Lucid Air production plummeted in Q3
Lucid Motors initially planned to build 10,000 cars in fiscal year 2023, but early Q3 2023 data published by Lucid today would seem to put that figure in serious jeopardy — if not make it an outright impossibility.
Lucid produced 1,550 cars during Q3 2023, a huge 28.7% drop from the 2,173 cars it produced in the previous quarter. Meanwhile, the company delivered 1,457 cars, a very slight increase over the 1,404 it delivered in Q2 — but that means it’s still accumulating costly inventory. Financial results for Q3 2023 won’t be available until November 7.
With today’s figures, Lucid is nearly 4,000 cars short of its 10,000 unit goal for FY 2023, a number it seems extremely unlikely to make up with Q4 production alone. Lucid’s press release makes no mention of that 10,000 unit figure. This probably shouldn’t be taken as a great sign of its ongoing commitment to those statements.
Lucid has had a tough time moving vehicles — while the Air sedan has received a high degree of praise from the automotive press for its design, execution, and performance, it’s a very expensive car. And with the US consumer economy in a shaky state, luxury purchases like high-end EVs are probably getting put off by a large number of would-be buyers.
Lucid notes in its release that 700 in-progress Airs are on the way to Saudi Arabia for final assembly, suggesting that its Q4 delivery numbers could be aided by international sales. Lucid announced it was now eligible for Saudi economic incentives as part of a special economic zone initiative last month.
Here’s Lucid’s release on the figures.
NEWARK, Calif., Oct. 17, 2023 /PRNewswire/ — Lucid Group, Inc. (NASDAQ: LCID), setting new standards for luxury electric experience with the Lucid Air, winner of the 2023 World Luxury Car Award, today announced production and delivery totals for the quarter ended September 30, 2023. Lucid produced 1,550 vehicles during Q3, plus over 700 additional vehicles in transit to Saudi Arabia for final assembly. The company delivered 1,457 vehicles during the same period.*
Lucid motors
Electrek’s Take
This is not good news for Lucid Motors. Everyone in the space knows that the company is struggling to sell through stock, and even with drastically lowered Q3 production, it’s still net-positive on its total vehicle inventory. Sitting on cars is an expensive problem to have, and one that compounds when consumers sense there’s something keeping those cars available — often, something they perceive as undesirable.
Lucid may not be catching any breaks from larger economic headwinds, but its decision to launch its brand on a sedan platform in SUV-crazy America is probably the bigger strategic miss overall. It’s hard to imagine Lucid would be in this position if it was selling a 5- or 7-seat luxury crossover. The company’s Gravity SUV is set to arrive in 2024, and it can’t come soon enough.
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Chevron is not seeing signs that the U.S. is close to a recession even as President Donald Trump’s tariffs weigh on expectations for oil demand, CEO Mike Wirth said Tuesday.
“There’s no signs that we see at this point that we are in or close to a recession,” Wirth told CNBC’s “Squawk Box.” “There are signs that growth may be slowing and we have to always be prepared for that.”
The International Monetary Fund on Monday cut its growth outlook for the U.S. this year to 1.8%, down from 2.7% previously.
The oil market is expecting reduced demand as a consequence of Trump’s tariffs and the decision by OPEC+ increase production faster than expected, Wirth said. Chevron isn’t changing its capital spending plans in response to drop in prices, the CEO said.
U.S. crude oil prices have fallen about 11% since Trump announced his tariffs on April 2. West Texas Intermediate was last up about 72 cents at $63.80 per barrel. OPEC and the International Energy Agency have cut their demand outlooks for this year.
Wirth said U.S. onshore oil production in patches like the Permian Basin is likely to pull back if prices hit $60 per barrel. Offshore production likely won’t be affected, he said.
“That’s an area where if we were to be at a $60 price or even lower you’re likely to see activity pull back in this sector and you’ll see the production response over a few months,” Wirth said. “That’s what we should watch, not so much the deep water activity.”
Chevron is not expecting a major direct impact on its business from Trump’s tariffs as energy has largely been exempt from the levies, Wirth said.
“The effects that we feel are likely to be more the macroeconomic effects as they flow through the economy,” Wirth said. “The bigger issues would be what would it mean for growth, and global trade and how does that evolve.”
Executives at oil and gas companies were scathing in their criticism of Trump’s tariffs in an anonymous March survey by the Federal Reserve Bank of Dallas, warning that steel tariffs were raising their costs and low prices could impact their activity.
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Little is known about super-secretive EV startup Slate, but the fledgling brand is rumored to be backed by Jeff Bezos and determined to shake up the existing electric order with an affordable lineup of compact SUVs and pickups with that golden $25,000 price tag.
Now, at least, we know what it’s gonna look like. The battle of the billionaires is on!
Redditor jonjopop over at the spotted subreddit spotted what looks like an early prototype of an unbranded SUV with bizarre “CryShare” wrap. CryShare, as a concept, seems to combine the functionality of a ride sharing app like Uber or Lyft with the familiar (to parent, anyway) idea that small babies will often sleep better in a moving car than in their own cribs … but that’s not what’s important here.
Instead, focus on the vehicle itself – parked on Abbot Kinney Boulevard in Los Angeles without explanation or fanfare, this is our best look yet at the kind of vehicle(s) Slate is likely to reveal in the coming days.
Stumbled upon the Bezosmobile [Slate Automotive…idk?] being revealed with an absolutely bizarre marketing campaign
byu/jonjopop inspotted
Other local automotive journalists caught wind of the public unveiling, too – and our friends at The Autopian (Hi, Matt!) sent their own David Tracy out on the streets of LA to check it out. Tracy took the following video and posted it to Instagram.
The Slate breaking cover and causing buzz just ahead of what’s sure to be a painful Q1 earnings call for Tesla is a masterstroke of marketing – especially as doubts surrounding the viability of a “less expensive” Tesla Model Y or Model 3 continue to mount amid the uncertainty of Trump’s tariffs and declining sales of the brand’s more profitable models both at home and abroad.
As with so much involving Slate, however, there is nothing here written in stone – or even cast in cheese. Nothing has been announced, nothing is promised, and for all we know this might have more to do with the affordable Rivian brand launch, a new BYD, or be a viral marketing bit from some local Art Center design student in (relatively) nearby Pasadena. In fact, about the only thing I think we can say about Bezos (?) new Slate project with confidence today is this: Elon could probably use that drink.
SOURCES | IMAGES: Reddit, The Autopian.
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