Lucid Wants To Double Production In 2023

Electric Vehicles / 19 Comments

The automaker is aiming to build between 10,000-14,000 vehicles this year.

Lucid Motors announced minor improvements across the board in a fourth-quarter and full-year earnings report released Wednesday and will use this positive momentum to increase production in 2023.

The all-electric automaker said fourth-quarter revenue totaled $258 million, which is considerably higher than the $26.4 million recorded during the same period a year earlier. According to Reuters, business analysts expected Lucid to reach sales of around $303 million.

In the fourth quarter, the brand produced 2,493 examples of the Air and delivered 1,932 of those vehicles to customers. For the year, Lucid reported production of just 7,180 vehicles. Deliveries totaled 4,369 for the entirety of 2022. The automaker narrowly surpassed its revised outlook of 7,000 vehicles; Lucid had initially hoped to manufacture 12,000-14,000 units but dropped that due to supply challenges.

2022-2023 Lucid Air Rear Angle View Lucid

"Last year was a challenging year for everyone, yet despite the extraordinary supply chain and logistics challenges, the team persevered with an unrelenting focus on delivering what we believe is the best luxury sedan on the market," said Lucid CEO Peter Rawlinson.

Reservations have dipped below the 30,000 mark and now sit at 28,000. This is 6,000 fewer than late last year, which suggests the company is now meeting demand, or there is less of it. For 2023, Lucid is looking to double its production outlook and hopes to build between 10,000-14,000 vehicles.

There could be many reasons for this push in production. Consumers tired of the long wait could be canceling their orders, which leads to reduced profits for Lucid. We've already caught wind of the automaker's strategy to retain customers, and this may be part of it.

2022-2023 Lucid Air Central Console Lucid

The increased production outlook could also accommodate an increase in potential interest from customers. Certain models are now available with a limited-time discount, which could drum up extra business for the automaker.

Of course, more cars mean the California-based company can also clear through the still-high backlog of orders. There's also a chance Lucid wants to get ahead of potential parts shortages. Supply chain issues have previously been a great obstacle for the brand and previously forced it to halve its production outlook.

But, according to Rawlinson, production is no longer the issue for Lucid - sales are a far bigger concern. As per Automotive News, the CEO told investors on an earnings call, "We've solved production. That is not the issue here now."

2022-2023 Lucid Air Forward Vision Lucid

"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 and just too few people aware of not just the car but the company," he added.

The company, which is backed by Saudi Arabia's Public Investment Fund, has introduced several new variants of the Air sedan to attract a wider range of customers. The high-performance Air Sapphire with 1,200 horsepower and the more affordable Air Pure serve two distinct client bases and will hopefully broaden appeal. A Gravity SUV is slated to arrive in 2024.

"Lucid Air is the quintessential luxury sedan, and our goal in 2023 is to amplify our sales and marketing efforts to get this amazing product into the hands of even more customers around the world," Rawlinson added.

The company also intends to take a "vigorous and comprehensive" look at reducing operating manufacturing costs. Potentially, that could mean more affordable Lucid EVs in the long run.

Lucid Motors

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2022-2023 Lucid Air Rear Angle View
2022-2023 Lucid Air Forward Vision
2022-2023 Lucid Air Central Console

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