Lucid Motors is optimistic that its latest electric vehicle (EV), the Gravity SUV, will significantly improve its profit margins in response to investor pressure.
Lucid’s shares are down approximately 40 percent as the demand for electric vehicles (EVs) has been sluggish. As the stakes continue to rise, the automaker is relying on the Gravity to generate higher sales volumes to reduce the company’s losses.
The automaker went public in mid-2021 and has struggled to raise awareness and garner customer demand despite securing significant shareholder investments.
The Gravity is Lucid’s second vehicle to hit the market, following their Air Sedan, released in 2021 and selling in small quantities. Year to date, the automaker sold 7,142 Air sedans, which topped its 6,000 deliveries in 2023.
Despite pressure from investors, Lucid’s CEO, Peter Rawlinson, is positive that the Gravity SUV will be a hit. In an interview with CNBC, he said, “I’m very confident we’ll enjoy a significant step change in demand for our products, our complete product portfolio… We believe there’s about a 6-to-1 ratio… for the SUV over the sedan, and that’s going to put us in a very strong position.”
If the automaker’s prediction is correct, a sixfold increase in sales could significantly help the company regain lost revenue. The company expects customer demand to outpace production as it frantically works to ramp up manufacturing at its Arizona plant and build a new plant in Saudi Arabia.
Lucid is still working to finalize their self-certified federal crash testing and range testing from the Environmental Protection Agency (EPA) and the California Air Resources Board.
Gravity’s initial model, the Grand Touring, will be available for ordering on Lucid’s website on November 7. However, it’s not yet known when customers can expect delivery. The SUV will retail for $94,900 and may qualify for some incentives.
