Lucid Group, the California-based luxury electric vehicle (EV) manufacturer, has released its production and delivery figures for Q1 of 2023, which ended on March 31st. According to a press release on Thursday afternoon, the company produced 2,314 EVs and delivered 1,406 during the quarter. These figures indicate a 291% increase in deliveries compared to Q1 of 2022, during which Lucid delivered 360 EVs.
However, the latest figures from Lucid Group have raised concerns about the demand for the company’s EVs. Reports suggest that the results are underwhelming, signaling demand issues for the company. As a result, Lucid’s stock price fell by more than 6% in the pre-market trading session on Friday.
In an effort to increase sales, Lucid has reduced the prices of its vehicles by $7.5K. However, this move appears to have had a limited impact, as production and deliveries have both decreased. These developments are especially concerning given that Lucid is currently in the “production ramp” stage.
Moreover, at present, the company has only a single product without many buyers at these prices. Even the cheapest Lucid Air Pure edition with a single engine (RWD), no glass roof, no lane keep assist, no premium sound system, no premium interior materials, no 3D camera, and no autonomy hardware is more expensive than a Model S LR. Lucid produced only 2,300 vehicles in Q1 of 2023, which is a significant drop from the 3,500 vehicles produced in Q4 of 2022.
Despite these challenges, Lucid remains on track to meet its annual target of producing 20,000 EVs in 2023. The company also reported strong demand for its vehicles, particularly for the Lucid Air Grand Touring, which boasts an official EPA-estimated range of 516 miles or 1,050 horsepower.
To showcase its vehicles and offer test drives to potential customers, Lucid has launched the Dream Ahead Tour, which will visit more than 40 cities across the country. The tour kicked off on April 13th in Florida and will continue until September.
Moreover, Lucid will host a conference call on May 8th to discuss its Q1 2023 financial results and provide an update on its business outlook. With these recent developments, it is evident that Lucid is making significant progress in the EV market and is poised to continue its growth trajectory in the coming months.
These figures do not bode well for the company, given that Lucid employs around 7,200 employees, a considerable number for producing just 2,300 cars per quarter. Despite these challenges, Lucid remains committed to its goal of becoming a leading player in the EV market and will likely need to make significant changes to its strategy to achieve this goal.
