Lucid Motors, despite a second-quarter net loss of $764.2 million, remains committed to achieving its 2023 production target of 10,000 Air sedans, having delivered 2,810 units in the first half of the year. In an effort to bolster sales, the company plans to implement price reductions, tap into the Saudi Arabian market, and introduce new versions of its flagship Air sedan.
To amplify sales, Lucid Motors will be delivering Air models to Saudi Arabia under an agreement with the government to supply 50,000 vehicles over a decade. CEO Peter Rawlinson also confirmed that sales to individual consumers in Saudi Arabia will be pursued.
The Saudi Arabian Public Investment Fund, a majority shareholder of Lucid Group, has recently invested an additional $1.8 billion in the company, part of a larger $3 billion stock offering aimed at strengthening Lucid’s financial position.
Despite a Q2 net loss of $764.2 million, which widened compared to the same period last year, Lucid’s revenue increased by 55 percent to $150.9 million, driven by the delivery of 1,404 vehicles.
Looking forward, Lucid anticipates launching new versions of the Air sedan to stimulate demand. This includes a more affordable variant of the base Air Pure trim with rear-wheel drive, as well as a high-performance Air Sapphire model, projected to cost around $250,000 before shipping. Both these models are expected to hit the market in the latter half of the year.
In addition, Lucid plans to unveil its second vehicle, the Gravity crossover, in November, with sales expected to commence in late 2024. Lucid is also working on raising brand awareness through marketing campaigns and test drive events across the United States.
Acknowledging the competitive landscape and the need to increase brand exposure, Lucid Motors is willing to adjust pricing to match market conditions and encourage sales, according to CEO Peter Rawlinson. The company is currently facing a price war following Tesla’s price reductions earlier in the year.
Despite these challenges, Lucid has been able to secure funding through a stock offering, with its cash balance at the end of Q2 amounting to $2.78 billion, a significant increase from $900 million at the end of the previous quarter. Lucid’s stock also saw a modest increase of around 3 percent in after-market trading following the company’s latest announcements.