July 21, 2024
Electric & Hybrid Cars

Beating Quarterly Delivery Estimates with Lucid Mindset

Lucid Group announced second-quarter deliveries exceeding market expectations on Monday, as reductions in prices contributed to increased demand for its high-end electric sedans.

The demand for electric vehicles has seen slower growth than anticipated over the past year, impacted by high interest rates, economic uncertainties, and consumer preference for hybrid alternatives.

To attract consumers, EV market leader Tesla and other companies, including Lucid, have implemented price cuts and incentives such as more affordable financing options.

Lucid’s shares rose approximately 4% on Monday after the company slashed prices of its flagship Air sedans by up to 10% in February.

Within the first half of 2024, the EV firm manufactured 3,838 vehicles and aims to produce over 5,162 cars by year-end to meet its annual output target of 9,000 units. In 2023, they manufactured 8,428 vehicles.

“I believe that they are on track to meet their guidance at this stage,” stated Andres Sheppard, senior equity analyst at Cantor Fitzgerald.

Lucid is expected to increase production and delivery in the latter half of the year, in line with seasonal trends in the automotive industry.

In the quarter ending June 30, the company delivered 2,394 vehicles, surpassing the estimated 1,940 units according to eight analysts surveyed by Visible Alpha.

Rivian Automotive reported positive second-quarter deliveries last week, while Tesla reported a smaller-than-expected decline.

Saudi Arabia’s Public Investment Fund holds a 60% stake in Lucid, which announced in May an anticipated capital expenditure of $1.5 billion in 2024, up from $910.6 million the previous year, as it prepares to commence production of its Gravity SUV.

Priced at approximately $80,000, the Gravity SUV is expected to enter production later this year and will compete with Tesla’s Model X. Lucid’s Air sedan is a rival to Tesla’s popular Model S.

Lucid is scheduled to release its quarterly results on Aug. 5.

 

FAQs

1. What were Lucid Group’s second-quarter delivery numbers like?

2. How has the demand for electric vehicles been affected in the past year?

3. What measures have EV companies like Lucid taken to attract consumers?

Conclusion

Lucid Group’s second-quarter deliveries exceeded market expectations, with the company implementing price cuts to drive demand for its luxury electric sedans. The electric vehicle market has faced challenges, but companies are adapting by offering incentives and reducing prices. Lucid’s upcoming production plans indicate a positive outlook for meeting its annual output targets.

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