Lucid plans to lay off about 400 employees due to downturn in electric vehicle market

Documents submitted to regulators by U.S. electric vehicle manufacturer Lucid on Friday (24th) showed that the company will lay off about 400 people in the next few months, accounting for about 6% of the total number of employees. It is expected to be completed in the third quarter, including restructuring. The cost is approximately US$21 million to US$25 million. The move is Lucid\’s latest austerity measure amid a sharp slowdown in the electric vehicle market.

Documents submitted to regulators by U.S. electric vehicle manufacturer Lucid on Friday (24th) showed that the company will lay off about 400 people in the next few months, accounting for about 6% of the total number of employees. It is expected to be completed in the third quarter, with restructuring costs ranging from about 2,100. between 10,000 and 25 million US dollars.
The move is Lucid\’s latest austerity measure amid a sharp slowdown in the electric vehicle market.
It is understood that Lucid\’s restructuring expenses for this round of layoffs will be recognized this quarter.
The company\’s layoffs not only show that it is adapting to an environment of declining consumer demand for electric vehicles, but also highlight the challenges it faces in expanding production scale.
Tesla (TSLA-US), the leader in the electric vehicle market, announced last month that it would lay off at least 10% of its employees. Another electric vehicle manufacturer Rivian (RIVN-US) has also laid off multiple employees this year.
The layoffs come just weeks after Lucid reported a larger-than-expected loss for the first quarter of the year and delivered just 2,000 vehicles during the quarter.
Although the company is small and specializes in electric luxury cars such as the Lucid Air brand, which targets high-end customers, it is one of the few electric car manufacturers that continues to deliver cars.
It is worth noting that Lucid has previously received favor from Saudi Arabia’s Public Investment Fund (PIF), which received a US$1 billion capital injection, becoming its largest and most stable backer.
At the time of writing, Lucid (LCID-US)\’s stock price rose 1.1% before the market opened on Friday, and was provisionally quoted at $2.75 per share. It closed down nearly 6% on the previous trading day.

Like (0)
Previous May 24, 2024 1:09 pm
Next May 24, 2024 1:09 pm

Related posts