Lucid Group has revised its production expectations for 2024, setting a target significantly below initial analyst estimate. The luxury EV manufacturer now aims to produce 9,000 units in 2024, a stark contrast to the anticipated 22,594 units forecasted by analysts surveyed by Visible Alpha and as reported by various media outlets.
Originally projecting to manufacture and sell 90,000 EVs in 2024, as highlighted by a TechCrunch report, the company has now recalibrated its expectations to just 10% of that figure. Lucid produced 8,428 vehicles in 2023, a revelation made at the company’s its fourth quarter and full year financial results on Wednesday.
The revised projection by Lucid comes as the EV industry grapples with a myriad of challenges, including high interest rates affecting consumer purchasing power and an increasingly competitive landscape. The revision also underscores the broader struggles within the EV sector, including supply chain disruptions and a pressing need to attract buyers amid economic headwinds.
In response to waning demand, Lucid has reportedly also implemented price cuts for its Air sedans, aiming to make its luxury vehicles more accessible to a broader audience. Despite these efforts, the company’s fourth-quarter revenue fell short of projections, with a reported $157.2 million against an expected $179.9 million. The financial results for 2023 further revealed a loss of $2.8 billion, highlighting the hurdles Lucid faces as it seeks to stabilize its financial standing and scale production.
Looking ahead, Lucid is banking on its upcoming Gravity SUV to invigorate sales and bolster its market position. CEO Peter Rawlinson has emphasized the significance of enhancing the company’s sales and marketing strategies, alongside the development of new models aimed at competing directly with market leaders like Tesla. Lucid’s plans include a mid-size platform targeted to launch no earlier than late 2026, with aspirations to capture a larger share of the EV market.
The broader EV market in the U.S. has seen similar challenges, with industry peers like Rivian also adjusting production forecasts downward in light of subdued demand and economic uncertainties. Rivian has recently announced to trim kits workforce by 10% amid slower EV sales.
