Lucid sees drop in July registrations painting bleak picture for Q3 results

Lucid has struggled to sell its luxury electric vehicles (EVs) through the first six months of the year. Registration data for July shows the automaker is off to a slow start for the second half of the year, painting a bleak picture for their Q3 2023 results.

According to data from Experian, there were just 348 registrations of the Lucid Air across the US in July. This figure represents a roughly 40% drop from the monthly average of 574 registrations over the first six months of the year, bringing their year-to-date registration figure to 3,789. It is also down from their average monthly deliveries in Q2. In their Q2 2023 report Lucid said it delivered 1,404 EVs, equating to an average of 468 per month. (via Automotive News)

This decline could have been the catalyst behind Lucid deciding to slash prices on the Air. In early August the company trimmed as much as $20,000 off the price of the many Lucid Air variants, bringing the entry-level variant down to US$83,900. At the time this put the Lucid Air to a price point below the Model S, but Tesla responded a few weeks later with some substantial price cuts of their own, lowering the Model S to start at US$74,990.

While the registration data is certainly a cause for concern, the other part of the equation is that it is also still well below current production levels. From January to June Lucid produced 4,487 cars, but delivered only 2,810 of them. This story of production far outpacing deliveries is something the company has reported in every quarter since it launched in 2021, leaving them with significant levels of unsold inventory. Based on their reported figures Drive Tesla estimates they have over 4,600 brand new Air sedans without an owner (~125 in 2021, 2,811 in 2022, and 1,677 so far in 2023).

As Lucid struggles to gain traction, another EV startup appears to be finding its stride. Experian data shows Rivian had 2,783 new registrations of the R1T and R1S in July. In contrast to Lucid, this was ahead of Rivian’s monthly average of 2,596 registrations so far in 2023.

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