The Lucid Group Inc. (NASDAQ: LCID) net loss last year was $3.1 billion. It may not be an industry record, but it is huge for a small car company. Lucid’s loss was $2.8 billion in 2023.
The electric vehicle maker’s 2024 revenue was $807 million, up from $595 million in 2023. One reason for the modest numbers is that Lucid only produced 9,029 cars last year.
Lucid’s share price is down over 90% since its July 26, 2021, initial public offering. It went public through a special purpose acquisition company.
Lucid’s stock was down 6% after earnings to $2.61 per share. However, it recovered 10% on news that long-time CEO Peter Rawlinson would step down. Marc Winterhoff, chief operating officer, was appointed interim chief executive. Turqi Alnowaiser, the chair of the Lucid board of directors, commented, “Peter has been instrumental in the company’s transition from concept to reality and in developing unique, world-leading technology that has defined the next generation of EVs.”
Alnowaiser missed the point. Lucid’s problems are so deep that a new CEO cannot solve them. The company faces too many headwinds, which go beyond its losses and tiny unit sales.
Lucid is caught in the EV industry downdraft. Much of this concerns the loss of a $7,500 tax credit many Americans get when they buy an EV. Lucid’s cars are extremely expensive. Its lowest-priced vehicle costs just shy of $70,000, and its most-expensive model costs over $90,000. One of the potential buyer complaints about EVs is their initial price. If anything, the industry is trying to produce $25,000 vehicles to entice the wider public to move from gasoline-powered cars.
Additionally, Americans worry about the range EVs get on a single charge. Lucid claims its cars can go 400 miles without a change, but most EVs have ranges closer to 300 miles.
Another perceived problem for potential EV buyers is a lack of charging stations. While this may not be a problem in large cities, charging stations are rare across much of middle America.
Finally, Lucid has powerful competition. First among these is Tesla. However, every major legacy manufacturer, from GM to Hyundai, is jockeying for EV market share.
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