Skip to content Skip to Search
Skip navigation

Lucid cuts electric car prices but posts higher revenue

Lucid cut the price of its flagship Air model in February by as much as 10 percent Lucid
Lucid shaved as much as 10% off the price of its flagship Air model in February
  • Prices cut by up to 10%
  • Q1 revenue $170 million
  • PIF major investor in Lucid

Saudi-backed US electric vehicle maker Lucid reported first-quarter revenue above analysts’ estimates this week as it sets to produce more cars this year but selling at cheaper prices to spur sales. 

The Nasdaq-listed EV company had cut prices of its flagship Air sedans in February by up to 10 percent, as customers globally began to turn to less expensive hybrid cars because of high interest rates.

The company reported first-quarter deliveries above market expectations last month as a result of the lower prices. This was despite rival Tesla reporting its first fall in quarterly deliveries in nearly four years. 

Revenue for the first quarter was $173 million on sales of almost 2,000 vehicles but with a net loss of $685 million, below a $779 million loss the year before. Lucid said it was on track to produce 9,000 cars this year, compared with 8,428 last year.

It will start production of a more affordable midsize car in late 2026 to attract a larger customer base. 

In Q1 Lucid raised $1 billion in financing via a private placement to an affiliate of Saudi Arabia’s Public Investment Fund, reflecting PIF’s support for the company. 

PIF has invested billions in the California- and Arizona-based company as part of a strategy to diversify the kingdom’s economy beyond oil and boost green industries. 

In Saudi Arabia, imports of electric vehicles rose sharply in 2023, but to a total of just 779 EVs, despite government hopes that it can become a green economy leader through the manufacture and use of electric cars. 

The kingdom imported only 210 EVs in 2022, showing the mountain it has to climb to realise ambitions set out in its Vision 2030 economic transformation plan.

On May 2 Lucid signed a memorandum of understanding with King Abdulaziz City for Science and Technology to boost EV technology’s adaptability to the tough Gulf climate and encourage more use.

Latest articles

Aircraft, Airliner, Airplane

Tunisair growth slows as costs rise

Tunisair’s revenue increased by only 3 percent year on year to TND695 million ($224 million) in the first half of 2024, as fuel costs rose and its market share shrank. Passenger numbers went up by 2 percent to 1.17 million, compared to 1.15 million a year ago, the state-run Tunis Afrique Presse reported. Average revenue […]

A cattle drive in the Pantanal region. Meat is a major component of Brazil's trade with Saudi Arabia

Brazil’s JBS to open Saudi food factory as trade ties deepen

Brazilian multinational JBS is to open a food factory in Saudi Arabia with an investment of SAR500 million ($133 million), in a further sign of the strengthening ties between the two countries. JBS, one of the largest meat and poultry producers in the world, will open the facility in Jeddah under its subsidiary Seara by […]

Architecture, Building, Convention Center

First Abu Dhabi Bank revenue rises on overseas growth

First Abu Dhabi Bank (FAB), the UAE’s biggest lender, said revenues rose 16 percent year on year to AED15.7 billion ($4.3 billion) in the first half of 2024, driven by 30 percent annual growth in international franchise. Net profit increased 3 percent to AED8.4 billion despite the impact of corporate tax, which came into effect […]