Lucid Group Exceeds Third-Quarter Delivery Expectations

By Zaheer Kachwala

(Reuters) – Lucid Group surpassed market expectations for third-quarter deliveries, as discounts and affordable financing for its luxury electric vehicles enhanced demand amidst economic uncertainty.

Shares rose around 1.5% following the announcement, with the company delivering 2,781 vehicles for the quarter ending September 30, exceeding estimates of 2,242 from eight analysts surveyed by Visible Alpha.

Despite this, consumer interest in electric vehicles (EVs) in the U.S. has been declining due to high interest rates and more accessible hybrid alternatives. Following the trend, EV manufacturers like Tesla (NASDAQ:TSLA), Rivian (NASDAQ:RIVN), and Lucid (NASDAQ:LCID) have reduced prices and are providing incentives such as cheaper financing options to attract customers.

Lucid witnessed a sequential decline in production, manufacturing 1,805 vehicles in Q3 compared to 2,110 in the previous quarter. Andres Sheppard, a senior equity analyst at Cantor Fitzgerald, attributed this drop to the company depleting its existing inventory.

Looking ahead, Lucid is focusing on its Gravity SUV, anticipated to commence production later this year, aiming to compete with Tesla’s Model X and Rivian’s R1 models. Sheppard noted that Lucid’s cost margins may compress once Gravity’s production ramps up.

Garrett Nelson, a senior equity analyst at CFRA Research, remarked, “We think Lucid will have its work cut out in Q4 to hit its 2024 production guidance of 9,000 units.”

Rivian recently lowered its annual production forecast and missed quarterly delivery estimates due to weak demand and a parts shortage, while Tesla reported disappointing delivery data as well.

In August, Lucid disclosed receiving up to $1.5 billion in cash from its largest shareholder, Saudi Arabia’s Public Investment Fund, as it prepares to accelerate production and launch a mid-size car expected to debut in late 2026.