Lucid Motors exceeded market expectations for third-quarter deliveries, reporting a total of 2,781 vehicles handed over by September 30, surpassing analysts’ estimates of 2,242. This boost in demand, driven by discounts and more affordable financing options, helped the luxury electric vehicle (EV) maker navigate a challenging economic environment. As a result, shares of Lucid rose by approximately 1.5%.
Despite the delivery success, Lucid’s production numbers dropped sequentially, with 1,805 vehicles manufactured in Q3 compared to 2,110 in the previous quarter. Senior equity analyst Andres Sheppard from Cantor Fitzgerald attributed this decline to the company clearing out existing inventory. Looking forward, Lucid is banking on its upcoming Gravity SUV, which is expected to enter production later this year to drive growth. However, it faces stiff competition from Tesla’s Model X and Rivian’s flagship R1 models.
Industry-wide, demand for EVs in the U.S. has been softening due to high interest rates and the availability of more affordable hybrid alternatives. Companies like Tesla, Rivian, and Lucid have slashed prices and offered incentives to attract buyers.
Analysts are cautious about Lucid’s outlook, with CFRA Research’s Garrett Nelson noting that the company will face challenges in hitting its 2024 production guidance of 9,000 units. Meanwhile, Rivian and Tesla have both missed quarterly delivery estimates, with Rivian slashing its annual production forecast due to weak demand and a parts shortage.
Lucid continues strengthening its financial position, securing up to $1.5 billion in cash from its largest shareholder, Saudi Arabia’s Public Investment Fund, in August. The funds are expected to help Lucid ramp up production and introduce a new mid-size vehicle, planned for release in late 2026.
