Lucid Motors will only build 9,000 EVs in 2024 after once predicting it would ship 90,000 | TechCrunch (2024)
Lucid Motors plans to build just 9,000 electric vehicles in 2024, only 500 to 1,000 more than it made in 2023, as it struggles with demand for its luxury sedans. If it sticks to that number, that means Lucid will wind up building around 10% of the 90,000 EVs it predicted it could make and sell in 2024 when it went public three years ago.
The chasm between the new figures and those original expectations spotlights how much freedom companies like Lucid had in promoting the reverse mergers that helped so many become publicly listed. And it’s a sign of the brutal reality Lucid now faces: that it’s still scrambling to find buyers and losing money on every EV it builds.
Lucid announced the 2024 production targets on Wednesday alongside its financial results for last year, where it shared that it lost $2.8 billion in 2023. The modest projection comes a few days after the company slashed the prices of its Air sedan by $8,000.
CEO Peter Rawlinson has spent much of the last year talking about how important it is for his company to improve its sales and marketing efforts, while also pointing to the upcoming Gravity SUV as a potential boost. The Gravity is one of the reasons Lucid originally forecasted being able to make and ship 90,000 vehicles in a few short years. In fact, in the presentation Lucid used to promote its 2021 merger with a special purpose acquisition company, it predicted the Gravity would outsell the Air sedan in 2024.
The reality, though, was that Lucid ran into a number of supply chain and production problems in the early days of the Air and in 2022 had to push back the launch of the Gravity. The company finally revealed the SUV in November 2023, and says it plans to start building them by the end of this year.
The Gravity means a lot for Lucid’s immediate future — so much so that the company announced last week that it gave Rawlinson a $6 million cash bonus for unveiling the SUV. Lucid is working on a mid-size platform meant to compete with Tesla’s Model Y, but that won’t come until late 2026 at the earliest.
There are other things that could give the company a boost. It only just recently started selling a rear-wheel drive version of its base model Air Pure, which — with the recent price cuts — now starts under $70,000. Rawlinson said Lucid ran into technical challenges with the early production of the Air Pure, but that it is now fully ramped.
Lucid also last year announced it was selling some of its EV technology to Aston Martin. Rawlinson said on a call Wednesday that Lucid continues to talk to other companies both in and outside of the automotive industry about striking similar technology licensing and supply agreements. He even said Lucid is “seeing interest in our technology for use in hybrid electric vehicles.”
Saudi Arabia, which owns a majority of Lucid Motors through its Public Investment Fund, has also agreed to purchase as many as 100,000 EVs from Lucid over the next decade. The company started shipping Air sedans to the Kingdom late last year, though Rawlinson said Lucid initially ran into “different market dynamics and intricacies unique to that market” that slowed the initial rollout. But he said Lucid “expect[s]goodgrowthintheregionthisyear.”
This story has been updated with details from Lucid Motors’ investor call.
Lucid Group, Inc. is an American manufacturer of luxury electric vehicles, headquartered in Newark, California. Lucid vehicles are designed in California and manufactured at Lucid's factory in Arizona. The company was founded in 2007.
will only build 9,000 EVs in 2024 after once predicting it would ship 90,000. Lucid Motors plans to build just 9,000 electric vehicles in 2024, only 500 to 1,000 more than it made in 2023, as it struggles with demand for its luxury sedans.
Lucid said it was on track to produce 9,000 cars this year, compared to the 8,428 vehicles it made last year. Seven analysts polled by Visible Alpha expected the company to make 12,677 units on average in 2024.
Over time, investors became increasingly concerned with Lucid's lackluster growth and spiraling losses -- challenges that are yet to improve. In the fourth quarter of 2023, revenue declined 39% year over year to $157.2 million as the company sold fewer cars for lower prices.
However, it only expects to expand the annual production capacity of its Arizona plant to 90,000 vehicles by the end of 2024, while its new Saudi Arabian plant -- which only produces 5,000 vehicles annually -- might produce 155,000 vehicles per year by the "middle of the decade." So even in a best-case scenario where ...
Lucid Group, Inc. stock would need to gain 3,916.06% to reach $100. According to our Lucid Group, Inc. stock forecast, the price of Lucid Group, Inc. stock will not reach $100. The highest expected price our algorithm estimates is $ 17.73 by Jun 28, 2025.
The 9 analysts with 12-month price forecasts for Lucid Group stock have an average target of 3.82, with a low estimate of 2.90 and a high estimate of 5.00. The average target predicts an increase of 53.41% from the current stock price of 2.49. * Price targets were last updated on May 8, 2024.
The rally pushed the company's valuation to $89.3 billion, surpassing that of Ford F 3.06%increase; green up pointing triangle for the first time since Lucid's debut on the public markets over the summer. Lucid also edged closer to General Motors Co., which at Tuesday's close was worth about $91 billion.
The company faces significant challenges, including fierce competition, price considerations, and the need to continually improve its technology. However, if Lucid Motors can navigate these challenges successfully, it has the potential to become a key player in the EV industry.
Lucid makes impressive luxury electric vehicles, but it's a long way from being a profitable company. Lucid Motors (LCID -1.97%) highlighted the accolades its electric vehicles (EVs) have received when it reported its full-year 2023 financial results back in February.
On the heels of recent production shortfalls and a major recall for its 2022 and 2023 model Lucid Air vehicles, new signs of weakening EV demand threaten Lucid's outlook. The company is already facing some business-specific challenges, and the overall industry now appears to be moving in unfavorable directions.
Lucid, for its part, says it has enough cash on hand, $4.78 billion, to last it into 2025. Plus, it's majority-owned by the sovereign fund of the enormously wealthy Saudi government, which could offer a liferaft if things get too choppy.
Lucid Group, Inc. is an American manufacturer of electric vehicles and electric vehicle components. The company is headquartered in Newark, California. In September 2021, the company began producing the Lucid Air sedan at its factory in Casa Grande, Arizona.
The 2024 now starts at $71,400. Above that, the Touring goes for $79,400, down from $87,400. Next is the Grand Touring model, which sees a smaller price drop from $112,400 to $111,400.
During the Q1earnings call pointing to the nearly $5 billion in cash and cash equivalents, Rawlinson noted that the company has “enough financial runway to see us well into 2025.”
According to the latest long-term forecast, Lucid price will hit $3 by the middle of 2025 and then $4 by the middle of 2027. Lucid will rise to $5 within the year of 2028, $7 in 2033 and $8 in 2035.
For 2024, Lucid eliminated the previous 1,050-hp Grand Touring Performance, leaving the standard Grand Touring with “only” 819 hp and 885 lb-ft of torque, enabling a zero to 60 mph time of 3.0 seconds and a 168 mph top speed.
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