Lucid Motors, seen as Tesla's rival, has made an assertive entry into the electric vehicle market. However, the company's latest financial reports revealed that it suffered huge losses. Lucid Motors lost an average of 433 thousand dollars on each vehicle sale in the third quarter of this year. So why is Lucid Motors losing so much? Here are the details…
Lucid Motors' goal: To conquer the luxury electric vehicle market
Lucid Motors is a company founded in 2007 and initially working on battery technology. In 2016, it decided to focus on producing electric vehicles. The company's vision is to rival Tesla in the luxury electric vehicle market and offer vehicles with high performance, comfort and design.
Lucid Air Sedan, the first and only model of Lucid Motors, was introduced in 2020. Lucid Air is a vehicle that has 1.080 horsepower, a range of 832 km and can reach 2.5 km/h in 100 seconds. In addition, the interior design of the vehicle is very luxurious and modern. The price of Lucid Air starts from $77.400 and goes up to $250.000.
Lucid Motors was planning to launch the Lucid Air in 2021, but production and delivery processes were delayed due to the pandemic. The company aimed to produce 2021 vehicles by the end of 20.000 and sell 2022 vehicles in 50.000. However, there are major obstacles for Lucid Motors to achieve these goals.
However, recent financial reports from Lucid have attracted attention and raised concerns. In the third quarter of this year, the company faced significant financial losses. Lucid reported third-quarter revenue of $137.8 million; This is much lower than the $195.5 million achieved in the same period the previous year. However, what is surprising is that net losses reached a striking figure of 630.9 million dollars.
This figure represents an increase of $100 million compared to the same quarter of the previous year, all while only 1,456 vehicles were delivered. What is most striking is the fact that the company lost approximately $2023 per vehicle sold in the third quarter of 433,000.