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Cost Cutting · EV · Layoffs · Lucid Motors
Lucid Motors announced a restructuring plan, cutting approximately 400 employees, or 6% of its workforce, by the end of Q3, incurring $21 million to $25 million in severance costs, as the company optimizes resources amid a general slowdown in EV demand.
Lucid Motors CEO Peter Rawlinson communicated the job cuts via email to employees. The company recorded record Q1/2024 delivery figures, up 39.9% year-over-year, but absolute sales of 1,967 vehicles represent only 0.5% of Tesla's 386,810 vehicles sold during the same period.
Lucid currently sells only the Lucid Air but plans to start production of the Lucid Gravity SUV by late 2024 and a mid-size EV by late 2026, targeting an attractive base price of around $48,000. Rawlinson stated the Gravity's total addressable market is six times larger than the market the company accessed in 2023, when it sold 6,001 vehicles.
The company emphasizes protecting current operations to fund these opportunistic future projects and commercialize them perfectly. Other EV makers like Tesla and Rivian also implemented job cuts previously.