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The Markets
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The Markets
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Manufacturing & engineering

Tesla rival Lucid plagued with demand issues

Lucid delivered fewer cars than it produced in the three months to March

Luxury electric vehicle maker Lucid Group Inc (NASDAQ:LCID) has delivered fewer cars than it produced in the first quarter of 2023, hinting at demand struggles despite its effort to match price cuts by rival Tesla Inc (NASDAQ:TSLA).

2,314 vehicles were produced at Lucid’s facility in Arizona in the three months to March, the company said in a statement, though just 1,406 were delivered.

Due to report results on May 8, Lucid noted that “vehicle production and delivery numbers represent only one measure of the company's operating performance.

“[These] should not be relied on as sole indicators of quarterly financial results," it added.

Lucid estimated in February it would produce between 10,000 to 14,000 cars this year, significantly short of Wall Street's consensus for 21,800.

In 2022, Lucid’s first full year of production, 7,180 vehicles were produced, while just 4,369 were delivered.

Attempting to tempt buyers, the company slashed the price of its Lucid Air sedan by US$7,500 in early February, shadowing similar moves by Tesla and Ford Motor Company (NYSE:F).

Sweeping reductions to its workforce were then announced in late March, with 18% of its staff, 1,300 people, set to be laid off in a bid to cut costs.

Lucid shares were down 7.5% in premarket trading Friday in New York.

--Updates for share price--

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