Lucid Group Inc (NASDAQ: LCID) said on Thursday it would increase the prices of its electric vehicles from June and stick to its lowered production target for 2022 that it had provided in March due to supply chain issues.
What Happened: The premium EV startup said it would honor the current pricing for existing reservation holders, as well as any new reservations made until May 31.
Lucid CEO Peter Rawlinson in March said the company was exploring price hikes due to huge inflationary pressures from soaring nickel prices after Russia invaded Ukraine.
California-based Lucid’s strategy is different from rival Rivian Automotive Inc’s (NASDAQ: RIVN), which had to roll back price hikes after intense online backlash and cancellations.
See Also: Tesla Rival Lucid Said To Be Eyeing Price Hikes For Future Models As Inflation Bites
Price Hike Range: Lucid said its price hikes are up to 13%, with about a $15,000 increase for the Air Grand Touring to $154,000, a $12,400 hike for Air Touring at $107,400 and $10,000 increase for the Air Pure to $87,400.
The Air Grand Touring Performance's price will remain unchanged at $179,000.
Other EV makers such as Tesla Inc (NASDAQ: TSLA), Xpeng Inc (NYSE: NYSE:XPEV) also announced price increases recently.
See Also: Tesla Rival Lucid Cuts 2022 Production Target (NYSE:TGT) By Up To 40% Due To Extraordinary Supply Chain Issues
Production Target: Lucid, which has a manufacturing facility in Casa Grande, Arizona, reiterated plans to produce between 12,000 to 14,000 units this year.
The startup in May lowered its annual forecast by 20,000 units.
"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.
Price Action: Lucid closed 6.9% lower at $18.85 a share on Thursday. The stock is down 54% YTD.
Photo courtesy: Lucid
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