(Reuters) -Lucid reported a 46.6% jump in third-quarter deliveries on Monday, driven by a rush of demand for electric vehicles before lucrative tax credits expired last week, but it still missed Wall Street expectations.
The EV maker and its rivals are bracing for a sharp drop in sales in the last three months of the year without the $7,500 in credits. While some have cut prices and found mechanisms to extend the benefits of the credit, others have cut production plans in anticipation of a slump.
The EV industry has already been grappling with high tariffs on imports of vehicles and auto parts into the U.S.
While Lucid makes its vehicles in the U.S., it imports some parts from abroad. Lucid vehicles did not qualify for the tax credits on cash purchases, but it used the credits to offer attractive leases.
Lucid handed over 4,078 vehicles in the quarter, compared with estimates of 4,286 deliveries seven analysts, on average, were expecting, according to Visible Alpha. This compares with 2,781 vehicles delivered a year ago.
EV giant Tesla posted record quarterly deliveries on Thursday, while Rivian also beat sales estimates as consumers rushed to buy EVs ahead of the incentive’s September 30 deadline.
The company has put in place offers and discounts to boost the appeal of its luxury Air sedans to attract consumers who have pared back big-budget spending because of high interest rates.
The EV maker has been aggressively striking deals with North American companies to domestically source critical minerals used in manufacturing.
The company’s fortunes rely heavily on the success of its newly launched Gravity SUV and the upcoming mid-size car, which targets a $50,000 price point, as the company looks to expand its consumer base.
(Reporting by Zaheer Kachwala, Harshita Mary Varghese in Bengaluru and Abhirup Roy in San Francisco; Editing by Leroy Leo and Alan Barona)
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