.
Lucid maintains its 2023 outlook, which was previously revised in February. The company halved its initial target of producing 20,000 to 22,000 vehicles to a more modest range of 10,000 to 14,000 vehicles. Presently, Lucid is affirming its commitment to delivering “more than 10,000 vehicles” by the end of this year.
Following the earnings report, Lucid’s stock exhibited a 4.5% increase in after-hours trading, reflecting the market’s initial response to the news.
