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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via Autobuzz Today
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