Lucid is raising the price of its luxury AirVs by 13%

Lucid Group is the latest automaker to raise the price of its electric cars.

The company announced on Thursday, along with its first-quarter earnings report, that they were raising the price of a variant of its luxury Air sedan, starting June 1. As a result of the price increase, the base price of the air sedan has increased by 13%.

Not all existing reservation holders will experience price increases, the company said, adding that updated prices for Canada will be released June 1. Lucid revealed that considering it has 30,000 reservations for Air, it will be a while before the company sees the benefit from this increased price.

Air Grand Touring will cost about 4 154,000, an increase of about 15,000; The cost of air touring will be 12,400 plus $ 107,400; And Air Pure will increase 10,000 to $ 87,400. The Lucid Air Grand Turing performance model, which was announced two weeks ago, will remain the same at $ 179,000, the company said. All of these prices are for the base model, so the final price tag can be much higher for customers.

Other carmakers such as Tesla and Rivian have announced similar increases in the price of their electric vehicles, blaming inflation for the ongoing supply chain problems from the epidemic and Russia’s invasion of Ukraine, as well as rising costs from suppliers, which are now being sent to them. Consumer. In the case of Revian, the company was initially going to raise prices for reservation holders as well, but quickly reversed that decision.

“Like many companies in our industry, we continue to address global supply chain and logistical challenges, including the closure of covid-related factories in China. We are working closely with our suppliers to reduce the impact of disruptions,” Sherry House, CFO of Lucid, said in a statement. “While any increased disruption could affect our production forecast, today we are reiterating our production forecast for 12,000-14,000 vehicles for 2022 based on the information we have at this time with our mitigation plan.”

Lucid’s guidelines for delivery remain unchanged, and the company says it still expects Air Grand Turing Performance Delivery in June, as well as Air Turing and Air Pure expected later this year. According to Lucid CEO and CTO Peter Rollinson, the Project Gravity SUV aims to start production in the first half of 2024.

Last quarter, Lucid lowered its guidance to 20,000 units, promising its Q3 earnings.

EV Startup says it is facing strong demand with more than 30,000 customer reservations to date, representing potential sales of $ 2.9 billion, the company said. Another question is whether it will be able to maintain that demand with its current price increase, but perhaps those who are rich enough to buy a Lucid car will see an additional $ 12,000 as a mere pocket change.

The company also noted that it had recently signed an agreement with the Saudi government to purchase 100,000 electric vehicles from Lucid over the next 10 years. According to Lucid’s 10-Q filing with the Securities and Exchange Commission, the deal, announced last month, follows a loan agreement from the Saudi government that companies entered into in late February. The deal promises to lend Saudi Arabia up to িড 1.4 billion to Lucid, if the government can reduce the availability of capital under certain circumstances.

Lucid Motors Q1 2022 Financial

Lucid Motors closed the quarter with revenue of $ 57.7 million, which the company said was driven by the delivery of 360 vehicles to customers in the three months ending March 31. That’s significantly higher than the company’s 31 313,000 in the last quarter. This year, Yahoo Finance estimates that $ 53.43 million more than analysts had expected.

The company reported a net loss of $ 81.3 million in the first quarter, an improvement over last year’s loss of $ 748 million. According to a filing with the SEC, Lucid said it expects to bear significant losses and rising costs as it equips and expands manufacturing facilities in Arizona and Saudi Arabia, developing and establishing charging partnerships and growing as a company in general.

Lucid’s balance sheet shows about $ 5.4 billion in cash on hand, which the company says is enough to well-fund operations by 2023. This is consistent with analysts’ expectations for easing supply chain problems in the second half of the year, which will allow the company to increase production and potentially stick to its long-term growth roadmap, including expanding its production line-up and overseas availability.

Despite some rosy outlook for future production, Lucid shares fell nearly 7% in after-hours trading, which may be due to the rise in car prices.

Legal updates

Lucid has filed several lawsuits from investors who allege that the company made false and misleading statements about the expected start of production for Lucid Air, as well as an SEC investigation into its SPAC merger with Churchill Capital Corporation IV and Ativar. Inc.

In a filing on Thursday, shareholder Victor Mangino also filed a lawsuit against the company, filed April 1, alleging similar allegations regarding the projection from late 2021 to early 2022 and the statement to update the guidelines. The case is still ongoing

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