Lucid (LCID) shares fall after bucking EV trend with Q2 production drop
Shares of American EV maker Lucid Motors (LCID) are falling Wednesday after reporting a drop in Q2 production. The decline is unexpected, especially considering many EV makers seeing growth in the second quarter.
Lucid shares are down after Q2 production decline
Despite several EV makers reporting record numbers in the second quarter, Lucid’s numbers continue to fall.
Lucid produced 2,173 electric vehicles at its manufacturing facility in Arizona in Q2, delivering 1,404 between April 1 and June 30, 2023.
Coming off its strongest production quarter in Q4 2022, the EV maker’s production numbers have now declined for the past two quarters.
After building 3,493 Lucid Air models in the fourth quarter, Lucid’s production slipped 33% to 2,314 units in Q1 2023 and now another 6% in Q2 to 2,173.
Lucid said after its Q4 earnings it was aiming to build between 10K and 14K models this year, falling significantly short of Wall St expectations upwards of 20K. With 4,487 EVs produced so far this year, Lucid will need to pick up the pace to hit its goals.
Deliveries have not held up much better. Lucid delivered 1,932 EVs in the fourth quarter, 1,406 in the first quarter of 2023, and 1,404 in Q2.
The company announced it has begun “material shipments to the Kingdom of Saudi Arabia.” Last month, the EV maker revealed it was raising around $3 billion through a public stock sale and a new investment from its majority shareholder, Saudi Arabia’s Public Investment Fund (PIF).
Lucid announced a long-term plan last February to bring EV manufacturing to the region with a new international facility aiming for 150,000 vehicle production annually.
More recently, Lucid may have found a new source of revenue to drive profits. The EV maker entered into a strategic tech partnership last month with Aston Martin to supply its proprietary EV tech.
The British sports car maker plans to use Lucid’s advanced tech to build a new EV platform to power “the world’s most thrilling and highly desirable electric performance cars.”
Lucid says the deal will help expand the reach of its products while “paving the way for more mainstream applications” in the future. Lucid’s CEO, Peter Rawlinson, even hinted at licensing its tech to a company to build an affordable (roughly $25K) EV.
Shares of Lucid are down over 10% following the Q2 production drop. EV stocks have been trending upwards the past few weeks, with EV makers like Tesla and Rivian crushing estimates and driving the sector higher. Even Mercedes-Benz’s electric vehicle deliveries surged over 600% in the US, driven mainly by its higher-end models.
Electrek’s Take
Does Lucid have a demand problem? The EV maker has been struggling to ramp production and deliveries all year with ongoing supply chain issues.
With competition from Tesla, Mercedes-Benz, and more, Lucid is struggling to find its place in the US market. Meanwhile, other EV makers, like Rivian, are turning the corner with a “healthy” supply chain and “robust backlog of preorders.”
We’ll learn more about the situation when Lucid drops its Q2 financial results on Monday, August 7, 2023.
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Hyundai is about to launch a new electric SUV in China. With its big debut coming up, Hyundai just dropped a sneak peek, and it looks like it could be the IONIQ 4. Check it out for yourself in the video below.
Is Hyundai teasing the IONIQ 4?
We caught our first glimpse of the new EV model last month after Beijing Hyundai released a few official “spy” photos.
Despite the camouflage, you can see a few design elements, like a light bar across the front, slim LED headlights, and a closed-off grille. At first, it almost looks like a smaller version of the IONIQ 9, Hyundai’s first three-row electric SUV, but with a much sportier, shaped profile.
Beijing Hyundai released a new teaser for the upcoming electric SUV this week. The video shows “a wave of high-end operations” as the vehicle dances across the snow.
The video highlights features like real-time torque control, high-speed cornering, and the SUV’s impressive body control while driving around cones.
Hyundai’s new electric SUV is being called “OE” internally, according to The Korean Car Blog, suggesting it could be an IONIQ model.
All other Hyundai IONIQ EV models were also codenamed with an “E” internally, which is raising speculation that this could be the IONIQ 4.
Like most global OEMs, Hyundai is fighting to compete in an intense Chinese EV market, which is dominated by domestic automakers like BYD.
Hyundai opened its first overseas R&D center last year in China to spearhead its comeback. It will work with local suppliers and tech companies to develop EVs designed for Chinese buyers. The new electric SUV is expected to launch in China later this year, followed by three new energy vehicles, including EVs and EREVs.
Beijing Hyundai will release more information on April 16, with the electric SUV set to “challenge the limit of driving performance.”
What do you think of Hyundai’s new electric SUV? Is this the IONIQ 4? Let us know your thoughts in the comments.
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Charge point provider char.gy has secured a £130 million contract to install 6,000 curbside EV chargers for Brighton and Hove City Council (BHCC) – the UK’s largest installation of its kind.
London-based char.gy has also been awarded a 15-year contract to operate and maintain the charging network.
Installing Level 2 chargers curbside, where most drivers in the UK park, will enable more people to take advantage of cheaper charging rates while juicing up their EVs overnight. (charg.gy’s pay as you go night tariff, between midnight and 7 am, is £0.39/kWh, compared to its £0.59/kWh day tariff.)
John Lewis, chief executive of char.gy, said the project is “a huge moment for the UK and its EV ambitions. This partnership alone will empower thousands of residents to confidently make the switch to electric vehicles, knowing they have easy access to chargers.”
Brighton and Hove City Council is among the first to tap into the government’s Local EV Infrastructure (LEVI) Fund, designed to help English local authorities roll out charging solutions for residents without off-street parking. Future of Roads Minister Lilian Greenwood said making EV charging as accessible as possible is “crucial to making the switch to electric a success.”
The UK now has over 75,000 public EV chargers, according to the Department for Transport—and it looks like the country’s on pace to hit its 2030 target. Back in December, the National Audit Office said the rollout is “on track” to meet the DfT’s estimate that at least 300,000 chargers will be needed by the end of the decade.
Read more: Meet the UK’s largest solar + storage EV charging ‘Superhub’
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