Lucid is raising prices on its luxury Air EV by 13%
Lucid Group is the latest automaker to raise the price of its electric vehicles.
The company announced in its first quarter earnings report on Thursday that it has been raising the prices of its luxury air sedan variants since June 1. The price hike would push the Air sedan’s original price by 13%.
All existing reservation holders will not experience a price hike, the company said, adding that the updated price for Canada will be made public on June 1. Considering that Lucid has revealed that it has 30,000 reservations for Air, it will take some time before the company sees a profit. Prices raised by these.
Air Grand Touring increases the cost to about $ 15,000 to $ 154,000; Air Touring costs $ 12,400 more at $ 107,400; And Air Pure rises to $ 10,000, $ 87,400. The Lucid Air Grand Touring Performance Model, announced two weeks ago, will be at $ 179,000. All these prices are for the original models, so the final price tag will be higher for consumers.
Other automakers, such as Tesla and Rivian, have announced similar increases in the price of their electric vehicles, blaming the epidemic and supply chain problems following the Russian-Ukraine invasion and inflation, and rising costs from suppliers. Customer. In the Rivian case, the company was initially going to raise prices for those with reservations, but quickly reversed that decision.
“Like many companies in our industry, we are facing global supply chain and logistics challenges, including the Covid-related factory shutdown in China. Despite that, today we are reaffirming our 12,000-14,000 vehicle production forecast for 2022, which is integrated with our mitigation plans based on the information we have at this point. “
Lucid’s guidance for deliveries remains unchanged, and the company says it is still expecting Air Grand Touring Performance deliveries in June, while Air Touring and Air Pure are expected later this year. Peter Rawlinson, CEO and CEO of Lucid, said the Project Gravity SUV aims to begin production in the first half of 2024.
In the last quarter, Lucid lowered its guidance by 20,000 units, promising its Q3 earnings.
EV Startup said it is now in strong demand with more than 30,000 customer reservations, representing a potential sale of $ 2.9 billion. Another question is whether it will be able to keep up with demand with its current price hike, but perhaps the rich enough to buy a Lucid vehicle will simply see an additional $ 12,000 as a pocket change.
The company noted that the Saudi government has recently signed an agreement to buy 100,000 electric vehicles from Lucid over the next 10 years. The deal, announced last month, follows a loan agreement from the Saudi government that the companies entered into at the end of February, according to Lucid’s 10-Q filing with the Securities and Exchange Commission. The deal also allows Saudi Arabia to loan Lucid up to $ 1.4 billion, which in some cases may reduce the availability of capital.
Lucid Motors Q1 2022 Finance
Lucid Motors closed the quarter with revenues of $ 57.7 million, driven primarily by customer deliveries of 360 vehicles for the three months ending March 31, the company said. This is a massive increase from the $ 313,000 the company received in the last quarter. Year. This is higher than analysts’ expectations of $ 53.43 million, according to Yahoo Finance estimates.
The company reported a net loss of $ 81.3 million in the first quarter, an improvement on last year’s $ 748 million loss. According to the filing with the SEC, Lucid says it expects to incur substantial losses and rising costs to equip and expand manufacturing facilities in Arizona and Saudi Arabia, increase installation charging partnerships, and commonly develop as a company.
Lucid’s balance sheet shows about $ 5.4 billion in cash, which the company says will be enough to fund operations by 2023. This aligns with analysts’ expectations of easing supply chain issues in the second half of the year, allowing the company to increase production and expand its product range and potentially adhere to its long-term growth strategy, including overseas availability.
Despite a slightly rosier outlook for future production, Lucid’s shares are down nearly 7% in after-hours trading, which may be due to vehicle price increases.
Legal updates
Lucid is dealing with some lawsuits from investors alleging that the company made false and misleading statements about the expected production launch for Lucid Air, and the SEC is investigating the SPAC merger with Churchill Capital Corporation IV and Ativa. Inc.
The latest action filed against shareholder Victor Manzino on Thursday was filed Thursday, April 1, based on similar allegations relating to statements of updating the projections and guidance provided through the give up of 2021 and starting of 2022.
Sources Lucid Motors
Credited: Rebecca Bellan. / Techcrunch.
