A bit of good news for lucid investors

It’s been a wild ride for investors Bright (LCID 3.87%)In the early history of the electric vehicle (EV) manufacturer, they were disappointed with production and delivery figures, among other things.

But at a time when rivals like Rivaans deliveries stagnate, Lucid has managed to string together a handful of impressive departures. There is also more good news for investors this week.

What’s going on?

Lucid will officially start taking orders for its second vehicle, the Gravity crossover, on November 7. The selection starts with the high-level Grand Touring version, which the company says has a price tag of nearly $95,000 before shipping.

That’s important for investors, since the much-hyped sub-$80,000 Gravity Touring gear, which investors hope will help reach more mainstream consumers and increase sales volumes, won’t begin production until late 2025.

According to Automotive NewsRobby DeGraff, analyst at AutoPacific, said: “While it is of course not unusual for a start-up, or even an older automaker, to launch the most expensive version of a new EV first to recoup development costs, it will be interesting to see see how strong the withdrawal rate is at almost $100,000.”

That means investors hoping for an immediate boost in sales and deliveries (and there should still be a noticeable increase) will have to be patient while the automaker works on its more affordable version. This isn’t necessarily a bad thing, as as the company gradually ramps up production, it has time to get quality and production up to par before moving on to higher volume finishes.

To understand how much this vehicle means to investors, consider that management predicts the potential market for the Gravity crossover will be six times larger than that for its Air sedan.

The way forward

Lucid has had a solid 2024, selling more EVs in the first three months of the year than in all of 2023. The company has had three straight quarters of record deliveries.

Still, the news isn’t all good for investors, as the company gears up for its third-quarter earnings report. Management said it expects a bigger-than-expected operating loss in the third quarter: between $765 million and $790 million, higher than the $752 million loss expected by analysts, according to financial data firm FactSet.

But long-term investors can take the third-quarter report with a grain of salt. What’s more important to them is the company’s plan to bring a midsize crossover to market in about two years, with a price tag under $50,000 before it ships. For now, it’s just a bit of good news that orders are about to open for the Gravity, and if management can ramp up production, investors can expect a solid 2025.