Lucid Motors set an organization file for deliveries within the first quarter of 2025, transport 3,109 EVs to consumers in North The united states, Europe, and Saudi Arabia. It sounds as if {that a} new corporate automotive program and gross sales to condo fleets helped it get there.
In step with a footnote in Lucid Motors’ latest regulatory filing, it offered the similar of round 300 vehicles to what it refers to as “condo corporations” within the quarter. Nick Twork, a spokesperson for Lucid Motors, mentioned in an electronic mail that regardless of using the time period, the “overwhelming majority” of the automobiles referred to within the footnote had been offered to leasing corporations and leased again to the automaker as a part of a remodeled corporate automotive program.
“As a part of the traditional direction of industrial, we leverage fleet transactions on every occasion we see a just right alternative this is in the most efficient pastime of our industry,” he mentioned.
The primary-quarter gross sales to leasing and condo corporations allowed Lucid Motors to overcome the selection of vehicles it delivered within the fourth quarter of 2024 by way of 100 automobiles, marking the 5th consecutive quarter that the corporate’s deliveries larger. That is even supposing the start of the calendar yr is continuously a difficult stretch for car gross sales; trade leaders Tesla and Rivian, as an example, each and every noticed dramatic drops in deliveries to begin the yr.
Lucid’s stretch of file quarters follows years of the corporate suffering to ascertain a marketplace for its luxurious sedan, the Air. The corporate has pinned top hopes on its first SUV, the Gravity, which it expects to send in better volumes in the second one part of this yr.
Meantime CEO Marc Winterhoff celebrated the milestone initially of the corporate’s profits name ultimate week. “Lots of our consumers proceed to let us know that after they enjoy a Lucid, it’s arduous to return,” he mentioned.
Parsing the numbers
It’s tough to mention precisely what number of vehicles Lucid has offered to leasing and condo corporations. The corporate declined to damage down the numbers made to be had in its regulatory filings. To this point, it has handiest reported the buck worth of automobiles offered on this approach.
Lucid mentioned within the first-quarter submitting that it offered $27.2 million value of automobiles to “condo corporations” within the first quarter. Dividing Lucid’s income for the quarter ($235 million) by way of the deliveries (3,109) suggests the corporate’s moderate promoting worth within the length might be round $75,590, which suggests it offered as many as round 360 EVs to condo and leasing corporations.
Regardless of the precise quantity, it kind of feels to be an uptick. For reference, the corporate wrote that it offered $34.7 million value of vehicles to condo corporations in all of 2024. In a previous filing, Lucid mentioned it offered $9.1 million value in 2023.
Whilst the gross sales will have helped the quarter’s supply tally, they don’t seem to have had an affect on what quantity of money the corporate made.
Lucid says in different places within the regulatory submitting that it does now not in an instant e-book income at the vehicles it sells to condo corporations as it’s obligated to repurchase the ones automobiles at a later date. Lucid handiest books income at that time — or even then, it handiest books the adaptation between the preliminary sale worth and a repurchase worth agreed upon with the condo corporations as income.
It’s no secret Lucid has been running with condo corporations. The corporate introduced in October 2024 that Germany-based Sixt used to be starting to use Lucid Airs in its fleet of condo automobiles. It additionally has a take care of Endeavor that has been much less publicized. However till the newest regulatory submitting, it’s been arduous to quantify how a lot affect the condo gross sales had been having on Lucid’s total supply figures.
Assessing the client call for for Lucid’s automobiles is a very powerful for the reason that corporate’s first EV, the Air, has struggled to reside as much as expectancies for numerous causes. The corporate began promoting the Air in 2021 at a time when sedans had fallen out of style in North The united states. Lucid first of all occupied with the costliest variations of the Air around the first two years of gross sales.
As the ones gross sales slowly climbed, Tesla started slashing costs by itself automobiles to be able to take care of the expansion it had promised Wall Side road. The ones worth cuts led to a domino impact for different automakers promoting EVs. By the point Lucid began transport probably the most inexpensive model of its sedan — the Air Natural — in past due 2023, it made a couple of worth cuts to stay gross sales aggressive.
Former CEO Peter Rawlinson — who used to be changed previous this yr after he stepped down from the position — said in 2023 that “[t]oo few persons are conscious about now not simply the auto, however even the corporate.”
Winterhoff, the meantime CEO, has mentioned since he took over that he desires to make stronger Lucid’s advertising and marketing efforts. The corporate spent $3.5 million on gross sales and advertising and marketing within the first quarter, and on ultimate week’s name he mentioned buyers must be expecting that to extend.
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