Lucid has set a new record for deliveries in the second quarter of 2024. On Monday the company reported delivering 2,394 vehicles. This is a significant 21.7% increase from the 1,967 units delivered in the first quarter of the year, which itself set a new delivery record for Lucid.
Lucid’s growth over the last two quarters is a positive signal for the automaker, which has struggled to gain a footing in the competitive EV landscape. The company, backed by Saudi Arabia’s Public Investment Fund, has faced several challenges, including financial constraints and market competition.
However, recent efforts to make its luxury Lucid Air sedan more accessible by slashing prices have paid off. The base model, the Air Pure, which once hovered around $100,000, now starts at just over $81,000 in Canada with recent incentives, and just under $70,000 in the US, making it more attractive to a broader range of consumers.
Despite the positive delivery numbers, Lucid still faces significant financial challenges. The company recently announced that its liquidity, totaling a little over $5 billion, would only cover operations until the second quarter of 2025. In response, Lucid has implemented cost-cutting measures, including layoffs and the aforementioned price reductions.
In May, the company laid off about 6% of its workforce as part of its restructuring efforts, anticipating a financial impact of $21 million to $25 million, primarily affecting its second-quarter results.
The next big milestone for Lucid will be the launch of the Gravity SUV, set to begin production by the end of this year. This model is expected to compete directly with offerings from established automakers, as well as those from Tesla and Rivian, potentially expanding Lucid’s market share by tapping into the popular SUV market.
The company’s second-quarter performance has already resulted in positive reactions from the market. Lucid shares saw a near 5% increase at the time of publication.
Lucid Motors will release and discuss its full second quarter financial results on August 5, 2024.
