Lucid loses more than US$335,000 on every electric vehicle it sells
It is not easy for an automaker to make a vehicle with a lot of new technology profitable. This is even more true in the case of an electric vehicle and especially, among new manufacturers who are trying their luck.
If Tesla has successfully completed the challenge, this will certainly not be the case for everyone. We can even think that well-established brands could eventually disappear, since the challenge in terms of electrification could be insurmountable for certain traditional manufacturers.
We know that Rivian has great difficulty achieving profitability, but a recent article from Bloomberg mentions that Lucid is widening its deficit more and more each year. The media estimates that Lucid loses approximately US$338,000 for each Air model, its electric luxury sedan, that it sells. This is an even greater loss per vehicle than that reported for Rivian.
The manufacturer is also losing pace in terms of sales with only 1,457 units sold and delivered in the last quarter, a significant drop compared to the 2,173 units sold in the second quarter of 2023. Lucid did not mention the reasons for this drop, but it is very likely that the company will not be able to reach its goal of 10,000 vehicles produced this year.
“Lucid is well below the pace needed to reach even 10,000 cars this year, which is why they continue to lose money,” according to Jerry Braakman, chief investment officer of First American Trust. “The action will continue to be tested until they can demonstrate that they have made significant progress in the number of copies sold. »
Three points of sale across the country
The stock lost nearly 25% of its value due to the brand’s poor performance. For the moment, Lucid only sells the Air, a luxury electric sedan, and its base price is nearly $150,000 in Canada. The brand has three sales and delivery studios across the country, including one on St-Jacques Street in Montreal.
The company is, however, counting on the arrival of its first SUV, the Gravityin order to increase its sales.
Our opinion
It’s not easy to predict which new manufacturer or brand will remain in the long term. This is why RPM always remains cautious before recommending any new model or brand to you. Everyone must prove themselves before they recommend their purchase to you.
