Lucid Motorsone of Tesla’s rivals in the electric car market, lay off 18% of its employees. The measure affects some 1,300 workers and is part of a broader effort to cut operating expenses. As reported The Wall Street Journalthe decision also aims to preserve the company’s cash reserves, ahead of the launch of a new vehicle in 2024.
The aforementioned medium ensures that the personnel cut will impact Lucid’s operations in the United States and will be completed by the middle of this year. The curious thing is that layoffs are so widespread that They will also cover some executives from the California-based company..
The decision to reduce the staff was informed through an email signed by Peter Rawlinson, CEO and Chief Technology Officer of Lucid. In this way, the company begins to make effective the cut in expenses that it promised last month, after a disappointing projection was known for the total number of electric cars to be manufactured this year.
Lucid Motors aims to produce no more than 14,000 units of the Airits luxury sedan, in the course of 2023. The figure goes hand in hand with a drop in reservations for the car, indicates the wsjwhich as of February had decreased by 24% compared to August 2022.
Before tackling the layoff of 18% of its staff, the electric car maker tried to cut costs in other ways. Especially when it comes to shipping and spare parts. However, this effort it would not have been enough to balance its economy with a view to future projects.
Lucid follows the path of Rivian, who had also announced layoffs
The Lucid Motors thing is not an isolated case in the world of electric automotive. At the beginning of February it was learned that Rivian would lay off 6% of its workforce – some 840 employees, approximately – in order to cut expenses. Which makes it clear that the panorama of startups dedicated to the manufacture of electric cars today is far from ideal.
From Lucid they assure that the uncertainty of the automotive market is one of the most important concerns they face. To which is added a shocking “leak” in its holdings of cash and cash equivalents. The same fell more than 45% between September and December of last yearwhen they went from 3.860 million dollars to 1.740 million dollars.
In fact, lucid He went out to raise financing in December. The company closed a round of investment of 1,500 million dollars, of which more than 900 million were contributed by the Public Investment Fund (PIF). That is, the Saudi sovereign fund that already owns 62% of the company.
Lucid Motors’ plans for the future are ambitious. Beyond continuing production of the Lucid Air, the spotlight is set on the arrival of Gravity, its first electric SUV. The company’s promise is that it will reach buyers from 2024, although its technical specifications are not yet precisely known; nor has its price been revealed.
Of course, the success of Lucid Gravity will depend on how strong its manufacturer remains throughout this year. The Californian firm ensures that the funds available today are sufficient to finance its operations until the first quarter of the coming year.