BENGALURU: Electric automaker Lucid posted a 58 percent jump in first-quarter deliveries on Wednesday as it lowered prices of its vehicles, while peer Rivian Automotive reported a 36 percent decline.
The Public Investment Fund-backed Lucid has also offered incentives including cheaper financing to woo customers away from less expensive hybrid vehicles amid high interest rates.
However, the company estimated revenue between $232 million and $236 million for the first quarter ended March 31, below Wall Street estimates of $256.3 million, according to LSEG-compiled data.
Shares of Lucid and Rivian were down around 5 percent in extended trading.
Lucid delivered 3,109 vehicles during the first quarter, compared with 1,967 in the same period last year. It produced 2,212 vehicles during the quarter ended March 31, up 28 percent, with more than 600 additional vehicles in transit to the Gulf country for final assembly.
Rivian has been battling tough demand as consumers opt for cheaper hybrid and gas-powered vehicles in an uncertain economic and political environment.
“I would say the sector at the moment is out of favor. Over the medium to long term, EVs are still inevitable, and so it’s just going to take some time for these companies to continue to ramp up,” said Andres Sheppard, senior equity analyst at Cantor Fitzgerald.
Rivian CFO Claire McDonough had said in February vehicle deliveries would be lower this year due to soft demand, partially because of the impact of fires in Los Angeles.
Demand could be further pressured as US President Donald Trump’s tariff policies are expected to accelerate inflation and increase prices of automobiles, making consumers wary of committing to big purchases.
Rivian CEO RJ Scaringe had said earlier this year the company expects higher costs from tariffs on Mexico and Canada as it has a supply chain footprint in these countries.
The company delivered 8,640 vehicles in the quarter ended March 31, down from 13,588 a year earlier. But the deliveries exceeded analysts’ estimate of 8,200, according to Visible Alpha.
Rivian produced 14,611 vehicles in the first quarter, compared with 13,980 a year ago. It reaffirmed its annual deliveries forecast.
Lucid and Rivian will report their first-quarter results on May 6.
In January, Lucid Motors has become the first global automotive company to join the Kingdom’s “Made in Saudi” program, which grants the firm the right to use the “Saudi Made” label on its products.
Lucid’s participation in the program follows the launch of its first international manufacturing plant in Saudi Arabia in September 2023.
Located in King Abdullah Economic City, the facility is the Kingdom’s first-ever car manufacturing plant and can currently assemble 5,000 Lucid vehicles annually during its first phase.
Once fully operational, it is expected to produce up to 155,000 electric cars per year.
