Lucid Motors on Monday posted strong deliveries for the April to June period as the electric vehicle maker continues its restructuring and bets its future on a new SUV.
The Californian firm said it produced 2,110 vehicles and delivered 2,394 units during the second quarter of 2024. That’s an almost 22% increase from the first quarter, when Lucid had built 1,728 units and sold 1,967 units, and a 70% increase year-over-year. Lucid currently has just one model for sale, the Air luxury sedan.
Lucid stock climbed more than 8% earlier on Monday, before shedding some gains. Shares are up by almost 5% as of 10:00 a.m. ET on Monday.
The company’s success comes on the backs of a slew of price cuts across the EV market in response to slowing demand and economic uncertainties. In February, Lucid cut its prices by as much as 10%, bringing the Air Pure model down to about $71,000. That was the company’s third price cut in seven months. The entry-level Air model is now available from $69,990 or $550 per month on a three year lease.
Other companies, including Tesla, have used price cuts and other incentives to boost their sales. Ford Motor’s sales of the Mustang Mach-E exploded earlier this year after it slashed prices, while Tesla has used both price cuts and low interest financing to draw new buyers.
But, Lucid’s coffers are running much drier than some rivals. The company in May warned that its liquidity — a little more than $5 billion — can only cover the next 12 months, into the second quarter of 2025. In March, Lucid said it would raise $1 billion from an affiliate of Saudi Arabia’s Public Investment Fund.
The startup in May laid off about 6% of its workforce as part of restructuring. Lucid expects to take a $21 million to $25 million hit in charges related to the plan, the majority of which will affect its second-quarter results.
“I’m confident Lucid will deliver the world’s best SUV and dramatically expand our total addressable market, but we aren’t generating revenue from the program yet,” CEO Peter Rawlinson said in an email to staff.
Rawlinson outlined three priorities for the automaker going forward: selling more Lucid Air luxury sedans, staying on track to start production of the Gravity SUV by the end of 2024, and being “responsible” with funding. Lucid aims to produce 9,000 luxury EVs this year, up from 8,500 in 2023.
Lucid is betting on the three-row Gravity SUV to help boost its valuation, after it lost about 75% of its market value by the end of 2023. The Gravity is expected to open Lucid up to a new segment of the EV market and will directly compete with SUVs from rivals like BMW and Rivian.
Lucid reports its full second-quarter on August 5.