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Shockingly, Lucid shows signs of problems selling its cars. CNBC reported, “Luxury electric vehicle maker Lucid appears to have a demand problem.” As an EV manufacturer expected to have great success, a falling number of people have reservations to buy the cars when they are available. It is harder to imagine a larger catastrophe. (See if Lucid is one of the least reliable cars in America.)
Lucid public filings recently showed reservations for its cars were “over 28,000.” That was down from “over 34,000” in November. Lucid management also plans to build 10,000 to 14,000 this year. Analysts expected double that number.
CEO Peter Rawlinson made a startling admission. “We’ve solved production. That is not the gating issue here now. My focus is on sales. And here’s the thing: We’ve got what I believe to be the very best product in the world. … Too few people are aware of not just the car, but even the company.” He forgot to mention both the car and the company have gotten massive amounts of media attention. The Lucid Air was named Motor Trend’s “Car of the Year” for 2022. Rawlinson’s comment is a weak excuse.
Lucid’s shares have fallen 63% this year. Based on management’s inability to run the company effectively, they should be down more.
It is worth remembering that a “reservation” for a can is not a sale or even an order. Anyone can reserve a Lucid Air Pure for $300. Lucide has to turn that into an $87,400 sale. To be sure, the reservation figure is used by other car companies but is entirely misleading.
The demand for EV cars has been sucked out of the market because of Tesla. It has cut prices and may sell as many as two million cars this year. Price cuts will help it maintain market share and elbow out its competitors.
Lucid is on the ropes and has been for some time. The recent news shows how impossible it will be for the company to succeed. (Click here to see the 13 biggest electric vehicle failures in American history.)
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