Electric-vehicle start-up, Lucid, experienced a decline in vehicle production and sales during the second quarter, disappointing investors.
According to the company, Lucid manufactured 2,173 vehicles in Q2, with only 1,404 of them sold. This figure is lower than the 2,314 units produced and 1,406 sold in the previous quarter.
These numbers reflect a decrease from Lucid’s impressive performance in the fourth quarter of 2022 when they produced 3,493 units and delivered 1,932.
As a result of this news, Lucid’s stock experienced a 4.7% drop in early trading on Wednesday. Conversely, the S&P 500 and Nasdaq Composite saw gains of 0.9% and 1.2%, respectively, due to updated data indicating a slowdown in year-over-year inflation in June.
When compared to other electric vehicle manufacturers, Lucid’s recent figures are less impressive. Tesla, for instance, achieved a record delivery of 466,000 units in the second quarter, surpassing Wall Street’s expectations. However, it’s important to note that Tesla holds a dominant position in the global electric vehicle market and isn’t an entirely fair benchmark for start-ups like Lucid.
On the other hand, Rivian Automotive, which is more analogous to Lucid in terms of market capitalization and ambition, produced 13,992 units in Q2. If Rivian continues this pace into the third and fourth quarters, it is projected to manufacture approximately 51,000 units in 2023, surpassing its current guidance of 50,000 units.
If Lucid maintains its Q2 level of production, it will manufacture roughly 8,800 units in 2023, falling short of its recent guidance of around 10,000 units. At the beginning of the year, analysts had expected Lucid to manufacture closer to 20,000 units.
The weaker demand and production have had a negative impact on Lucid’s share price, which has dropped approximately 60% over the past year. While there has been a recent rally that has pushed shares up by more than 10% year-to-date, the overall performance remains disappointing.