American electric vehicle startup Lucid Group Inc (NASDAQ:LCID) announced Tuesday that the company has begun a "new phase of development, now testing on public roads throughout the U.S." its next model, a large SUV called Gravity.
Lucid hasn’t yet fully revealed the Gravity in production-spec trim. But the company has said that the Gravity will have seating for up to seven people, with “the driving dynamics of a sports car.” The interior will feature new high-resolution displays powered by a new generation of Lucid’s proprietary software operating system, Lucid said on Tuesday.
Lucid’s first vehicle, the Air sedan, has impressed reviewers and won several important industry awards. However, demand for the high-priced EV appears to have fallen short of Lucid’s internal expectations.
Shares are down about 30% since Lucid said in February that it expects to build just 10,000 to 14,000 Airs in 2023, versus the 27,000 that Wall Street had expected. The stock was hit again in March, when Lucid cut 18% of its workforce, about 1,300 employees.
CEO Peter Rawlinson said in a statement that development of the Gravity is driving further advancements of Lucid’s in-house software and battery technology.
“The Lucid Air redefined the sedan category, and as our technology continues to evolve and lead the market, we are in a place where the Gravity is positioned to change the world of SUVs,” Rawlinson said.
Lucid had originally planned to release the Gravity later this year. But in February 2022, after beginning production of the Air, Rawlinson said Lucid would delay the Gravity until 2024 to refine the design and incorporate lessons learned from the Air’s launch. The Gravity will be built alongside the Air at Lucid’s factory in Casa Grande, Arizona.
Shares of LCID are down 2.79% in afternoon trading on Tuesday.