Lucid surpassed expectations for their fourth-quarter deliveries. Initially projected to deliver 2,637 vehicles, the company delivered 3,099 instead. These results were an 11% increase from Q3 results and 78% higher compared to Q4 in 2023.
Lucid’s production in 2024 increased by 7%, with 9,029 vehicles produced, surpassing a target of 9,000. Overall, deliveries for the year grew by 71%, reaching 10,241 vehicles.
Price cuts and cheaper financing options sparked consumer demands, helping to attract more customers and stimulate sales. The automaker is also diversifying its portfolio to better compete with Tesla and Rivian by launching its first SUV, the Gravity.
Despite the overall delivery gains, Lucid is still in a precarious financial situation. Its stocks were down approximately 28% in 2024. To address consumer affordability concerns, Lucid slashed the prices of its Air Sedan. While the price cuts have stimulated sales, the company is losing tens of thousands of dollars per vehicle.
In addition, with the incoming Trump administration and the inevitable elimination of the federal EV tax credit, the demand for electric vehicles may slow down.
Lucid has reduced its workforce to regain control and is currently “in talks” with several OEM automakers to form a strategic partnership.
Despite the mounting challenges ahead, Lucid’s strong delivery performance boosted its shares by 3%, revealing budding hope and confidence in investors. However, automaker’s reliance on price cuts may do more harm than good in the long run.
