Photo: Lucid
Lucid posted the first-quarter earnings, which were as bad as analysts expected. However, the EV startup thinks it will be around long enough to launch a more affordable model. The Tesla Model Y competitor is expected to start production in late 2026 unless Lucid kicks the bucket by then.
These are rough times for EV startups, and the harsh economic conditions have spared none in the past 12 months. Rivian is arguably the best positioned to emerge victorious if victory means cutting losses and avoiding bankruptcy. Fisker has passed that stage and will likely disappear into oblivion by the year's end. Lucid sits right in the middle, and it is still unclear which way it will go.
The company shared the first-quarter financial data, and it doesn't look good. Lucid is losing a significant amount of money trying to start production of the Gravity SUV while at the same time struggling to find buyers for its Air sedans. The company reported revenues of $173 million, slightly better than analyst consensus. However, the losses exceeded expectations, with a net loss of $685 million for the quarter. It's better than the $780 million from Q1 2023, but not enough to matter.
Lucid sold 1,967 vehicles in the first three months of the year, which means it lost roughly $350,000 for every car it sold. This left the company with about $5 billion in total liquidity after receiving a $1 billion investment from its largest investor, Saudi Arabia's Public Investment Fund (PIF). The support from PIF has been clearly highlighted by Lucid CEO Peter Rawlinson, who said the partnership is one of the "two factors that set Lucid apart." The other is Lucid's in-house technology.
This makes Rawlinson confident enough to start thinking about expanding the vehicle lineup to include more affordable vehicles. After launching Air Pure, a $70,000 variant of its only current product, Lucid hinted at a future compact SUV coming in late 2026. The Tesla Model Y competitor will be built on the company's upcoming Midsize platform, which was teased in the shareholder deck as a "High-Volume Midsize EV."
The new model is expected to start at about $48,000, which is the price of the Tesla Model Y AWD. Rawlinson believes the compact SUV is key to competing with Tesla in the vehicle market. "We're already competing with Tesla," Rawlinson said. "But, wait until our Midsize [SUV] comes out in late '26; that's when we'll have a car at $48,000-$50,000, and that is the big one, the one that's going to be really exciting."
The compact SUV will start production roughly two years after Lucid's latest model, the Gravity SUV. Lucid bets on unparalleled efficiency afforded by its in-house technology, already proven in the Air sedan. Rawlinson sees efficiency as critical to reducing costs, as better efficiency means a longer range with a smaller battery pack.
However, given the company's appetite for burning cash, adding another model to the lineup might prove too big a chunk to swallow for the ailing company. Fisker's woes already put early adopters on warning, and many say they would not trust another startup that might not be around to provide service and support when needed. It remains to be seen if Lucid will prove skeptics wrong. After all, Saudi Arabia's PIF money (and willingness to spend it on Lucid) is not infinite.
The company shared the first-quarter financial data, and it doesn't look good. Lucid is losing a significant amount of money trying to start production of the Gravity SUV while at the same time struggling to find buyers for its Air sedans. The company reported revenues of $173 million, slightly better than analyst consensus. However, the losses exceeded expectations, with a net loss of $685 million for the quarter. It's better than the $780 million from Q1 2023, but not enough to matter.
Lucid sold 1,967 vehicles in the first three months of the year, which means it lost roughly $350,000 for every car it sold. This left the company with about $5 billion in total liquidity after receiving a $1 billion investment from its largest investor, Saudi Arabia's Public Investment Fund (PIF). The support from PIF has been clearly highlighted by Lucid CEO Peter Rawlinson, who said the partnership is one of the "two factors that set Lucid apart." The other is Lucid's in-house technology.
This makes Rawlinson confident enough to start thinking about expanding the vehicle lineup to include more affordable vehicles. After launching Air Pure, a $70,000 variant of its only current product, Lucid hinted at a future compact SUV coming in late 2026. The Tesla Model Y competitor will be built on the company's upcoming Midsize platform, which was teased in the shareholder deck as a "High-Volume Midsize EV."
The new model is expected to start at about $48,000, which is the price of the Tesla Model Y AWD. Rawlinson believes the compact SUV is key to competing with Tesla in the vehicle market. "We're already competing with Tesla," Rawlinson said. "But, wait until our Midsize [SUV] comes out in late '26; that's when we'll have a car at $48,000-$50,000, and that is the big one, the one that's going to be really exciting."
The compact SUV will start production roughly two years after Lucid's latest model, the Gravity SUV. Lucid bets on unparalleled efficiency afforded by its in-house technology, already proven in the Air sedan. Rawlinson sees efficiency as critical to reducing costs, as better efficiency means a longer range with a smaller battery pack.
However, given the company's appetite for burning cash, adding another model to the lineup might prove too big a chunk to swallow for the ailing company. Fisker's woes already put early adopters on warning, and many say they would not trust another startup that might not be around to provide service and support when needed. It remains to be seen if Lucid will prove skeptics wrong. After all, Saudi Arabia's PIF money (and willingness to spend it on Lucid) is not infinite.
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