Monday, July 15, 2024

Lucid’s Q3 2023 Prospects Dim as Sales Decline, While Rivian Thrives

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Luxury electric vehicle (EV) manufacturer Lucid Motors has encountered sales difficulties in the first half of the year, reflecting a challenging outlook for their Q3 2023 results. According to recent data from Experian, Lucid experienced a slowdown in sales, with just 348 registrations of the Lucid Air across the United States in July. This figure marks a significant decline of approximately 40% from the monthly average of 574 registrations during the first six months of the year, resulting in a year-to-date registration total of 3,789. This decline also represents a drop from Lucid’s average monthly deliveries in Q2, where they reported delivering 1,404 EVs, averaging 468 per month.

In response to these challenges, Lucid took action by reducing prices on its Lucid Air models. In early August, the company announced price cuts of up to $20,000 on various Lucid Air variants, making the entry-level model available for as low as $83,900. However, this move was countered by Tesla, which subsequently lowered the starting price of its Model S to $74,990.

While the registration data raises concerns for Lucid, it is important to note that their production levels continue to outpace their deliveries. Between January and June, Lucid produced 4,487 vehicles but delivered only 2,810 of them. This pattern of production exceeding deliveries has been consistent since the company’s launch in 2021, resulting in a significant inventory of unsold vehicles. Based on reported figures, Estimates that Lucid currently has over 4,600 brand-new Air sedans awaiting buyers, including approximately 125 from 2021, 2,811 from 2022, and 1,677 from 2023.

In contrast to Lucid’s challenges, another EV drstartup, Rivian, appears to be making strides in the market. Experian data indicates that Rivian saw 2,783 new registrations of its R1T and R1S models in July. This performance surpasses Rivian’s monthly average of 2,596 registrations in 2023, indicating positive growth for the company in the competitive EV market.

As Lucid grapples with sales hurdles, Rivian’s performance highlights the dynamic nature of the electric vehicle industry, where competition and consumer preferences continue to evolve.

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