America’s Worst Car Company–Lucid
Lucid and Rivian, two tiny EV companies, announced that their businesses fell apart recently. Even if they were well-run, the EV market is crumbling. They do not have the sales or balance sheets to stay in the game. Both companies are poorly run, but Lucid is the worse of the two.
EV Collapse —Rivian’s Horrible Results
EV Prices —A Huge Drop Makes A Problem
Lucid is a penny stock, which Rivian is not. After announcing earnings, its stock dropped 16% to just above $3. In the last two years, the shares are down 88%.
Lucid only delivered 6,001 cars last year. That is up only 37% from a tiny number the year before. At least Rivian’s sales are in the tens of thousands yearly, showing some demand, no matter how modest. Lucid says it can produce 9,000 cars in 2024. The figure needs to be several times that.
Lucid likes to broadcast the awards it has received. Among them was the Car and Driver’s 10Best. It can carry that award into Chapter 11.
Ever searching for exaggeration, Peter Rawlinson, Lucid’s CEO and CTO, commented, “Lucid is investing for the long term in technology, manufacturing and partnerships to further solidify our place in the market as the premier luxury EV brand in the world.” Lucid does not hold any place in the EV market at all.
Lucid’s revenue in the fourth quarter was $157 million, down from $257 million in the same quarter a year ago. It lost $654 million, compared to $472 million. Lucid may have two years of cash left, but its losses may worsen.
Lucid also cut prices recently, which will eat into margins. According to The Wall Street Journal, “Lucid cut the starting price of its Air sedan by 10% on Thursday, to $69,900, the second reduction for the vehicle in two months.”
Peter Rawlinson became CTO of Lucid in 2013 and CEO in 2019. He has had his chance at a turnaround and has failed dismally.
