All levels of the electric car company's personnel, including staff and contractors, will be affected.
The company is having difficulty constructing cars to meet the demands of customers; in February it reported 28,000 reservations but only projected to produce 10,000-14,000 vehicles in the upcoming year. This would be great progress from the 7,180 models produced this past year--with over 4,300 ultimately delivered.
Lucid, the EV startup that rivals Tesla with its Air sedan, has made known that it is forced to let go of around 1,300 of their staff members, which is roughly 18% of the company. Furthermore, as implied in an email from CEO Peter Rawlinson accompanying a regulatory filing, employees and contractors are not exempt “in nearly every organisation and level, including executives.”
Rawlinson has revealed that layoffs will occur within the next three days, and they are estimated to be finished by the end of June 2023. Those affected will be provided with career resources and healthcare coverage continuation paid for by Lucid. Additionally, the firm is expected to spend between $24 million to $30 million in costs such as payoffs, benefits, and stock-based compensation for transitioning employees.
For Lucid followers, this is on par with the cost-saving announcement that was released in February when they revealed their FY2022 finance report, which showed expenses of $2.6 billion. Rawlinson stated the job cuts bring this into perspective.
This week, Lucid reported another setback, recalling around 600 vehicles to address an issue that could lead to the cars losing power. Unfortunately, they are not alone in their struggles; Ford has laid off thousands of workers during the past year, GM is attempting to reduce its budget by $2 billion with buyouts, Stellantis has announced plans to shutdown a plant, Tesla has carried out layoffs, and other startups such as Arrival and Rivian have trimmed their staff numbers.
Lucid Motors Apple CarPlay Integration
Lucid Motors recently released their flagship Air sedan, two years ago - and now they are finally delivering on the promise of all four original trims. That's been resolved now, as Lucid has confirmed that CarPlay will come standard with each trim.
BlackRock Is Buying Up Lucid
BlackRock has placed a large wager on Lucid Motors ($LCID). The investment giant is taking a sizeable stake in the electric vehicle (EV) maker. It's clear that BlackRock believes Lucid Motors shares can deliver solid returns, and they're positioning themselves to take advantage of the potential upside.
Lucid Rise 98% On Saudi Investment Rumour
Lucid Motors, an electric vehicle (EV) manufacturer, has seen a surge in stock prices by 98% to $17.81 which later drop back 43% to $12.87, this is based on reports that Saudi Arabia's Public Investment Fund (PIF) is planning to purchase the remaining stake in the company. This news suggests that Lucid will now be owned entirely by PIF.
Can Lucid EV Price Cut Save The Company in 2023!
Lucid is providing a generous discount of $7,500 on leased Air sedans in response to Tesla's recent price reductions. Tesla caused a stir in the auto industry last week when their prices were slashed by as much as 21%. Tesla was able to afford this dramatic change, which others like Lucid, Rivian, Poletsar, NIO may not have the privilege of doing.