Shares of Lucid Group (NASDAQ:LCID) are in the red following an announcement that the company would drop the prices for its Air models. Lucid’s Air Pure will not start at $82,400, reflecting a $5,000 discount from $87,400. Meanwhile, prices for the Air Touring and Air Grand Touring both dropped by $12,400.
The Air Touring will now start at $95,000, while the Grand Touring will start at $125,600. According to Reuters, these discounts will be “valid as long as supplies last.”
These price cuts were likely made in order to stay competitive with other electric vehicle (EV) companies, as price cuts have been a central theme this year.
LCID Stock: Lucid Cuts Air Prices Ahead of Earnings
The Lucid Air Pure, which competes directly with Tesla’s (NASDAQ:TSLA) Model S, is now priced cheaper than the standard version of it. Following price cuts earlier this year, the Model S starts at $88,490, while the Model S Plaid starts at $108,490.
Across the EV industry, price hikes set earlier over the past two years. This was largely due to supply chain issues and shortages that have now largely been fully or partially offset. This has been attributed to falling demand and rising interest rates, which makes buying vehicles through loans more costly.
Meanwhile, Lucid has confirmed that it will report its second-quarter earnings after the market close today. During the quarter, Lucid produced 2,173 vehicles and delivered 1,404 of them. That’s compared to production of 2,314 vehicles and deliveries of 1,406 vehicles during the first quarter. Noticeably, both production and deliveries fell during the second quarter, which isn’t a good look for the company.
For Q2, Wall Street analysts have forecasted revenue of $205 million. This would signal year-over-year (YOY) growth of 110.62% and quarter-over-quarter (QOQ) growth of 37.19%. Lucid’s adjusted EPS loss is expected to be 33 cents, compared to a loss of 33 cents YOY and 39 cents QOQ. LCID shareholders should also keep an eye out for the company’s guidance.
For the third quarter, revenue is expected to be $239 million. This would reflect YOY growth of 22.30% and QOQ growth of 16.6%. Shareholders should react favorably to a beat on revenue guidance, if provided, as the forecasted Q3 revenue shows a fifth consecutive quarter of declining YOY growth.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
