Lucid shares slip 10% as Q2 deliveries come in well below estimates

Shares of Lucid Group Inc (NASDAQ: LCID) ended more than 10% down on Wednesday after the luxury electric vehicles maker reported weaker-than-expected deliveries for its second quarter.

Lucid shares hit on weak deliveries

The automaker said it delivered 1,406 vehicles in total – a marginal but a decline nonetheless versus the first quarter. More importantly, analysts had forecast Lucid to deliver around 2,000 vehicles in Q2.

Its Air sedan offers luxury as well as the longest range versus any other electric vehicle that’s currently available in the United States. The downside – it’s expensive at nearly $93,000.

Lucid does plan on introducing a lower-priced variant soon but for now, it looks like the price cuts from rival Tesla Inc weighed on demand for its vehicles.

Lucid shares are still up roughly 15% year-to-date.

Lucid reports sequential decline in production

On Wednesday, Lucid disappointed in terms of quarterly production as well.

The Nasdaq-listed firm manufactured 2,173 Air sedans in the second quarter versus 2,314 in Q1. Earlier this year, it revealed plans of making up to 14,000 vehicles only in 2023 even though it had more than 28,000 reservations on hand.

Lucid Group, at the time, said it will focus on marketing this year, suggesting it may be facing difficulties in converting reservations to sales. On the plus side, though, the EV firm recently announced a game changer deal with Aston Martin as Invezz reported here.

The California-based company will report its Q2 financial results on August 7^th. Ahead of it, Citi analysts resumed coverage of Lucid shares with a “neutral” rating last week.