Lucid finished Q4 of 2022 strong, but still faces challenges

Electric Vehicle newcomer Lucid announced it had beaten last year’s production target thanks to a strong performance in Q4 of 2022.

The automaker’s revised manufacturing target was 7,000 units, a number which it surpassed by 180. Over half of this total was completed in 2022’s fourth quarter. The brand made the announcement in a press release, published last Thursday.

However, the encouraging news is still overshadowed by the challenges the brand encounters last year, arising from supply chain disruptions, strains on consumer finances and materials shortages. Originally, the company had aimed to build 20,000 new vehicles by Q4 of 2022, but was forced to continually adjust as it became clear that this goal was too ambitious. Its 7,180 total is just over a third of this amount.

In addition to its production issues, the brand has also only sold just over half of the cars it built last year. EVs were one of the few products on the market to see growth, with many brands reporting record sales in 2022’s fourth quarter. This is thanks to an industry-wide push to bring cheaper models to the public, partly to initiate their plans to phase out gas-powered cars, and partly to combat the dominance of Tesla. Although its relatively low sales could simply be a brand recognition issue, it still indicates the automaker faces an uphill battle on its way to becoming profitable.

Nevertheless, Lucid’s rebound in Q4 of 2022 is good news for the auto industry as a whole. Low production was one of the key contributors to last year’s high prices, an issues which caused many would-be customers to hold onto their current vehicles. With manufacturing efforts improving, dealership inventory should grow as well, driving prices down. Furthermore, thanks to the Biden Administration’s $7,500 EV tax credits, many Americans that had previously waited on a new car purchase may be persuaded to change their mind in 2023.

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