Luxury electric vehicle manufacturer Lucid (NASDAQ:LCID) surpassed market expectations for first-quarter deliveries, reporting a figure of 1,967 vehicles, which outpaced estimates of 1,745 from eight analysts surveyed by Visible Alpha. The announcement contributed to a 3% increase in Lucid’s shares following the news.
To stimulate demand for its luxury electric sedans, Lucid implemented price reductions ranging from 1% to 10% on its flagship Air sedans in February. This strategy aimed to counteract a market trend where consumers, influenced by high-interest rates, were reconsidering electric vehicle purchases and turning towards more affordable hybrid alternatives.
While rival Rivian Automotive (NASDAQ:RIVN) also exceeded quarterly delivery estimates last week, concerns about the overall electric vehicle demand have intensified since U.S. market leader Tesla (NASDAQ:TSLA) reported a quarterly decline in deliveries for the first time in nearly four years earlier in April, falling short of expectations.
Lucid’s production for the quarter ending March 31 stood at 1,728 vehicles, slightly below estimates of 2,123 and a decrease from 2,391 in the preceding quarter.
Andres Sheppard, senior equity analyst at Cantor Fitzgerald, expressed optimism about Lucid’s trajectory, foreseeing a continuation of production ramp-ups and delivery improvements throughout the year, particularly in Saudi Arabia.
In February, Lucid announced plans to introduce a mid-size car in late 2026, targeting a $50,000 price point to appeal to a broader customer base. This move places Lucid in a highly competitive pricing range that includes Tesla’s Model Y electric vehicle. Meanwhile, Reuters reported last week that Tesla has abandoned plans for its affordable car.
Lucid’s recent capital raise of $1 billion from Ayar Third Investment Co, an affiliate of Saudi Arabia’s Public Investment Fund, is expected to provide the company with a competitive edge over other electric vehicle startups grappling with costly production ramp-ups and financial constraints.
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