Lucid soldiers on with only full-size models for now
EV startup Lucid has delayed the launch of the Cosmos, its first midsize vehicle, to 2027. We expected the automaker’s new electric SUV to be revealed sometime this year, but new CEO Silvio Napoli doesn’t want to rush the vehicle to market and repeat the quality mistakes made with the larger Air and Gravity. The CEO confirmed this plan in an earnings call this week, amid the company’s restructuring plan to save costs. That comes after Lucid Motors posted a second-quarter net loss of $1 billion.
Related: Lucid’s Cheaper Electric SUV Spied Testing Beside Tesla Model Y
The Wait Continues For A Major Tesla Model Y Rival
Lucid
For years now, we’ve been waiting for an electric SUV to legitimately challenge the Tesla Model Y at the top of the sales charts in the United States. Despite the Model Y’s advancing age, that simply hasn’t happened—it’s still by far the best-selling EV in the country.
The Lucid Cosmos is expected to have a starting price of just below $50,000, placing it in direct competition with mid-range Model Y variants. This will be Lucid’s first mainstream vehicle after the full-size Air sedan and Gravity SUV, significantly broadening the brand’s footprint. But Napoli wants to make sure this key model’s launch proceeds without any hiccups, which is why that will only happen next year.
Lucid
“My objective is to launch the car when it is ready with top quality,” Napoli said in an earnings call, reports Automotive News. “In the past, mistakes were done. I want to make sure they’re not repeated here.”
Lucid previously experienced a range of software, hardware, and mechanical issues with the Air and Gravity. The 2022 Air sedan was recalled 14 times alone before the company smoothed out some early mishaps.
With the extra time, Lucid can ensure its new Saudi Arabia factory is ready to produce the Cosmos, but that also depends on supplier readiness in the area.
Related: Lucid vs Tesla Reliability: Range Is Easy, Trust Is Harder
Lucid Suffers Heavy Q2 Losses
Gabriel Ionica
The financial stability of Lucid has been under intense scrutiny for months now. That hasn’t been helped by the company’s Q2 net loss of just over $1 billion, up from $539 million a year earlier. Lucid has now set in motion a plan to save $1.4 billion in cash this year. This will include $500 million in capital spending, approximately $200 million in operating expenses, and $600 to $800 million from reducing inventory.
As a result, Lucid will cut production of the existing Air and Gravity in the second quarter. This will better align production volume with customer demand.
“We need to be direct about the scale of the challenge. Lucid continues to consume a significant amount of cash each quarter,” Napoli said. “That level of cash burn is not sustainable and bringing it down is an immediate priority.”
What It Means
Kyle Edward
For now, Tesla’s reign as the EV sales leader isn’t under threat in the United States. Even if Lucid had launched the Cosmos later this year, it would have needed some time to ramp up production. Instead, Rivian has pipped Lucid by successfully getting its first mainstream EV off the ground, that being the boxy R2.
Lucid’s short-term plan must focus on improving its financial stability, while simultaneously readying the factory and supply chain for the Cosmos. The Air and Gravity are fantastic EVs that have impressed us with their long range and superior comfort. Based on those models, expectations for the Cosmos remain high, but buyers will need to be patient.
