Luxury electric vehicle maker Lucid Motors recorded a net loss of $764.2 million in the second quarter, a significant increase from the $555.3 million loss during the same period last year. The company’s revenue, however, experienced a positive growth of 55%, reaching $150.9 million.

Despite these financial results, Lucid’s delivery numbers remained steady at 1,404 vehicles during the second quarter. However, production saw a 6% decline as the company faced challenges in scaling up its operations.

The price war instigated by market leader Tesla, along with the Model S price cuts and increasing borrowing costs, have posed significant threats to Lucid’s growth. In response, the company made the decision to slash prices for its Air luxury sedan over the weekend.

Furthermore, Lucid has been facing rapid cash burn and has secured $3 billion through a stock offering, with a significant portion of the funds coming from Saudi Arabia’s Public Investment Fund.

Despite these challenges, Lucid Motors remains determined to achieve their goal of producing more than 10,000 vehicles by 2023, according to CEO Peter Rawlinson. The company has also entered into a long-term strategic partnership with Aston Martin.

Moving forward, Lucid has exciting plans for the second half of the year, including the production launch of the Lucid Air Sapphire and the Lucid Air Pure Rear Wheel Drive. Additionally, they are set to unveil their highly anticipated SUV, Lucid Gravity, in November.

Following the announcement, Lucid Motors’ shares experienced a nearly 4% increase in aftermarket trading, reaching $6.66.

Source: Reuters and Automotive News

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