Lucid Cuts Workforce

Electric-vehicle startup Lucid is laying off 1,300 employees, or 18%, of its workforce.

The luxury sedan maker and other EV startups have been challenged by the increasingly competitive EV market, where legacy brands are gaining share and market leader Tesla started a price war by cutting its model prices after the new year.

Lucid’s orders fell steeply in the fourth quarter, when it delivered significantly fewer units than it produced: 3,493 compared to 1,932 delivered. It 2023 production guidance tops out at 14,000 vehicles, far short of analyst expectations.

"As we look ahead to 2023, we'll continue to focus on strong capital discipline, leaving no stone unturned for every cost optimization,” said Chief Financial Officer Sherry House in a statement on fourth-quarter and 2022 results and its 2023 forecast.

“We are proud of our technology and product achievements. We're gearing for growth, while simultaneously taking a comprehensive look at reducing costs, and I'm very excited about the opportunities that lie ahead of us."

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Originally posted on Auto Dealer Today