(Reuters) -Lucid Group reported second-quarter deliveries above analysts’ estimates on Monday, as price cuts bolstered demand for its luxury electric sedans, sending the company’s shares up about 6% in premarket trading.
High borrowing costs, economic uncertainties and consumer preference for gasoline electric hybrids have weighed on demand for EVs.
EV market leader Tesla (NASDAQ:) and others including Lucid (NASDAQ:) have responded to slowing demand by slashing prices and offering greater incentives such as cheaper financing options to lure consumers.
Lucid had cut prices of its flagship Air sedans by as much as 10% in February.
The company delivered 2,394 vehicles in the quarter ended June 30, above estimates of 1,940 units, according to eight analysts polled by Visible Alpha. It had delivered 1,967 cars in the preceding three months.
Lucid produced 2,110 units in the second quarter, compared with 1,728 vehicles in the prior three-month period.
The company, in which Saudi Arabia’s Public Investment Fund holds about 60% of shares, had said in May it expects capital expenditure of $1.5 billion in 2024, up from $910.6 million last year, as it prepares to start manufacturing its Gravity SUV.
The Gravity SUV, priced at around $80,000, is set to go into production later this year and will take on Tesla’s Model X. Lucid’s Air sedan competes against the Elon Musk-led EV maker’s popular Model S.
Rivian (NASDAQ:) Automotive reported upbeat second-quarter deliveries last week, while Tesla posted a smaller-than-expected decline.
Lucid had in May reaffirmed its annual production forecast of 9,000 cars in 2024, compared with the 8,428 vehicles it made last year.