- Lucid Group sought to reassure investors that it is on track to meet production targets for the year, after the luxury electric car maker reported worse-than-market quarterly results. The company's stock jumped as much as 7% in after-market trading after CEO Peter Rawlinson said in a statement Monday that Lucid is on track to manufacture more than 10,000 cars this year. The company's second-quarter loss came in at 40 cents per share, or 6 cents more than analysts' estimates.
- Its revenue of $150.9 million also fell short of market expectations. Last July, the company announced that it had sold 1,404 cars over the period, despite an increase in production to 2,173 cars. Lucid is one of several emerging auto companies seeking to become a real competitor to Tesla. However, since it started production in 2021, it has faced severe difficulties in reaching buyers for its sedan, whose price starts at about $87,000 and may exceed $100,000, depending on the features that the customer may choose.
Why it matters
The company has repeatedly revised its ambitions, recently saying it only expects to produce close to its minimum target of 10,000-14,000 cars for this year. In March, Lucid announced plans to cut staff numbers by nearly 20٪. Over the weekend, the company announced several price reductions for various models of its sedan. "We are on track to meet the 2023 production target of more than 10,000 vehicles, but we recognize we still have work to do to grow our customer base," Rawlinson said in a statement on Monday.