Lucid Group Exceeds Q2 Delivery Estimates, Shares Rise 6% in PreMarket Trading
Lucid Group, a luxury electric sedan manufacturer, reported second-quarter deliveries that surpassed analysts' expectations on Monday. The company's shares surged approximately 6% in premarket trading as price cuts helped drive demand for its electric vehicles.
Factors such as high borrowing costs, economic uncertainties, and consumer preference for gasoline-electric hybrids have previously dampened the demand for EVs. In response to slowing demand, market leaders like Tesla and Lucid have implemented price reductions and increased incentives like cheaper financing options to attract consumers.
Lucid slashed prices of its Air sedans by up to 10% in February, leading to a boost in deliveries. The company delivered 2,394 vehicles in the second quarter, exceeding the estimated 1,940 units. Production also increased to 2,110 units from 1,728 vehicles in the prior quarter.
With Saudi Arabia's Public Investment Fund holding a majority stake in the company, Lucid plans to ramp up its capital expenditure to $1.5 billion by 2024 to support the production of its upcoming Gravity SUV. Priced at around $80,000, the Gravity SUV is expected to compete with Tesla's Model X.
While Rivian Automotive and Tesla also reported positive second-quarter delivery results, Lucid reaffirmed its annual production forecast of 9,000 cars in 2024. This is an increase from the 8,428 vehicles produced last year.
In conclusion, Lucid Group's strong performance in the second quarter demonstrates its ability to navigate challenges and capitalize on market trends. As a potential investor or consumer, it is important to monitor these developments to make informed decisions about your finances and future investments in the electric vehicle industry.