(Reuters) – Lucid Motors experienced a 46.6% increase in deliveries for the third quarter as of Monday, spurred by a surge in demand for electric vehicles (EVs) prior to the expiration of generous tax credits last week. However, the company still fell short of expectations set by Wall Street.
As the EV maker and its competitors prepare for a significant decline in sales during the final quarter of the year, the absence of the $7,500 tax credits looms large. While some automakers have opted to reduce prices and devise strategies to prolong the benefits of the credit, others are cutting back on production in anticipation of a downturn.
The electric vehicle sector is already facing challenges including elevated tariffs on the importation of vehicles and automotive components into the United States.
Though Lucid manufactures its vehicles in the U.S., it sources certain parts from overseas. While Lucid cars did not qualify for cash purchase tax credits, the company effectively utilized these credits to provide enticing lease options.
In this quarter, Lucid delivered 4,078 vehicles, which falls short of the 4,286 deliveries that analysts, on average, had predicted according to Visible Alpha. This figure represents a notable increase from just 2,781 vehicles delivered during the same period last year.
Meanwhile, EV leader Tesla announced record high quarterly deliveries last Thursday, and Rivian also exceeded sales projections as consumers hurried to purchase EVs before the September 30 incentive deadline.
In an effort to enhance the appeal of its luxury Air sedans, Lucid has introduced promotions and discounts to attract buyers who are becoming more frugal due to rising interest rates.
The manufacturer has been proactively forming partnerships with North American companies to procure essential minerals for production locally.
The success of Lucid is significantly tied to the performance of its recently unveiled Gravity SUV, as well as an upcoming mid-size vehicle aimed at a $50,000 price point, which could help the company broaden its market reach.
(Reporting by Zaheer Kachwala, Harshita Mary Varghese in Bengaluru, and Abhirup Roy in San Francisco; Editing by Leroy Leo and Alan Barona)
