08.14.23
Lucid Q2 earnings results were Announced last week.
The results were a disaster, roughly 25% below expectations both on Revenue $150m vs $200m expected and EPS -$0.42 vs -$0.33 expected.
Stock however, took a nice leap above 10% immediately, although it has nearly lost all gains by now.
The good news however was...
1. Guidance reiterated for 2023 production target of 10k vehicles.
2. Lucid raised $3B securing a cushion for a while.
3. Lucid reduced current offered model prices by $12.5k, 10-13%, including the Lucid Air pure AWD, now at $83k, priced to compete with the Tesla Model S. This obviously hurts the already huge negative margins but positive for Sales, Revenue, Production and reducing a huge inventory.
These prices are as low or lower then original reservation holder prices a few years ago, obliterating the early reservation advantage.
Now the Air Pure AWD, $83k, 410 miles range, 3.8 sec 0-60 mph is beating in price and range, the Model S at $91k, although Inventory prices are discounted at up to 9% off at $83k.
The model S features 405 miles range, 3.1 sec 0-60 mph.
The first time Lucid revealed the Air, 3 years ago at a future starting price of $77.4k (which is now exactly the price of the Pure RWD coming soon), Tesla went into a frenzy of Model S price cuts.
That resulted in the famous MSLR for as low as $69,420, for a short few months before the refresh and then the "Supply chain", "COVID rebound", "Inflation" price Surge of 2021-2022 raised the price to near $100k.
I would not be surprised if MS will drop another $10k or so shortly.
Surprisingly, however is the Lease prices by Lucid are extremely favourable.
A Lucid Air Pure AWD priced $83k, is offered at $7.7k due at signing + 36 months at $750 which means Lucid either expects a 60%+ residual value after 3 years or is trying to move inventory at any cost.
A similar Tesla MSLR from inventory at $83k, the lease terms are $9.3k due at signing, + 36 months of $1120 payments. This leads to an estimated residual value of only 40%, meaning Tesla is not as near desperate as Lucid.
Of course, for a deeper comparison between the two, the Lucid is considered a slightly more luxurious, however, this Lucid entry model lacks any upgrades.
The Tesla has to its advantage slightly better performance, access to Super charger network, bigger, yet over whelmed Service network, Autopilot included, FSD hardware included, FSD upgrade option and sentry mode.
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