Lucid barely gets started after crossing the starting line

The young electric vehicle manufacturer reports a slowdown in demand to justify disappointing sales.

With only 1,550 units of the Lucid Air produced and 1,457 delivered, the company’s quarterly figures have been steadily declining since the beginning of the year. These figures represent a nearly 30% drop from the previous quarter, a fact that has not been ignored by stock analysts this week.

This production pace is a problem because Lucid had set a target of more than 10,000 vehicles for 2023. The manufacturer has a lot of ground to make up in the last quarter of the year, with just under 4,000 vehicles to be produced, which seems mission impossible.

Lucid has attempted to react by recently launching the cheapest version of the Air, in the form of a single-motor propulsion model, and is about to unveil the Gravity SUV, which is expected to go into production in 2024.

While the giants are engaged in a merciless price war, it is not easy to find one’s place in a saturated market that is itself slightly declining. Lucid is doing what it can with what it has, also responding by reducing its prices a few weeks ago, with little effect. The hope remains for the success of the Air sedan, the most affordable to date, with a single motor available at a catalog price of $77,400, which is $5,000 less than what was previously the most affordable Air variant. As always in the United States, this price excludes local taxes (each state has its own VAT policy). Power drops to 430 hp and range stabilizes at 659 km. Accelerating from 0 to 100 km/h requires 4.7 seconds. Of course, Tesla did not delay in reacting and immediately lowered the price of its Model S – all-wheel drive, 651 km of range, 0 to 100 km/h in 3.1 seconds – at $71,090 (67,500 euros). This is how Elon Musk’s side wins a match, and it’s safe to say that any attempt by Lucid will be immediately countered, which does not bode well for a peaceful future.

The good news, because one has to find some, is that Saudi Arabia has reached an agreement to purchase 50,000 Lucid Air sedans for government use over a 10-year period, ensuring long-term demand. A reward for opening the first automobile factory on Saudi soil. Lucid also claims to have enough liquidity to fund itself until 2025.

Finally, much hope now rests on the Gravity SUV, but it will not arrive in an unoccupied segment, as after facing its American rival Tesla, it will have to contend with fierce competition from European manufacturers eager for this segment.