US electric-car start-up loses half-a-million dollars on each vehicle it builds – report
Once touted as a rival to electric-car giant Tesla, rival start-up Lucid Motors is on track for another horror financial year after failing to reach its sales targets and losing billions of dollars.
US electric-car start-up Lucid is losing almost $US340,000 – equivalent to more than $535,000 in Australian currency – on every vehicle which rolls off its production line, according to overseas reports.
As reported by Bloomberg, Lucid Motors – which began production of the Tesla Model S-rivalling 'Air' sedan in late 2021 – is currently heading towards a financial black hole, as the California-based company continues to miss its delivery targets and loses investors.
The business publication estimates for every Air built, Lucid loses approximately $US338,000 ($AU536,500) – a significant amount considering the electric sedan’s list price ranges from $US77,400 ($AU122,900) to $US138,000 ($AU219,000).
For context, Bloomberg estimates fellow electric-car start-up Rivian – which started producing its R1T pick-up shortly before Lucid launched the Air – loses $US110,000 ($AU174,600) for every vehicle it builds.
From July to September 2023, the electric-car maker also produced almost 30 per cent less cars compared to the three months prior, building 1550 Airs in the third-quarter – down on the 2173 examples which rolled off the production line between April and June.
Based on the estimated cost per vehicle, this means Lucid has lost almost $US1.26 billion ($AU2 billion) between April and September alone – putting it on track to match the $US2.6 billion ($AU4.1 billion) loss posted last year amid struggles ramping up production of the Air.
Lucid’s failures to reach its production targets has also led to a dramatic drop-off in its share price within the past two years, having reached a peak of $US55.21 in November 2021 to now less than $US5 per share, an all-time low for the company.
This year alone, Lucid’s share price is down almost 30 per cent, which does not include a brief spike to almost $US13 a share in mid-January.
By comparison, electric-car giant Tesla – which experiences dramatic ebbs and flows in its share prices – experienced a two-year low of $US108.10 per share in January 2023, before recovering to more than $US per share recently.
Lucid has previously announced its intention to launch in right-hand-drive markets such as Australia and the UK, though not before 2025.