Electric car start-up's per-vehicle losses reach half a million dollars - study

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【Summary】US electric-car start-up Lucid Motors is facing significant financial losses, with reports indicating that the company is losing around $340,000 on each vehicle it produces. This comes as Lucid fails to meet its sales targets and struggles to attract investors. The company's share price has also plummeted, reaching an all-time low. Lucid's struggles with production and delivery have resulted in a loss of almost $1.

FutureCar Staff Oct 19, 2023 11:17 PM PT

Electric car start-up's per-vehicle losses reach half a million dollars - study

Lucid Motors, once seen as a competitor to Tesla, is facing another challenging financial year. The start-up has failed to meet its sales targets and has lost billions of dollars. According to reports, Lucid is losing nearly $340,000 on every vehicle it produces. This significant loss is putting the company in a financial black hole, as it continues to miss delivery targets and lose investors.

Bloomberg estimates that for every Lucid Air sedan built, the company loses around $338,000. This is a substantial amount considering the car's list price ranges from $77,400 to $138,000. In comparison, rival start-up Rivian loses $110,000 for every vehicle it builds. Lucid's production numbers have also declined, with almost 30% fewer cars produced from July to September 2023 compared to the previous three months.

Based on the estimated cost per vehicle, Lucid has lost nearly $1.26 billion between April and September alone. This puts the company on track to match the $2.6 billion loss it posted last year. Lucid's failure to reach production targets has also resulted in a significant drop in its share price. In the past two years, the company's share price has plummeted from a peak of $55.21 to less than $5 per share, an all-time low.

In contrast, Tesla's share prices have experienced fluctuations but have shown signs of recovery. Lucid had plans to expand into right-hand-drive markets like Australia and the UK, but those plans have been delayed until at least 2025.

Overall, Lucid Motors is facing financial challenges due to missed sales targets, significant losses per vehicle, and a decline in share prices. The company's future success will depend on its ability to address these issues and regain investor confidence.

About the author: Jordan Mulach is a Canberra/Ngunnawal born writer currently residing in Brisbane/Turrbal. He joined the Drive team in 2022 and has previously worked for various automotive publications. Jordan is passionate about racing and can often be found either behind the wheel of his car or immersed in virtual racing on iRacing.