Lucid (LCID) cuts 2023 EV production target as operating losses widen in Q3
Lucid Motors (LCID) is cutting its 2023 production goal following widening losses in Q3. The EV maker is facing stiff competition in the premium electric vehicle market.
Despite initial plans to build between 10,000 and 14,000 cars this year, Lucid is revising its plans as EV sales fail to gain traction.
Lucid delivered 1,456 EVs in Q3, up slightly from 1,404 in the second quarter. Deliveries have fallen from a peak of 1,932 in the fourth quarter of 2022.
Production is also down, slipping over 50% from a peak of 3,493 during the fourth quarter of 2022 to just 1,550 in Q3.
Lucid said earlier this year it would likely hit the lower end of its production goal. However, the EV maker adjusted its outlook lower following its Q3 earnings results.
The company now expects to build between 8,000 and 8,500 vehicles this year. That’s over 40% lower than its higher-end target from the fourth quarter.
Lucid cuts EV production goal amid widening losses
“We recognize we still have work to do on our customer journey and deliveries,” explained Lucid CEO Peter Rawlinson.
Lucid reported Q3 revenue of $137.8 million, down from $195.5 million last year. As a result of the lower output, Lucid’s operating losses widened to $752.9 million, up from $687.5 million last year.
The EV makers’ net loss grew to $630.9 million in Q3. Lucid’s losses reached $2.17 billion through the first nine months of the year.
Lucid lost around $433,000 on every electric vehicle it delivered in the third quarter.
Lucid’s CFO, Sherry House, explained, “We’ve also made progress with the cost control program we implemented in the first half of the year and have identified further opportunities for 2024.”
The company ended the quarter with $5.45 billion in liquidity, which “we expect to lead us to our next major milestone, Gravity production, and beyond, into 2025,” according to House.
To boost demand, Lucid slashed prices on its Air electric sedans by up to $12,000 earlier this year.
Lucid is bolstering its lineup to expand its market. The EV maker began delivering its Tesla Model S Plaid rival Lucid Air Sapphire during the quarter.
Its first electric SUV, the Lucid Gravity, will be revealed at the LA Auto Show next week. Rawlinson said the Gravity will “redefine the electric SUV,” adding that production remains on track to begin in late 2024.
Lucid stock is down around 5% following its Q3 earnings and production announcement. Share prices are down roughly 69% over the past 12 months.
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Tesla’s Q2 results are in, and they are way, way down from Q2 of 2024. At the same time, Nissan seems to be in serious trouble and the first-ever all-electric Dodge muscle car is getting recalled because its dumb engine noises are the wrong kind of dumb engine noises. All this and more on today’s deeply troubled episode of Quick Charge!
We’ve also got an awesome article from Micah Toll about a hitherto unexplored genre of electric lawn equipment, a $440 million mining equipment deal, and a list of incompetent, corrupt, and stupid politicians who voted away their constituents’ futures to line their pockets.
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OpenAI is distancing itself from Robinhood‘s latest crypto push after the trading platform began offering tokenized shares of OpenAI and SpaceX to users in Europe.
“These ‘OpenAI tokens’ are not OpenAI equity,” OpenAI wrote on X. “We did not partner with Robinhood, were not involved in this, and do not endorse it.”
The company said that “any transfer of OpenAI equity requires our approval — we did not approve any transfer,” and warned users to “please be careful.”
Robinhood announced the launch Monday from Cannes, France, as part of a broader product showcase focused on tokenized equities, staking, and a new blockchain infrastructure play. The company’s stock surged above $100 to hit a new all-time high following the news.
“These tokens give retail investors indirect exposure to private markets, opening up access, and are enabled by Robinhood’s ownership stake in a special purpose vehicle,” a Robinhood spokesperson said in response to the OpenAI post.
Robinhood offered 5 euros worth of OpenAI and SpaceX tokens to eligible EU users who signed up to trade stock tokens by July 7. The assets are issued under the EU’s looser investor restrictions via Robinhood’s crypto platform.
“This is about expanding access,” said Johann Kerbrat, Robinhood’s SVP and GM of crypto. “The goal with tokenization is to let anyone participate in this economy.”
The episode highlights the dynamic between crypto platforms seeking to democratize access to financial products and the companies whose names and equity are being represented on-chain
U.S. users cannot access these tokens due to regulatory restrictions.
Despite the warnings, BYD continues introducing new discounts. On Wednesday, BYD’s luxury off-road brand began offering over 50% Huawei’s smart driving tech.
BYD introduces new discounts on smart driving tech
After BYD cut prices again in May, the China Automobile Manufacturers Association (CAMA) warned that the ultra-low prices are “triggering a new round of price war panic.”
Although they didn’t single out BYD, it was pretty obvious. BYD slashed prices across 22 of its vehicles by up to 34%, triggering several automakers to follow suit in China.
BYD’s cheapest EV, the Seagull, typically starts at about $10,000 (66,800 yuan). After the price cuts, the Seagull is listed at under $8,000 (55,800 yuan).
It doesn’t look like China’s EV leader plans to slow down anytime soon. Fang Cheng Bao, BYD’s luxury off-road brand, introduced new discounts on Huawei’s smart driving tech on Wednesday.
The limited-time offer cuts the price of Huawei’s Qiankun Intelligent Driving High-end Function Package to just 12,000 yuan ($1,700).
Buyers who order the smart driving tech in July will save over 50% compared to its typical price of 32,000 yuan ($4,500).
Earlier this year, Fang Chang Bao launched the Tai 3, its most affordable vehicle, starting at 139,800 yuan ($19,300). The Tai 3 is about the size of the Tesla Model Y, but costs about half as much.
The Tai 3 will spearhead a new sub-brand of electric SUVs following the more premium Bao 8 and Bao 5 hybrid SUVs.
BYD’s luxury off-road brand sold 18,903 vehicles last month, up 50% from May and 605% compared to last year. Fang Cheng Bao has now sold over 10,000 vehicles for three consecutive months.
The Chinese EV giant sold 382,585 vehicles in total in June, an increase of 12% from last year. In the first half of the year, BYD’s cumulative sales reached over 2.1 million, a YOY increase of 33%.
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