Lucid Motors Q1 Production and Delivery Fall Short of Expectations, Plans Restructuring to Cut Costs

Lucid Motors Q1 Production and Delivery Fall Short of Expectations

Luxury electric carmaker Lucid Group Inc (LCID.O), released its Q1 production and delivery figures, which fell short of expectations. The Newark, California-based company produced 2,314 vehicles and delivered 1,406 in the quarter ended Mar. 31. While these figures are lower than the previous quarter, Lucid Motors was already anticipating weak production for this year.

Lower Production and Deliveries in Q1

Lucid Motors had produced 3,493 vehicles and delivered 1,932 in the December quarter. With only 2,314 vehicles produced and 1,406 delivered in Q1, the drop in numbers has resulted in a 3% fall in Lucid shares in after-market trade.

Further, in February, the company had released its full-year forecast, estimating production of 10,000 to 14,000 luxury vehicles, which falls far below analysts’ estimate of 21,815 cars.

Layoffs and Restructuring

Lucid Motors, backed by Saudi Arabia’s sovereign wealth fund, Public Investment Fund, is already dealing with supply chain and logistics issues. Last month, it announced plans to lay off around 1,300 employees or about 18% of its workforce as part of a restructuring plan to cut costs.

Lucid Motors Quarterly Results and Future Prospects

The company will report its quarterly results on May 8. The company’s aggressive price cuts due to rising interest rates and high inflation, as well as competition from Tesla, have led to a difficult year for Lucid Motors. However, the company has plans to expand into Europe and Asia and expects to increase production over time. However, given its competition (Tesla Motors), will the expansion into new Asian and European markets help the company survive?

Company’s current cars include Air Grand Touring that comes with 21” Aero Blade wheels, Tahoe interior, and max power 819 hp. Customers can acquire the car via lease with Lucid Financial Services, and receive unlimited charging with Electrify America after reserving or purchasing Air Grand Touring before June 2023.

Source : Reuters