Lucid Group shares are barely in the green so far this year after suffering a brutal blow in 2022. Even as the company engages in a price war with Tesla amid an uncertain competitive landscape, a rare bit of good news has just come from Saudi Arabia.
According to the reporting of the Arabic publication Maal, Lucid Group's assembly factory within the framework of its giant AMP-2 facility in Jeddah's King Abdullah Economic City (KAEC) will go into operation in September 2023. The company will send all relevant parts to the air. EV from the AMP-1 facility in Arizona, with final assembly in Jeddah. Lucid Group plans to increase the annual production capacity of the AMP-2 plant to 150,000 units by 2026. The Kingdom has already awarded incentives of around $3 billion to Lucid Group to establish its AMP-2 plant in KAEC. The Saudis have also signed an agreement to buy up to 100,000 electric vehicles from the company over the next ten years.
In Q2 2023, Lucid Group produced 2,173 vehicles at its Arizona manufacturing facility and delivered 1,404 vehicles. The company has struggled to increase production and sales, and has repeatedly had to cut its annual production target. Towards the beginning of 2023, Lucid Group was aiming for an annual production of 14,000 units for the whole year. However, while the company announced its Q1 2023 earnings, it cut that target to just 10,000 units. The EV player also continues to suffer from tepid demand for its luxury EV, as evidenced by its high inventory levels.
• Air Pure AWD: $82,400 (from $87k)
• Air Touring: $95k (from $108k)
• Air GT: $125k (from $154k) pic.twitter.com/byaRGnF8TD
Against this backdrop, it is hardly surprising that Lucid Group has now cut the prices of its Air EV variants by up to 18.8 percent to better compete with Tesla's Model S. However, the move risks triggering a damaging price war with the EV giant, which can afford to wage such a war because of its still healthy margins.
Lucid Group's long-awaited Gravity SUV is due to launch next year. The company is scheduled to announce its results for the second quarter of 2023 later today.
Lucid Motors was once hailed as the next Tesla, but now it faces a grim future. The electric vehicle start-up has seen its stock price plummet in recent mont…
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