Lucid Motors, a maker of electric vehicles considered a potential competitor to Tesla, said Thursday that it had delivered only a few hundred vehicles during the first three months of the year, but that it was still on track to sell at least 12,000 vehicles by the end of 2022 despite the slow start to the year.
The firm, which is managed by a former top Tesla engineer, has been dubbed “one of the most promising start-ups in the field of electric cars.” It was founded in 2012. However, the company surprised investors in February when it disclosed difficulties in producing enough vehicles at its Arizona manufacturing to meet demand and reduced its production target for the year. Lucid’s stock has dropped two-thirds of its value since reaching a high in November of last year.
Ms. House said in an interview that the demand for Lucid vehicles has remained robust. She estimates that an extra 5,000 reservations received since February would result in an additional $500 million in sales if they are converted to firm orders, she says.
It delivered 360 automobiles in the first quarter, a significant increase over the previous quarter’s delivery of 125 vehicles. Peter Rawlinson, who developed the Tesla Model S before forming Lucid, said in an interview on Thursday that the business delivered 300 vehicles in April, an indication that manufacturing is ramping up swiftly. He and Ms. House both said that supply chain issues are becoming less problematic.
In Mr. Rawlinson’s words, “we can truly see the light at the end of the tunnel now.” He acknowledged that the corporation has been affected by shortages of some supplies, but he did not name which ones.
A net loss of $81 million was recorded by the corporation in the first quarter of 2022, despite revenues of $58 million. A year before, when the company’s sales was minimal, Lucid recorded a $2.9 billion loss in the same quarter of the previous year.
A review of Lucid’s first product, the $169,000 Lucid Air Dream Edition sedan, in MotorTrend magazine commended the vehicle’s design, craftsmanship, and range of over 520 miles. The publication called the vehicle “car of the year.” The Environmental Protection Agency’s ranks of the best fuel-efficient electric vehicles are dominated by Lucid and Tesla automobiles.
Lucid, like many other young automobile businesses, has had difficulty in scaling up manufacturing. In a statement released Thursday, Lucid said that costs for new bookings will be raised starting in June. A new car will cost $87,400 before government incentives, with the most cheap costing $87,400 and the most costly costing $179,000 before government incentives. Tesla and other electric vehicle makers have also hiked their costs significantly, making their vehicles even more out of reach for middle-income purchasers.
Ms. Rawlinson said that “we are seeing enormous inflation pressures, especially for key raw materials that have an impact on the pricing of battery cells.” However, he stated that he was “extremely optimistic about the future of electric vehicle adoption” due to efficiency improvements that will lower costs.
Lucid claims it has financial reserves of $5.4 billion from investors, including the Saudi Arabian national wealth fund, which will allow it to operate until at least 2023, according to the company.