NASDAQ title Lucid share: Tesla competitor Lucid is thinking about entering the Chinese market

• Chinese car market important for all car manufacturers
• Lucid is exploring expansion into China
• No date for market entry has been announced yet

Lucid is considering entering the Chinese car market

As CNBC reports, Tesla competitor Lucid is considering selling its cars in China. “Every automaker needs to look very closely at China, or has already done so. It is the largest auto market in the world. As we can see, it will likely be the world’s largest and fastest-growing market for electric vehicles,” chief engineer Eric Bach said in a statement Interview with CNBC at the IAA in Munich.

However, there is still no timetable for entry into the Chinese market. “We haven’t announced a market entry date yet because we just have to do it right,” said Bach. “If you go to China under the wrong conditions, you can make a lot of mistakes,” CNBC quoted the chief engineer as saying. According to Bach, there is a team on site in China that is examining the feasibility of entering the market. “We have to work on ourselves, how do we get in? What is the pricing strategy? What will our manufacturing strategy look like?” says Bach. “So we’re looking at the full range of what we should be doing as a young manufacturer and we’re going to do it right.”

How much can the company withstand?

Lucid’s consideration of expanding into China comes at a difficult time for the company, after it announced in the spring that it would lay off 18 percent of its workforce.

In addition, Lucid’s second quarter figures, which the company published at the beginning of August, showed that the Tesla competitor was still in the red. In the second quarter, EPS was -0.40 US dollars, compared to -0.33 US dollars in the same period last year. That was a bigger loss than analysts expected. Meanwhile, Lucid was able to increase its sales from $97.3 million in the same quarter last year to $150.9 million in the second quarter of 2023. The company was still below analysts’ expectations of $181.6 million. Lucid produced 2,173 vehicles at its Arizona factory and delivered 1,404 vehicles in the second quarter, falling short of Wall Street’s expectations, according to CNBC.

Additionally, Bach said Lucid has quadrupled the factory floor space at its Arizona plant and is in the process of launching an SUV called Gravity, so the system is under “stress” and Lucid needs to see how much it can handle right now.

In addition, some strong competitors are already waiting for Lucid on the Chinese car market with local companies such as BYD and NIO, as well as US electric car manufacturer Tesla.

Lucid wants to penetrate the mass market segment in the long term

Lucid, which has made a name for itself as a manufacturer of luxury electric cars, is now also planning to offer products in lower price ranges. According to CNBC, Bach explained that the company will eventually penetrate the mass market segment, which will take some time, but a mid-size car could be presented as early as 2026. “To achieve economies of scale and be able to reach these price points, you need a very strong and capable supplier base that gives you the right prices,” explained the Lucid chief engineer. “So here we start from the top down so that we can build that trust, earn it, build networks, build our logistics systems – and then also get that scale and ultimately sales out of the mid-size vehicle to finance the investment in mass market production “, says Bach.

Lucid shares have already fallen by 13.32 percent on the NASDAQ this year. Most recently it cost 5.92 US dollars (as of the closing price on September 15, 2023), after it was still trading at almost 13 US dollars at the end of January.

Editorial team finanzen.net

Selected leverage products on BYD Co. Ltd.

With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on BYD Co. Ltd.

The leverage must be between 2 and 20