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Inside Lucid's Plan To Sell More Cars

Now that production's up and running Lucid is turning its attention to building awareness and getting vehicles into customer hands. Here's how.

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Lucid Motors raked in $608 million in revenue during 2022 but still reported net losses of $1.3 billion. That's about half of the $2.6 billion the fledgling EV manufacturer lost in 2021, which, while demonstrating that Lucid is moving in the right direction, is still a huge sum to be out.

Lucid's Q4 and full year financial results for 2022 paint a rather worrying picture for the company and its investors. Gross profits decreased over the previous year with production bottlenecks blamed for missed production targets. Lucid CEO Peter Rawlinson attributes this in part to the fact that the production lines at AMP-1 have been designed to operate at a higher capacity than they were able to because of parts shortages, and this reduced line speed created additional problems for production.

Image showing a black Lucid Air with its hood raised near the end of the production line at AMP-1. The car's black paint is in stark contrast to its sterile white surroundings.

Reservations were another area of concern for the American automaker, with the 34,000 vehicles reserved as of November 2022 falling to somewhere around the 28,000 mark by the earnings call on February 21st. This still represents a potential $2.7 billion in sales, but the drop in reservations will certainly have the manufacturer and LCID bulls worried.

Lucid's Solution
Lucid's remedy for these problems is quite simple: get more cars into owners' hands and raise more awareness for the brand. The company has focused on establishing its production flow until now, but plans to switch its efforts to getting as many cars out the door as possible from now on. If building more personalized specification Lucid Airs has to come at the expense of churning out thousands of cars, so be it.

Lucid built over 7000 vehicles in 2022 and delivered around 4500. The company hopes to as much as double those numbers in 2023 with production guidance currently set at 10,000-14,000 cars. Lucid Air deliveries are underway in Europe and the Middle East, where Lucid is backed by heavy investment from the Saudi Public Investment Fund, and has a deal to supply the Saudi government with up to 100,000 Lucid vehicles. Construction is already underway for Lucid's AMP-2 factory within the Kingdom.

Rendering showing Lucid's AMP-2 factory in Saudi Arabia among palm trees. AMP-2 will assemble knock-down kits before beginning full production.Lucid's AMP-2 factory in Saudi Arabia will assemble knock-down car kits before moving to full production.

Lucid hopes to increase demand and customer awareness by marketing more Lucid Air configurations:

“We're making a conscious decision to match production, whilst focusing upon cost-effective build quality. We are focused on building versions of Air to meet customer interest and getting Lucid Air into the hands of more drivers who can become brand advocates.”

The company's leadership believes that once there are more Lucid Airs out in the wild the public's awareness of the brand will increase leading to more business.

Deliveries of Lucid Airs equipped with the optional "Stealth Look" package have already been delayed by parts shortages, though the rest of the company's revised targets are still being met at this time. Production of the range-topping and Tesla Plaid-killing Lucid Air Sapphire are scheduled to begin this summer and reservations for the upcoming Lucid Gravity SUV are set to open later this year.

Related Story: Lucid Opens Studio In EV-Loving Norway

Images by Lucid Motors licensed by CC BY 4.0.

James Walker is an Automotive Journalist at Torque News focusing on Lucid Motors. If it's got wheels he's interested, and he's looking forward to seeing what kind of cars the EV revolution brings us. Whether it's fast, slow, new, or old, James wants to have a look around it and share it in print and on video, ideally with some twisty roads involved. You can connect with James on Twitter, Instagram, and LinkedIn.

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Comments

John Goreham    March 2, 2023 - 2:42PM

I liked your story, James. I'm a longstanding member of both the International Motor Press Association and the New England Motor Press Association, focused on creating EV content. I attend multiple meetings each month with both groups, where manufacturers come to educate content creators, show off their vehicles, and offer test drives. Most manufacturers also supply the media with test vehicles. I've never seen a Lucid Air in person in my life. I've never met with or been introduced to a Lucid public relations person, and I have never driven past a Lucid retail location (I reside in Metro Boston). Raising awareness for the Lucid brand would be easy. Lucid need only reach out to the motor press and allow them to do their jobs. I have a 48-amp EV changer in my garage awaiting a test vehicle from Lucid.

Troy Mix (not verified)    March 3, 2023 - 9:27AM

I recently moved to Seattle, then and only then had I noticed Your vehicle... Driving past a dealership I saw a vehicle I had never seen before... not sure about price points but you have to advertise!

A Current Owner (not verified)    March 3, 2023 - 8:13PM

I would think an additional avenue of raising awareness would be for Lucid to engage the current vehicle owners, to assist in organizing local communities. These communities would partner current owners and Lucid agents with people having an interested in the vehicles and what differentiates them versus competition.

Being able to see actual owners with actual cars up front and in person would go a long way to increasing awareness and excitement.

As a current vehicle owners myself, I am approached by strangers all the time, curious about the brand, and dishing out many compliments on the car.

Hubert Bromma (not verified)    March 4, 2023 - 4:32PM

Lucid management must pay attention to the delivery and maintenance issues. Quality control is lacking causing many returns to overwhelmed maintenance shops in California, as an example. Registry of cars in states where Lucid has no presence is bewildering.

The alliance with Bank of America for leasing is fraught with difficulties and poor customer service.

There is mostly lip service given to unhappy consumers despite those consumers bring very happy with the Lucid product generally.

Once Lucid management sorts these issues, the company will enjoy better success.

Jeff Donahue (not verified)    March 24, 2023 - 1:14PM

Agree fully with need for wider Lucid awareness. We live in Santa Barbara, a real car area. We have had our Lucid Touring for a week - people love it but don’t know what it is. FYI, our car is in perfect shape and has zero cosmetic or functional problems. Pleased to see Apple CarPlay added yesterday. More studios will definitely be needed. Would help to publish future plans about this.

sohail hassan (not verified)    March 25, 2023 - 4:19PM

Brand Awareness will be better who have driven and believe in the car. Local ambassadors who have driven the car are needed. A token of appreciation for the people who volunteer their time to help LUCID awareness may be the right strategy. Tesla did the same. NOT an OSCAR ad but believers in car sells more car.