Lucid Group

Main Article: Electric Vehicles (Global Market)

Performance indicators

2023: Losses - $2.83 billion

At the end of 2023, the American electric car manufacturer Lucid showed net losses of $2.83 billion. For comparison, a year earlier, losses amounted to $1.3 billion. Thus, on an annualized basis, losses more than doubled. This is stated in the financial report published on February 21, 2024.

Lucid revenue in 2023 was recorded at $595.27 million. This is approximately 2% less than the result for 2022, when sales were estimated at $608.18 million. Company CEO Peter Rawlinson said Lucid continues to invest in technology development, manufacturing development and expanding partnerships to strengthen its position in the premium electric vehicle segment. The efforts are aimed at ensuring sustainable growth in the long term.

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Lucid Motors

During 2023, Lucid produced 8,428 vehicles, matching the upper end of its planned range of 8,000 to 8,500 vehicles. At the same time, in fact, 6001 cars were delivered per year. In 2024, production of electric vehicles should increase: Lucid expects about 9,000 cars to come off the assembly line.

In 2023, we entered into our first strategic technology agreement, increased market share, and introduced electric vehicles of the Gravity family. Now we're entering the next phase of transforming Lucid's vehicle range with an eye toward driving business growth, "Rawlinson says.

The published report said that at the end of 2023, Lucid's research and development costs reached $937.01 million. For comparison, a year earlier this figure was $821.51 million. Approximately $24.55 million went to expenses related to restructuring.^[1]

History

2024: Dismissal of 6% of employees

On May 24, 2024, the American electric car manufacturer Lucid announced a reorganization that would reduce the number of personnel by about 6%. This measure is aimed at reducing costs against the background of losses.

Like other electric car manufacturers, Lucid has faced declining demand. The difficult macroeconomic environment, inflation and high interest rates are encouraging consumers to plan spending more carefully. Many buyers, previously eyeing all-electric cars, end up opting for less expensive hybrids. In such a situation, Lucid is forced to optimize costs.

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Lucid Motors

A total of about 400 people will reportedly be laid off. The cuts will affect positions at all levels, including managers and middle managers. As of December 2023, the company employed approximately 6,500 full-time employees worldwide. Lucid expects to incur between $21 million and $25 million in reorganization-related costs. These are, in particular, monetary compensation for dismissed employees. The process is planned to be completed by the end of the third quarter of 2024.

We optimize our resources in a way that ensures our success and growth opportunities in the future. In the current situation, we are focusing on achieving our goals, "said Lucid CEO Peter Rawlinson, commenting on the restructuring.

Lucid, as noted, forecasts higher capital expenditures for 2024, which is due to the expansion of production facilities in Arizona and the construction of a new plant in Saudi Arabia. At the end of 2026, the company expects to begin production of a "more affordable" mid-size electric car.^[2]

2023:18% staff cut

On March 28, 2023, Lucid, an American manufacturer of premium electric vehicles, announced its intention to carry out a restructuring, during which the number of personnel will decrease by about 18%.

The staff will be reduced by approximately 1300 employees. The layoffs will affect various divisions and will affect, among other things, employees in senior positions. The reorganization is planned to be completed by the end of the second quarter of 2023. In connection with this initiative, Lucid may suffer losses in the amount of $24- $30 million: the funds will be used to pay severance pay, as well as for remuneration and compensation. CEO Peter Rawlinson noted that the restructuring is dictated by the need to improve efficiency and changed business needs. Lucid had already taken steps to reduce costs, he said, but that was not enough to avoid downsizing.

Lucid Air

We made the painful but necessary decision to lay off some of our talented employees. We are also taking ongoing cost optimization measures by reviewing all non-critical items of expenditure, "Rawlinson wrote in an email sent to the corporate network.

In general, the reorganization is designed to make the company "more stable and flexible" and strengthen its market position in the long term. Lucid has confirmed its intention to release the luxury electric crossover Gravity in 2024. At the same time, the company emphasizes that it may incur additional costs in connection with unforeseen events. For example, at the end of March 2023, Lucid recalled more than 600 Lucid Air electric sedans due to a problem that could lead to power loss. In certain situations, this increases the risk of a traffic accident.^[3]

2022: Saudi Arabia to buy up to 100,000 Lucid electric vehicles within 10 years

In April 2022, it was announced that Saudi Arabia will acquire from 50 thousand to 100 thousand electric vehicles manufactured by the American Lucid Group Inc. over the next decade. Thus, the authorities will support the automaker, whose investor is the kingdom's sovereign wealth fund Public Investment Fund (PIF).

The government explained its decision by the desire to change cars in its fleet for greener ones, writes The Wall Street Journal. Lucid was chosen for this purpose due to the fact that the company is building its own enterprise in Saudi Arabia, which will be its first foreign plant. The automaker plans to produce 150 thousand cars in the kingdom per year.

As reported, Lucid promised to build an enterprise in Saudi Arabia when it raised $1 billion in funding from PIF in 2018.

2021

Going public on Nasdaq

On July 26, 2021, Lucid Motors officially became a public company, listing its shares on the Nasdaq exchange under the ticker symbol LCID. The listing was carried out not through a traditional IPO, but through a merger with the SPAC company Churchill Capital Corp IV, which was formalized on July 23. The combined company was named Lucid Group.

As of 19:00 Moscow time on August 4, 2021, the value of one Lucid share is $23.1 (the price at the time of the start of trading is $26.79), which is 2% less than a year earlier. The company's market capitalization is $37.33 billion. Thanks to the placement of its shares on the stock exchange, the company earned about $4.5 billion, despite the fact that at the time of listing it had not released a single commercial product.

Electric car manufacturer Lucid Motors goes public

Having received investments, the electric car manufacturer will focus on increasing production and bringing its products to the roads, where it will face fierce competition with Tesla, Mercedes-Benz and other brands of expensive premium electric vehicles. Lucid Motors says it plans to begin deliveries of its Lucid Air luxury sedan, which previously started production at the Arizona plant, before the end of 2021. The Gravity electric SUV is also in development by August 2021.

In an interview with Bloomberg, the CEO of the company, Peter Rawlinson, a native of Tesla, noted that Lucid Air is a car for those who believe in Tesla technologies, but at the same time do not want to abandon the S-class for the sake of Model S. After going public, the manufacturer said that 11 thousand paid applications for the acquisition of Lucid Air in different trim levels. According to the developers, the electric car will be able to drive about 800 km without recharging, which exceeds the performance of Tesla cars. Lucid was forced to delay car production due to lack of funding.^[4]

Delays in the start of sales of the Air model

In May 2021, Lucid Motors Inc., a Saudi-funded electric vehicle start-up, is nearing its debut electric vehicle, an Air sedan worth 169,000, dollars but has been struggling with supply chain disruptions, semiconductor shortages and restrictions. Covid-19

SPAC deal with Churchill Capital Corp IV

Lucid is part of a wave of EV startups that have decided to go public through SPAC, hoping to accelerate the fight against electric vehicle market leader Tesla Inc.

In February, the company announced a deal with Churchill Capital Corp IV that would generate 4.4 billion in dollars cash. The reverse merger was Lucid's State biggest capital injection since Saudi Arabia's investment fund invested more than $1 billion in 2018.

2020

Announcement of the first electric car Air

In September 2020, Lucid unveiled its first production electric car, the Air, a competitor to Tesla. The company expects to begin production in 2020 in Arizona. Cars will cost from $80,000.

Lucid is going to compete, first of all, with Model S. In an interview with Bloomberg, CEO Peter Rawlinson, a native of Tesla, noted:

"Lucid Air is a car for those who have a Mercedes S-Class and who believe in the technology Tesla offers, but also do not want to abandon the S-Class for the sake of the Model S."

Lucid expects to repeat Tesla's strategy and first sell a large number of expensive cars in order to make money on the production of more affordable models.

Construction of electric car plant

At the end of May 2020, it became known that Lucid Motors, founded by ex-employees, Tesla built a production plant electric vehicles and is preparing to enter the market.

The company is located 80 kilometers southeast of Phoenix, the largest city in Arizona. Its area was 6.7 hectares. If all goes according to plan, a new Lucid Air electric sedan will leave the plant by the end of 2020, with worldwide sales scheduled for 2021. Its cost will be about $100 thousand.

Ex-Tesla employees build electric car factory and prepare to compete with Musk

In 2018, Lucid received a $1 billion investment from the Saudi State Investment Fund, which allowed it to launch the Air Sedan, its first model. Thanks to the support of the UAE, the construction of the plant continued on schedule even at a time when other automakers were forced to postpone the release of new models due to the coronavirus pandemic.

Lucid Motors executives say that through a number of logistical maneuvers and the help of parts suppliers, they have been able to install critical assembly line equipment, such as robotic manipulators and stamping presses. In addition, the company was lucky with the location of the plant - the Arizona authorities did not prohibit construction work during the pandemic, unlike the rest of the United States. Not without delays, but in general, the company managed to resolve the issue of equipment supplies on time.

Lucid Motors said it has recruited 120 new employees since mid-March and opened an additional 250 new jobs. The company plans to start with the production of tens of thousands of cars in 2021, but over time it should reach the production of 380 thousand units per year, that is, overtake Tesla in terms of production capacity.^[5]

Notes