Lucid Motors sets record as Gravity sales pick up and tax credit expires

In an impressive showcase of growth, Lucid Motors reported delivering 4,078 vehicles in the third quarter, a significant milestone attributed to the increasing availability of its Gravity SUVs and a surge of customers eager to benefit from the soon-to-expire federal electric vehicle (EV) tax credit. Despite these positive figures, the Saudi-backed luxury electric vehicle manufacturer remains far from the ambitious targets it set during its public debut in 2021, a move that generated $4 billion in capital. However, the latest delivery numbers highlight a steady upward trend, marking the seventh consecutive quarter of increasing sales for the company. Lucid Motors is not alone in reaping the benefits of a booming EV market; Tesla recorded its best quarter ever, while established automakers like Ford and General Motors also reported substantial sales growth. Rivian, despite forecasting a challenging year ahead for total EV deliveries, also experienced a notable increase during this quarter. The effect of the expiring federal EV tax credit on Lucid's sales remains difficult to assess, especially as only customers leasing vehicles were eligible for the incentive. Additionally, it remains uncertain how many of the delivered vehicles were Gravity SUVs versus the company's initial model, the Air sedan. Lucid Motors is expected to disclose its complete financial results for the quarter on November 5. Since its public listing, Lucid Motors has faced challenges in generating consumer interest in its luxury EV offerings, with former CEO Peter Rawlinson acknowledging the need for enhanced marketing strategies. Earlier this year, the company appointed actor Timothée Chalamet as its first global ambassador to boost visibility. Lucid Motors has also explored alternative sales avenues, benefiting from rental and lease agreements in various quarters. With approximately 60% ownership by Saudi Arabia through its sovereign wealth fund, the company is focusing on expanding its presence in the Saudi market, having manufactured over 1,000 vehicles specifically for the region. Plans are in place to establish a full-scale factory there as well. In an unexpected partnership, Lucid Motors has secured future demand from Uber, which recently announced a commitment to purchase at least 20,000 Gravity SUVs over the next six years. These vehicles are intended for use as robotaxis within Uber's network, with Lucid working to incorporate technology from the autonomous vehicle company Nuro into the SUVs.