EV brand is losing a FORTUNE on each vehicle it builds – here’s what it means for industry | The Sun

AN up-and-coming EV brand is reportedly losing a fortune on each vehicle that it builds – here's what it means for the industry.

The California-based start-up was seen as a potential rival for Tesla but now seems to be in financial trouble.

Lucid Motors, founded in 2007, is losing thousands on each on each one of its Air models it builds, according to a report from Bloomberg.

The company launched the Air in 2021 to compete with the Tesla Model S in the luxury EV market.

It is priced largely in line with the Tesla, with top-of-the-range examples of both clocking in at around £113,000.

However, the report suggests that, in order to maintain competitive pricing, the company is coming up short to the tune of around £280,000 per car.



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It is not uncommon for start-ups to lose money on their products initially, but Lucid's numbers are large enough to cause concern.

For comparison, another EV start-up, Rivian, loses an estimated £90,000 per motor.

The figures suggest that Lucid has seen over £1 billion evaporate this year alone, while it reported a £2.1 billion loss last year.

This is apparently in large part due to a significant drop off in the number of cars produced leading to the company missing its production targets.

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Lucid's share price has also dropped almost 30% this year alone to £4 per share, well below its peak of £45 per share back in 2021.

The financial woes are a major concern for the firm, especially given their previously announced plans to expand to the UK and Australia after 2025.

Lucid has been contacted for comment.

It comes after new research revealed that more than half of Porsche EV drivers want to switch back to petrol for their next car.

Meanwhile, a popular brand had hundreds of motors recalled over fears of defective airbags.

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