EV maker Lucid beats first-quarter delivery estimates as price cuts boost demand

(Reuters) -Lucid reported first-quarter deliveries above market expectations on Tuesday as price cuts helped boost demand for its luxury electric sedans, sending its shares up about 4%. The company handed over 1,967 vehicles in the first quarter, compared with estimates of 1,745, according to eight analysts polled by Visible Alpha. Lucid’s deliveries remained resilient after the electric vehicle startup cut prices of its flagship Air sedans by 1% to 10% in February.

However, demand for EVs overall has been slowing in the U.S. owing to high interest rates and relatively elevated ownership costs, compelling buyers to turn towards more affordable hybrid alternatives. EV giant Tesla reported a quarterly decline in deliveries for the first time in nearly four years earlier this month and missed Wall Street estimates.

Lucid made 1,728 vehicles in the first quarter ended March 31, below estimates of 2,123, and compared with 2,391 in the preceding three months. The EV maker said in February it plans to introduce a mid-size car late in 2026 to attract a broader customer base, while Reuters reported last week that Tesla scrapped plans for its inexpensive car. Lucid CEO Peter Rawlinson said the new vehicle will target a $50,000 price point, a highly competitive pricing range that includes Tesla’s Model Y electric vehicle. The company said last month it is raising $1 billion in capital from Ayar Third Investment Company, an affiliate of Saudi Arabia’s Public Investment Fund. The capital injection boosts Lucid’s funds, giving the firm an advantage over other cash-strapped EV startups burning through cash as they ramp up production.

Lucid’s deliveries mirror that of sector peer Rivian Automotive which also beat estimates for quarterly deliveries fueled by strong demand for its electric pickup trucks and SUVs.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Vijay Kishore)