-
Lucid could take too much time to bring more affordable models to its range.
-
A new partnership with Uber for a luxury Robotaxi program will help stimulate sales.
-
Rivian is better positioned to survive and prosper.
-
10 actions that we love better than Rivian Automotive ›
Rivian Automotive (Nasdaq: Rivn) And Lucid group (Nasdaq: Lcid) Were two starting electric vehicle companies (EV) with a lot of potential several years ago. The world was in the middle of an EV cycle, because many early adopters rejected TeslaThe main EV and others offers alternatives.
Rivian and Lucid focused on different consumer markets. Lucid’s luxury aerial sedan had a main battery range and performance technology. This came with a high price, however, leaving only rich consumers as target. Rivian began to offer what Tesla did not do – electric vans and a large SUV.
Tesla is no longer the only game in town for buyers of electric vehicles. However, neither Rivian nor Lucid are sure of having lasting success. A manufacturer of electric vehicles, however, seems to have a much clearer route to profitability.
With a Lucid Air sedan of the 2026 model year from a price north of $ 70,000, it is clear that it will not be an EV of the general public. Lucid even offers a fully equipped sapphire model for $ 249,000. On the surface, this may seem a losing proposal for investors, but it is a business model that worked for Tesla. Tesla’s idea was to start selling a relatively low volume of the Luxury Model S and its Luxury Model X SUV to show its EV technology and develop a main suite.
Tesla pivoted the most affordable Y and 3 models, for which he quickly accelerated production. This led to the outbreak of world sales. Consider that Tesla produced more than 500,000 electric vehicles in 2020, the year it began to sell the popular Y model. Lucid began to sell its Gravity SUV this year and still expects the production of 18,000 and 20,000 vehicles in 2025. A low -cost model is planned for the end of this year, but even that the tour model will be evaluated at $ 80,000.
The slow sales volume ramp helps to explain why lucid actions had trouble. The company has spoken of future plans for more affordable models, but it can take too long to get there. Lucid continues to bleed in cash with an operating loss of approximately 1.5 billion dollars in the first half of 2025.
Lucid can manage these losses for the moment. He has financial support from his biggest shareholder, Sovereign Wealth Fund of Saudi Arabia. He also recently announced the end of an investment of $ 300 million Uber technologies. The two companies will join a global high-end Robotaxi program which will also help stimulate lucid sales beyond its direct consumers.
