Lucid Motors (LCID) is cutting its 2023 production target as its losses widened in the third quarter of 2023. The electric vehicle maker faces stiff competition in the premium electric vehicle market.
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Despite initial plans to build between 10,000 and 14,000 cars this year, Lucid Motors is revising its plans as electric vehicle sales fail to gain momentum.
Lucid Motors delivered 1,456 electric vehicles in the third quarter, up slightly from 1,404 in the second quarter. Deliveries have been down since a peak of 1,932 in the fourth quarter of 2022.
Production has also fallen by over 50% from a peak of 3,493 in the fourth quarter of 2022 to just 1,550 in the third quarter.
Lucid had said earlier this year that it would likely meet the lower end of its production target. However, the company adjusted its forecast downward after its third-quarter earnings results.
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Lucid Motors is reducing its electric vehicle production target due to widening losses.
The company expects to build between 8,000 and 8,500 vehicles this year.
This represents a decline of over 40% from its highest target from the fourth quarter.
Lucid CEO Peter Rawlinson said they recognize there is still work to be done in the area of customer service and deliveries.
The company reported third-quarter revenue of $137.8 million, compared with $195.5 million a year ago. Due to reduced production, Lucid's operating loss widened to $752.9 million, from $687.5 million a year ago. The company's net loss widened to $630.9 million in the third quarter. Overall, Lucid's losses reached $2.17 billion in the first nine months of the year.
Specifically, Lucid Motors loses about $433,000 per electric vehicle it delivers.
Lucid CFO Sherry House explained that they have made progress on the cost control program implemented in the first half of the year and have identified additional opportunities for 2024.
The company ended the third quarter with $5.45 billion in cash, which “we expect to carry us through to our next major milestone by 2025, the production of the Gravity model,” according to House.
In order to increase demand, Lucid Motors cut prices of its Air electric cars by up to $12,000 earlier this year.
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Lucid Motors is expanding its lineup to expand its market share. The company has begun deliveries of the Lucid Air Sapphire, which competes with the Tesla Model S Plaid.
Lucid's first electric SUV, the Lucid Gravity, will be unveiled at the LA Auto Show next week. Rawlinson said the Gravity will "redefine electric SUVs" and that production remains on schedule to begin in late 2024.
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Lucid Motors shares are down about 5% after the company reported third-quarter financial results and production guidance. Shares are down about 69% over the past 12 months.
Source: electrek.co
