Troubled electric vehicle (EV) maker Lucid Group Inc. (NASDAQ: LCID) repeatedly has proven that it is unlikely to remain a competitor in the EV race. Its ability to compete already may be over. Lucid produced just 2,314 cars in the first quarter and only sold 1,406. By comparison, market leader Tesla topped 400,000 by both measures. (These are the 13 biggest electric vehicle business failures in American history.)
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Lucid’s management made the ridiculous decision to trumpet strengths that either do not exist or do not matter as it announced the figures: “…setting new standards for luxury electric experience with the Lucid Air, winner of the 2023 World Luxury Car Award.” It was as if to say, we are great, but we are failing.
Lucid’s production was just as terrible last year. It produced only 7,180 cars. That makes the first quarter of this year look even worse.
Lucid’s revenue last year was only $606 million. On that, it lost $1.3 billion. Wall Street is nervous that Lucid will run out of money this year or next. If it cannot ramp up sales, the odds this forecast is true are exceedingly high.
Lucid has two immediate problems. The first, mentioned by the CEO, is that almost no one has heard of the company. This problem will worsen as more famous car brands enter the EV market. Tesla has one of the most valuable and recognized brands in the world. The world’s largest car companies are rushing to lead the EV market, each spending billions of dollars.
The other problem is that the Lucid vehicles are ridiculously expensive at $138,000. A high-end Model S Tesla, a direct competitor, costs just over $100,000.
Investors already have abandoned Lucid stock, as the share price has fallen 63% in the past year. That figure should be closer to 100%.
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