Is Lucid going to survive?
The business Lucid Motors attracted a lot of attention as Tesla’s main rival going forward. They officially confirmed this allegation by introducing Lucid Motors, a Tesla rival.
Yet Elon Musk just revealed that the business is closing and coping with orders being canceled.
Being the next great thing in the automotive industry, the company’s abrupt fall is rather unexpected.
Experts advised Tesla to create a Lucid Motors defensive plan.
As a result of dealing with order cancellations, the corporation has come up with a fairly aggressive plan.
It has been putting pressure on its retail workers to change the orders that were canceled.
Moreover, it now gives all customers a 10% discount at checkout. Elon Musk tweeted about the company’s short lifespan as a result of this.
Many currently believe that the electric car industry is quite competitive. The success of Tesla does not guarantee that other businesses will follow suit.
Old customers are irritated by Lucid Motors’ requirement that its retail personnel phone clients 12 times each day.
The business has instructed its staff to carry out this procedure twice weekly and make sure that everyone who has canceled an order does so again.
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Are Lucid Motors still in business?
Lucid motors are still operating now. Due to consumer cancellations of several purchases, the firm has been experiencing losses.
The firm’s stock price kept declining.
The price of the company’s equities dropped by 30% in the previous month and by 80% over the course of 2022 days.
According to experts, the firm will need investors in order to help it survive.
The owners will need to draw in additional money to boost the scalability.
The IPO offerings from Lucid Motors began in the year 2020.
The enormous volume of bookings made by this firm was one of its key selling points to potential investors.
Due to the enormous number of registrations the firm had for its EV vehicles that had not yet been introduced to the market, investors grew more and more interested in the company.
Yet by 2021, there were 3000 fewer bookings. This indicates that the disparity between the actual and anticipated orders was substantial.
The majority of buyers who booked reservations ultimately ended up canceling their purchases.
Are Lucid motors struggling?
Order cancellations have become a problem for Lucid Motors. This company’s stock has dropped significantly. The business has had problems with both production and software.
According to reports, this company’s vehicles have a problem with vehicles that brake and turn in the incorrect way.
Both defective software and manufacturing-related flaws are to blame for this. The autos are traveling in the incorrect direction as a result of defective software.
According to reports, Lucid Motors is experiencing a difficulty shared by the majority of automakers operating in the EV market.
They presently need assistance with their internal structure and software. The business must still create software that fulfills the features they advertise. Nonetheless, new flaws continue to appear here and there.
Any iOS or Android smartphone connected to the vehicle will display a possible bug. This implies that all of the features that the manufacturers are promoting in the automobile must still be able to be handled and performed.
This automobile has a long way to go before it can be considered a completely capable and usable vehicle.
Do Lucid Motors stocks have a future?
The existing situation suggests that the stocks of Lucid Motors don’t have a bright future. The last several years have seen a decline in the stock value of gasoline.
The stocks of Lucid Motors drew a lot of investors at first because they seemed to be quite promising. The business decided to conduct initial public offerings in 2020.
They had several automobile registrations at the time. The majority of these registrations were, however, terminated over time for several reasons.
Just around one-third of the original registrants were still with the firm. They started using harsh strategies to overcome the problem.
To overturn the cancellation decision, the company’s retail staff was instructed to phone clients 12 times per day, twice per week.
The stocks of Lucid motors are likely to decline in the coming months.
Even Elon Musk recently remarked that the business is in danger of collapsing and won’t be able to survive in the market for very long.
Because of the intense competition in the EV industry, every other business needs assistance to succeed.
About Lucid Motor
According to Wikipedia, American electric car maker Lucid Group, Inc. has its main office in Newark, California. The business was established in 2007.
The first 520 reservation holders began receiving deliveries of the Dream Edition launch models on October 30, 2021.
When Lucid was first established in 2007 as Atieva, its primary goal was to produce electric car batteries and powertrains for other automakers.
The CEO and CTO of Lucid Peter Rawlinson formerly held the positions of vice president of engineering and chief engineer for the Model S at Tesla, Inc. and head of design at Mazda North American Operations respectively.
Investors in the firm include Tsing Capital, Mitsui, Venrock, JAFCO, and others.
In October 2016, the business changed its name to Lucid Motors and made it known that it will be creating an all-electric and high-performance premium car.
On November 29, 2016, state and business representatives announced plans to build Lucid’s US$700 million manufacturing facility in Casa Grande, Arizona.
Starting with 20,000 automobiles and increasing to 130,000 autos annually. The facility was initially planned to have a maximum annual production capacity of 380,000 automobiles.
The company intended to start construction in 2017 and begin producing cars in early 2019 as of November 2016. On September 28, 2021, the first automobiles rolled off the production line.
On September 17, 2018, Lucid Motors said that they were in negotiations for capital worth more than US$1 billion with the Public Investment Fund, the Saudi Arabian sovereign investment fund.
In April 2019, the investment was completed. The funding will pay for Lucid Air’s final engineering and testing.
The first phase of development of its Casa Grande, Arizona manufacturing facility, the start of commercial production of Lucid Air, and Lucid’s global retail strategy, starting in North America.
The first phase of the plant’s construction which started in late 2019 was finished in December 2020.
Construction on the second phase which will double the annual manufacturing capacity from 34,000 to 90,000 automobiles, is now underway.
A total of roughly 400,000 automobiles may be produced annually at the facility after all 4 stages are complete.
Lucid Motors announced in February 2021 that it will combine with publicly listed special-purpose acquisition business Churchill Capital Corp IV in a transaction for US$11.75 billion (SPAC).
CEO Rawlinson outlined Lucid’s plans to start producing its Project Gravity SUV in 2023 and to launch a Model 3 rival by 2024 or 2025.
According to a July 2021 Wall Street Journal article, when Lucid goes public, the Public Investment Fund will hold more than 60% of the business.
Through its investment in Lucid, the fund will make a profit of approximately $20 billion in 2018.
In Arizona, Lucid started producing its first all-electric Air cars in September 2021, and in late October, it began shipping them to consumers.
After cutting its 2022 production forecast from 20,000 cars to 12,000-14,000 vehicles on February 28, 2022, citing supply chain problems, and again to 6,000-7,000 vehicles when it presented its Q2 financial results on August 3, 2022, Lucid manufactured 7,180 vehicles in.
Conclusion
When Lucid Motors first entered the market, it seemed to be a highly promising business that would offer high-quality electric automobiles.
Due to its forward-thinking business practices, it also attracted hundreds of investors. There were a lot of individuals who registered to buy the soon-to-be-released autos since the product also sounded promising.
These registrations led to thousands of dollars in investment for Lucid Motors.
Lucid raised a significant sum of money via their IPO. They formerly had a lot of money and even constructed a new industrial facility.
Nevertheless, these registrations were eventually canceled. Individuals began taking their money or names off the list of registrants.
This was done as a result of concerns about the product, which led to the discovery that the manufacture and software of the automobiles were flawed.
People were reluctant to purchase these autos as a result of these flaws.
Lucid Motors’ prospects are not promising. The business will probably be able to survive on the market for a few years before having to shut down or be acquired.
It can find itself in a death trap if it continues to operate on its own. To escape the quagmire it has gotten itself into, the corporation must make prudent judgments.
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