The luxury electric car manufacturer, Lucid Group Inc., has reported a decline in production and deliveries for the fourth quarter compared to the previous year. In 2023, only 8,428 Air sedans were manufactured, falling significantly short of their initial projection of 10,000 to 14,000 units and even missing the revised estimate announced in November.

Lucid Stocks Sinks New Low

Lucid's stock has fallen to a new all-time low and deliveries have significantly decreased. Lucid Group Inc. observed a decrease in fourth-quarter electric vehicle deliveries compared to the previous year. Specifically, during the final quarter of 2023, Lucid delivered a total of 1,734 vehicles.

While this represents a slight increase from the third quarter, when 1,456 vehicles were delivered, it still reflects a decline from the peak deliveries recorded in the fourth quarter of 2022. In Q4 2022, Lucid had successfully handed over 1,932 vehicles, marking a nearly 12% year-over-year decrease in deliveries for the same period in 2023.
Over the course of the last year, Lucid's stock has experienced a decline exceeding 60%. Electrek delivered details about this news from Lucid.

The recent reduction in Lucid's stock price-which dropped by 7% on Thursday and hit a new low-has been attributed to the factors mentioned above.

Reports had it that  in February, Lucid had forecasted that they would produce between 10,000 and 14,000 cars in 2023. As of September, the company had indicated that it was still on track to meet the initial production target of 10,000 vehicles. However, in November, Lucid revised its 2023 guidance, lowering it to a range of 8,000 to 8,500 cars.

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Furthermore, over the entire year, the company reported the production of 8,428 electric vehicles (EVs) and the delivery of 6,001 units. In the previous year, 2022, these figures stood at 7,180 EVs produced and 4,369 units delivered.

Underlying Reasons

Reports cited the reasons behind this significant event - Lucid stocks sinks new low. Growing borrowing rates have made many less interested in purchases, electric cars (EVs). Thus, significantly affecting EV market. Automakers such as Ford and General Motors have had to reschedule their planned expansions of their EV and battery factories due to the current circumstances.

A price war that was started almost a year ago by Tesla, the leading EV manufacturer, has also affected Lucid. Securing its market dominance in the EV sector and combating the waning demand were Tesla's objectives.

Due to consumers' increased reluctance to make major purchases, higher borrowing rates have negatively impacted the market demand for electric cars (EVs). Lucid has also been impacted by a pricing battle that was initiated by Tesla, the top EV maker, about a year ago.

More About Lucid

As per its website, The American electric vehicle company takes pride in its status as a publicly traded entity on the Nasdaq exchange. While the company's manufacturing facility is based in Arizona, its corporate offices are located in California.

The company targets to provide sustainable mobility solutions that leave no room for compromise, crafting vehicles that are intuitive, liberating, and suitable for all the ways individuals travel or move from one destination to another.

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