Lucid (LCID) is the latest EV maker to reveal job cuts to reduce costs. As part of a new restructuring plan, Lucid plans to reduce its US workforce by 6%, or about 400 employees.
Lucid cuts workforce amid new restructuring plan
In an 8-K filing Friday, Lucid announced a new restructuring plan, which includes cutting around 400 jobs.
CEO Peter Rawlinson emailed employees on May 24, 2024, explaining the new job cuts amid plans to restructure its US and contract workforce. Rawlinson said the reduction will “not impact our hourly manufacturing and logistics workforce.”
However, it will impact “employees at all levels, including leadership and mid-level management.”
The job cuts amount to about 6% of Lucid’s US workforce. Lucid expects to complete the new plan by the end of Q3 2024.
Under the new plan, which mainly consists of severance payments, employee benefits, and stock-based compensation, Lucid expects around $21 to $25 million in charges. About $19 to $23 million will be primarily reported in Q2, with most of the charges expected to be paid by the end of Q3 2024.
Lucid expects most of the expenses to be cash expenditures. Meanwhile, changes to stock-based compensation are “not expected to be material,” according to Lucid.
Rawlinson explained that “letting go of our talented team members is difficult and a decision we did not take lightly” and thanked everyone who had helped the company grow.
The news comes ahead of what could be Lucid’s most important model yet. Lucid is set to launch production of its first electric SUV, the Gravity, by the end of the year. Lucid’s CEO said, “I’m confident Lucid will deliver the world’s best SUV and dramatically expand our total addressable market.”
Since the program is still losing money, “we must remain vigilant about costs.” He stressed, “Today’s decision is about positioning us for future growth.”
Lucid set a new delivery record in the first quarter and is seeing the momentum continue into Q2. Rawlinson boasted, “I want to stress that the future is bright at Lucid.”
The news comes after several rivals, including Rivian, reduced their workforces in an effort to increase profits.
Lucid’s stock is down around 4% following the news. LCID shares are now down over 65% over the past 12 months.
Electrek’s Take
Lucid generated $172.7 million in revenue in Q1, up from $149.4 million a year ago. Meanwhile, the EV maker reduced operational losses ($729.9 million vs $772.2 million) as it looks toward its next growth stage.
The Gravity is expected to open up new markets for Lucid, significantly expanding its addressable market.
With another $1 billion investment from Saudi Arabia’s Public Investment Fund (PIF), Lucid ended the quarter with over $5 billion in liquidity.
Lucid expects to build around 9,000 vehicles this year, nearly the same as the 8,428 units made in 2023. Following the Gravity, Lucid plans to launch a new mid-size electric SUV that will expand its market drastically.
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Kia’s upcoming entry-level EV has finally made its way to the famous Nurburgring for testing. The EV4 hatch was spotted ripping across the track, nearly on two wheels at one point, as Kia preps for its big debut.
According to Kia, the EV4 is “an entirely new type of EV sedan. ” It was first unveiled last October during Kia’s first annual EV Day, alongside the EV3 and EV5 as part of its new low-cost lineup.
The EV5 launched in China last year, while the EV3 is already rolling out in Korea and Europe. Next up, we will finally see the production version of the EV4.
Although its four-door format suggests it’s a sedan, Kia said the EV4’s bold design is a symbol of the company’s innovation. Its low nose, long-tail silhouette, and added roof spoiler give it an almost racecar-like feel.
With its official debut approaching, Kia’s EV4 has been spotted out in the wild several times. Last week, it was caught testing in the US for the first time.
A hatchback model has also been spotted. It was first caught on European roads this summer and in the US earlier this month.
Kia EV4 hatch takes on the Nurburgring as debut looms
After the EV4 was spotted racing across the Nurburgring for the first time, we are getting our best look yet at the upcoming Kia model.
The video from CarSpyMedia shows the EV4 hatch carving up sections of the track. Several times, you can see the EV4 is being pushed to the limits, nearly going up on two wheels.
However, with a low center of gravity and likely added stabilization tech, the EV4 appears to handle it with ease. You can also see the difference between the sedan model and the hatchback, with the bulky backside.
As it takes on the track, it almost looks like the 576 hp EV6 GT, Kia’s fastest and most powerful car. At least for now.
Kia is expected to officially reveal the EV4 by the end of the year, with deliveries starting in 2025. Prices are expected to be in the $30,000 to $40,000 range. The hatchback model is likely aimed at Europe, but it could also find a market in the US as buyers drift toward more efficient options.
Ahead of the LA Auto Show later this week, Kia is teasing five new vehicles for the US, at least one being an EV. Will it be the EV4? EV3?
Source: CarSpyMedia
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Elon Musk is hinting at Tesla making bigger electric cars, but you shouldn’t hold your breath as it’s not the first time he said that.
In the last few hours, Musk responded to two fans on X, asking Tesla to build bigger vehicles to support larger families.
Musk often promotes the idea of having bigger families as he is afraid of declining populations due to low birth rates in some countries.
With the first one, the CEO responded with a simple “OK,” and with the other, he elaborated a bit more by referencing the recently unveiled Tesla Robovan and “some other things”:
Musk appears to be hinting at Tesla’s work on a bigger electric vehicle that has yet to be unveiled.
While interesting, it’s hard to give too much weight to the comment, considering Musk claimed that Tesla has been working on a higher passenger capacity vehicle for years.
A “high passenger-density urban transport” vehicle has been in Tesla’s official product roadmap since 2016 and has yet to be unveiled, unless you count the Robovan unveiled last month, but that’s completely attached to Tesla’s self-driving effort as the vehicle has no steering wheel or pedals.
As part of Tesla’s shift toward autonomous driving, the automaker has pulled back plans for several new electric vehicle programs in favor of those without any driver inputs, like Cybercab and Robotvan.
Tesla is expected to soon unveil two new vehicles to be launch next year, but those are based on the Model 3 and Model Y and therefore, they aren’t likely to be bigger vehicles.
Electrek’s Take
Like most things Elon says lately, it goes in my “I’ll believe it when I see it” folder.
That said, I think an electric van that can be configured for cargo, camper, or passenger, would make a ton of sense in Tesla’s vehicle lineup.
Of course, it’s harder to get the greenlight for a vehicle program like that if your CEO is perpetually convinced that the company is on the verge of achieving self-driving and making steering wheels obsolete.
I’m more of the opinion that Tesla should have played it more careful and continue working on growing its human-driveable EV lineup while working on self-driving.
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Penske Truck Leasing is rolling out rooftop solar on its US truck leasing, rental, and maintenance buildings, starting in Illinois.
Penske Truck Leasing, which offers an electric truck fleet leasing program, wants to cut emissions and save energy, so it’s activated its first rooftop solar system at its new facility in Channahon, Illinois (pictured). The 200 kW system is expected to generate about 80% of the building’s energy needs, and the rest will be supplied by the local utility.
The next Penske Truck Leasing rooftop solar system to come online will be in Grand Rapids, Michigan, “in the coming months,” followed by another in Linden, New Jersey, in 2025. All three of these new buildings are part of Penske’s LEED building program, which is designed to reduce energy use and promote sustainability.
Seven of Penske’s existing facilities in California will also get solar retrofits. These locations, which include Fresno, Hayward, La Mirada, National City, Riverside, San Diego, and San Leandro, are expected to generate about 600 kW of renewable energy in total.
Penske has teamed up with Sunrock Distributed Generation under a power purchase agreement to make the California upgrades happen. The company is also working with ForeFront Power, based in San Francisco, as its lead consultant for the solar rollout.
On average, these solar-powered Penske facilities will generate around 1 million kWh of renewable energy each year, preventing about 442 metric tons of CO2 emissions annually. That’s equivalent to the amount of energy needed to power nearly 90 homes for a year.
Drew Cullen, senior vice president of fuels and facility services at Penske, highlighted the significance of this move, noting:
Our solar program is an important piece of our renewable energy strategy, and ForeFront Power continues to be an outstanding partner in helping us bring these projects to fruition.
These investments will allow us to directly generate our own renewable energy to power our locations and continue to support our customers with sustainable solutions.
Penske Truck Leasing, part of Penske Transportation Solutions, is headquartered in Reading, Pennsylvania, and operates over 437,000 vehicles across North America, with nearly 1,000 maintenance facilities and more than 2,500 rental locations. Its investment in solar power is a key part of its broader sustainability strategy to cut emissions and reduce reliance on traditional energy sources.
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