Lucid Gravity Production Faces Initial Hurdles, But Outlook Remains Positive
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Casa Grande, Arizona – Lucid Motors is experiencing slower-than-anticipated production ramp-up for its new Gravity SUV, according to recent company statements. While initial projections aimed for 20,000 Gravity units this year, the company now forecasts between 18,000 and 20,000 deliveries, citing ongoing supply chain challenges. This news comes after a leadership transition earlier this year, with Marc Winterhoff taking the helm following the departure of Peter Rawlinson.
Lucid, backed by notable investment from the Middle East – specifically the Public Investment Fund (PIF) of Saudi Arabia, which owns over 60% of the company – has been expanding its vehicle lineup beyond the flagship Lucid Air sedan. The Gravity SUV,entering production several months ago at Lucid’s Advanced Manufacturing Plant (AMP-1) in Casa Grande,Arizona,represents a crucial step in the company’s growth strategy. The Air, known for its record-breaking range and performance, continues production alongside the Gravity.
Supply chain Issues Constrain Output
CEO Marc Winterhoff acknowledged the production challenges, stating, “we are where we want to be with the production of Lucid Gravity in relation to our goal at this time of the year.” He attributed the slower pace to “bottlenecks in our supply chain,” but emphasized that the company has made significant progress in resolving these issues. Specific components causing delays have included specialized battery modules sourced from LG Energy Solution and certain electronic control units.
Winterhoff highlighted the team’s efforts to improve manufacturing efficiency, noting, “We have overcome most of these problems and we are beginning to increase Lucid Gravity production.” The company is actively diversifying its supplier base to mitigate future disruptions. Lucid has also invested in vertical integration, bringing more component manufacturing in-house to gain greater control over the supply chain.
Financial Performance and expansion
Lucid Motors reported $259 million in revenue for the second quarter of 2024,but also registered a pre-tax loss of $632 million. The company anticipates continued losses as it scales production and expands its global footprint. However, these losses are decreasing as international sales grow. Lucid currently has a presence in Europe, with official representation in key markets like Germany, the netherlands, and the UK. The Lucid Air currently boasts the longest range of any electric vehicle available on the European continent, exceeding 800km (approximately 497 miles) on the WLTP cycle.
The Gravity SUV is expected to significantly contribute to Lucid’s revenue growth, particularly in the premium SUV segment. Pricing for the Gravity starts at $120,000, positioning it against competitors like the Porsche Cayenne Turbo S E-hybrid and the BMW iX M60. Lucid is also exploring potential expansion into new markets, including asia and the Middle East, to further capitalize on growing demand for luxury electric vehicles. The company’s long-term strategy hinges on establishing itself as a leading player in the EV market through technological innovation and a commitment to sustainable manufacturing practices.
