Nearly One in Five Lucid Employees to Get a Pink Slip
Though it has earned near-universal praise for its debut sedan, the Air, Lucid is having trouble finding traction with the ultra-expensive EV. Earlier this week, the automaker announced a restructuring effort that involves almost a fifth of its workforce. After a disappointing 2023 production forecast, Lucid is looking to cut costs as uncertain economic times are ahead.
The affected employees will learn their fate by the end of the week, and company CEO Peter Rawlinson said Lucid would cut jobs in nearly every part of its operations, including higher-ups. Reuters reported that the layoffs would cost Lucid between $24 and $30 million and would be complete by the end of the second quarter.
Some electric vehicles have seen significant price cuts over the last few months, putting pressure on high-end cars like the Air. Lucid offers a $7,500 credit for some models, but that’s small comfort when its cheapest car starts at $87,400, and the top model costs $249,000.
Rivian, whose vehicles are also on the pricier end of the spectrum, said it would lay off six percent of its workforce last month. Its workforce of 14,000 is around twice the size of Lucid’s. Still, the company is also faced with needing to conserve cash and has cited price cuts and other economic uncertainties as causes of its headcount reduction.
[Image: Lucid]
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Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
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Lets be honest, Lucid will not be around in five years. It does not matter that it is probably the world's best EV sedan. Lucid's manufacturing and marketing is a complete mess. The truth is most EV companies are going under within the decade.
If you don't make your own battery cells in the EV space, you are, as Ozzy Man would say, headed for Destination F-cked.
From the sound of it, Lucid is changing and updating parts similar to Tesla in their early stages. I thought the company would have learned to be better then Tesla. I'm rooting for them even though I detest electric vehicles. I hope Tesla goes under as the big giant head is a mouthy liar and the cult that follows him is putrid
Does this not sound and feel like the dawn of ICE automobiles in the early 20th century, but at double or triple speed!!
There were a bunch of independent car markers by the late 1910’s. By the mid 20’s, we were dropping down to 10 or 15 producers as Henry was slashing the price of the Model T. The Great Depression hit, and we are down to the big three and several independents.
For EVs, Tesla bolted out of the gate, the small three are in a mad dash to keep up. Europe was caught flat footed due to the VW scandal. Lucid, Lordstown, & Rivian are scrambling to up production to generate cash. Now the EV leader has taken a page from the Model T and slashing prices putting the rest of the EV market in a tail spin.
Deja vu……