Lucid Motors is raising the prices of its luxury electric vehicles as the company continues to struggle with production. The company reported that it delivered just 360 vehicles to customers in the first quarter of 2022.
As of June 1, Lucid’s new increased prices will be $154,000 for the Air Grand Touring (previously $139,000), $107,400 for Air Touring (vs. $95,000), and $87,400 for Air Pure (vs. $80,000). That is an average increase of about 11 percent. The new Lucid Air Grand Touring Performance model, announced just two weeks ago, remains priced at $179,000. (All Lucid vehicles are eligible for the $7,500 federal EV tax credit, as well as all available state and local incentives.)
Speaking with investors, Lucid CEO Peter Rawlinson said the company would respect original prices for existing reservation holders, addressing a key point that caused a stir when Rivian announced a similar price increase.
“The world has changed dramatically since we first announced Lucid Air in September 2020,” Rawlinson said during the call. “And I want to assure our existing reservation holders that we will respect the current prices for all existing customers, as well as new reservations made before the end of the month. To ensure fairness and prioritization, we will be contacting reservation holders to facilitate order configurations to lock in prices once their specified model becomes available.”
The company reported a loss of $81 million in the first quarter of 2022 on revenue of $58 million. Last year, when the company had nearly zero revenue, Lucid reported a loss of $2.9 billion.
Lucid also said the number of reservations for its luxury Lucid Air sedan now exceeds 30,000, equating to $2.9 billion in potential sales. The company had previously said it had received 25,000 reservations.
Lucid struggles to get cars off the factory floor amid supply chain problems and other disruptions caused by the COVID-19 pandemic. Last quarter, the Newark, California-based company announced it lowered its annual production expectations to 12,000 vehicles from its original forecast of 20,000 vehicles.
Rawlinson also praised an agreement for the Kingdom of Saudi Arabia to purchase 100,000 vehicles. “This is one of the largest electric vehicle purchases I know of and we are excited to support Saudi Arabia in achieving its sustainability goals and net-zero ambitions by bringing our advanced luxury EVs to Saudi Arabia,” he said. .
Saudi Arabia’s sovereign wealth fund is a majority shareholder in Lucid, having made a $1 billion investment in the company in 2017. Lucid said it has $5.4 billion in cash reserves to run it through 2023.