Luxury EV maker Lucid Beats Delivery Estimates with Price Cut, but Production Slows

Shares of Lucid Group ( LCID ) rose on Tuesday as the luxury electric vehicle (EV) maker delivered more vehicles than expected in the first quarter as it cut prices, even though production slowed.

The Air sedan maker reported a record quarterly delivery of 1,967, beating its previous mark of 1,932 set in the fourth quarter of 2022, and exceeding forecasts by about 220.

Sales were helped by a February price cut, which cut the cost of its vehicles by up to 10%, and its lowest-priced EV, the Air Pure, starting at $69,900.

However, first-quarter production fell to 1,728, some 400 below estimates and well below the previous quarter’s 2,391. The company has predicted that it will make 9,000 EVs this year.

Last month, Lucid received a boost from an additional $1 billion investment by its largest shareholder, Saudi Arabia’s Public Guarantee Fund.

Lucid shares were up 3.6% at $2.74 around 1:50 pm ET. The stock has lost about 30% of its value since the start of the year, and nearly two-thirds of its value over the past 12 months.