Lucid to raise vehicle prices after $598 million Q1 operating loss

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Startup electric automaker Lucid Group Inc. on Thursday raised prices for most models from June after it posted a $598 million operating loss for the first quarter.

The automaker said it is grappling with rising raw materials costs, but said it would honor current reservations in a move to avoid the blowback a rival faced.

From June 1, new reservations in the U.S.  will be priced at $154,000 for Air Grand Touring, $107,400 for Air Touring and $87,400 for Air Pure models, the company said.

“Similar to many companies in our industry, we continue to face global supply chain and logistics challenges, including Covid-related factory shutdowns in China,” CFO Sherry House said.

Amazon-backed Rivian Automotive Inc. had to earlier this year roll back price hikes on electric vehicles booked before March 1 after facing backlash from customers following a 20 percent increase in prices.

Despite the challenges, Lucid reiterated its annual production forecast of 12,000 to 14,000 vehicles.

In its first-quarter report, Lucid said it generated $57.6 million in revenue during the quarter, up from $313,000 the same quarter last year — before it began selling vehicles. Operating losses nearly doubled to $597.5 million. Because of a $523 million improvement in the value of its common stock, Lucid’s net loss was only $81.3 million compared with a loss of $2.9 billion during the same quarter last year.

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