Lucid begins pre-production of electric Gravity SUV in Casa Grande
Lucid Group Inc. said it is beginning pre-production of its Gravity electric crossover SUV at its Casa Grande manufacturing facility, marking a “significant milestone” for the company.
Lucid CEO Peter Rawlinson on Tuesday posted a video on LinkedIn of the first Lucid Gravity SUV bodyshell descending from a roof conveyor to the company’s main production line at its 3-million-square-foot Casa Grande factory, which underwent an expansion in January.
“This marks the beginning of the Lucid Gravity pre-production run on our assembly line,” Rawlinson wrote on LinkedIn.” Each unit will help us perfect the process and will be used for final validation testing to ensure top-tier build quality in full-scale production.”
California-based Lucid (Nasdaq: LCID) unveiled plans for its Gravity SUV at the Los Angeles Auto Show in 2023. The company’s luxury SUV will have more than 440 miles of range with a starting price of $80,000, rivaling Tesla’s Model S and Model X.
A Lucid spokesperson told the Business Journal the company plans to begin full production of its Gravity SUV later this year but declined to comment on the number of employees the electric vehicle maker expects to hire as it ramps up production in Casa Grande.
The company’s website shows it’s currently hiring for more than 40 positions in logistics, manufacturing, IT and supply chain at its Casa Grande facility.
In May, Lucid announced plans to cut its workforce by 6% — or 400 employees — by the third quarter as part of a decision to “position the company for future growth,” the Business Journal previously reported.
Those cuts were not expected to impact Lucid’s hourly manufacturing and logistics workforce at its Arizona manufacturing plant, but the company has laid off 60 salaried workers in the state, a Lucid spokesperson told the Business Journal in May.
The company had about 2,500 employees in Casa Grande following a layoff of about 1,000 workers last year, the Business Journal previously reported.
As of December 2023, Lucid had a total of around 6,500 full-time employees worldwide, according to an annual filing.
EV brands’ stock drops on Wall Street
Lucid’s pre-production announcement comes on the heels of Tesla’s weaker-than-expected second quarter financial results in which the company’s profit fell 45%, causing its stock to slide 12.3% on Wednesday.
Tesal’s disappointing results dragged down other EV makers. Rivian’s stock dropped 7%, while Lucid’s stock declined 5.6% to close at $3.28 Wednesday.
Electric vehicle companies are grappling with a slowdown in demand, increased competition and price wars. In addition, electric vehicle makers are contending with increased trade tension between the U.S. and China and threats from former President Donald Trump to remove subsidies and increase tariffs if he retakes the White House, Barron’s reported.
Lucid produced 2,110 vehicles and delivered 2,394 EVs during the second quarter ending June 30.
The company’s production and delivery numbers are ahead of the 1,728 electric vehicles produced during the first quarter, when the company delivered 1,967 vehicles, its highest quarterly delivery number to date, the Business Journal previously reported.
Lucid is expected to report second quarter financial results on August 5.