Lucid Motors has just made a significant announcement regarding a reduction in its US employee and contract workforce, impacting employees at all levels, including leadership and mid-level management. The reduction in force will not affect the hourly manufacturing and logistics workforce. This move has been described as a difficult decision that was not taken lightly, with the company extending severance and health benefits to the impacted employees and offering them outplacement services.
Despite this reduction in workforce, Lucid Motors remains focused on achieving its ambitious goals. The company aims to deliver the world's best SUV and dramatically expand its total addressable market, even though it is not currently generating revenue from the program. The organization is optimizing its resources to position itself for future success and growth opportunities.
One of the key factors that will determine Lucid's success as a business is its ability to sell Lucid Air sedans. Despite a slowdown in sales in the broader EV segment, Lucid Motors achieved an all-time delivery record last quarter and has seen that momentum continue into Q2. The company is focused on accelerating new customer acquisition and expanding awareness for its flagship vehicle.
Additionally, Lucid Motors is striving to stay on track for the Gravity SUV program to start production at the end of 2024 and its midsize program in late 2026. The company anticipates that its SUV and midsized vehicles will be the best in their segments.
Furthermore, maintaining strong cost discipline is emphasized as crucial, given the company's funding to support the next phase of its business. Lucid Motors is committed to being responsible with its resources and exercising strong cost discipline.
Despite the difficult decision to reduce the workforce, Lucid Motors remains optimistic about its future. The company continues to innovate and is confident in its ability to make the world's most advanced electric vehicles. The superior technology, design, and performance of its vehicles have been well-received by consumers and recognized by industry critics.
Today the company's shares have moved -2.2% to a price of $2.66. For more information, read the company's full 8-K submission here.
