Peter Rawlinson, CEO of electric vehicle manufacturer Lucid Motors, recently announced during their Q1 earnings call that its midsize model will enter production in late 2026, with an expected price of around $48,000. This announcement and a detailed conversation on Lucid’s quarterly results and the state of the electric vehicle (EV) industry offer insight into the company’s future plans and strategic partnerships.

Midsize Model: The Next Big One

Responding to a question from a retail shareholder during the earnings conference call, Rawlinson emphasized the importance of a midsize model to Lucid’s lineup. “We need to get a midsize vehicle, our volume vehicle, priced at around, we believe, about $48,000, and get that into production,” he said. “It’s on schedule for production in late 2026.”

Later in the call, Rawlinson reiterated the price range and teased that the model would be “the big one, the one that’s going to be exciting.” He added, “Wait until our midsize comes out in late 2026. That’s when we’ll have a car for $48,000 to $50,000, and that is the big one.”

The midsize model is a pivotal component of Lucid’s long-term growth strategy. It aims to bridge the gap between its luxury sedans and the more accessible mass market. This vehicle will embody Lucid’s signature blend of advanced technology, efficiency, and performance while expanding the brand’s reach to a broader consumer base. By setting a price point of around $48,000, Lucid aims to attract customers who have previously found its high-end models out of reach.

“We believe this vehicle will redefine the midsize EV segment,” Rawlinson said. “It will bring our unparalleled efficiency, range, and technology to a wider audience while maintaining the premium features and design that set Lucid apart.”

The midsize model will utilize Lucid’s advanced in-house technology, including its ultra-efficient battery packs and proprietary electric drivetrain. According to Rawlinson, the company’s commitment to efficiency means this model will achieve impressive range figures while minimizing production costs, helping it remain competitive against other midsize EVs.

“I’m confident that we can achieve unrivaled levels of efficiency for this crucial midsized class vehicle,” Rawlinson said. “Efficiency is the key to a smaller battery for any given range, and a smaller battery is a key element to lower costs when it comes to making an EV. I can’t wait to show you our midsized game changer.”

Lucid’s ambition with the midsize model reflects the company’s broader strategy of achieving scale and expanding its market share in the rapidly growing EV sector. By offering a compelling midsize option with a starting price of $48,000, Lucid seeks to establish itself as a serious contender in the mass-market EV space while maintaining its innovative edge over competitors.

In addition to expanding its product lineup, the midsize model will be crucial for Lucid’s global growth plans, particularly in key markets like Europe and Asia, where midsize vehicles are popular among consumers. The company expects this new model to play a central role in its strategy to increase production and achieve profitability.

“We see the midsize model as a transformative product for Lucid,” Rawlinson said. “It’s going to help us unlock new markets and solidify our position as a leader in the EV industry.”

Lucid Gravity SUV: Scaling the Market

Lucid’s upcoming Gravity SUV is set to redefine the luxury electric SUV segment, marking a significant leap in the company’s journey toward capturing a larger market share. Scheduled for production in late 2024, the Gravity is expected to capitalize on the burgeoning demand for electric SUVs.

“The Gravity SUV program is scheduled for the start of production late this year,” said CEO Peter Rawlinson during the earnings conference call. “Its total addressable market is six times larger than the market we could access in 2023 with the Lucid Air.”

Rawlinson emphasized that Gravity will embody Lucid’s hallmark efficiency, charging speed, and technological innovation while providing the interior volume and luxury customers demand from a high-end SUV. He is confident that Gravity will deliver world-class range and performance, reinforcing Lucid’s position as a leader in electric vehicle technology.

“We’ve applied all of our learnings from Air and incorporated them into our SUV program,” he said. “I’m confident that Gravity will redefine the segment with world-class range, efficiency, charging speed, and interior volume.”

The Lucid Gravity will feature seating configurations for five, six, or seven passengers, making it versatile enough for families and individuals. Its three-row seating and spacious interior will distinguish it from competitors like the Tesla Model X and Rivian R1S, while the advanced technology underpinning the vehicle will ensure top-tier efficiency and performance.

“Gravity is a proper SUV,” Rawlinson emphasized. “It’s a seven-seat, three-row vehicle with the unique secret weapon that we can go further with less battery and address the critical cost of making these products.”

In terms of design, Lucid has prioritized versatility, luxury, and cutting-edge technology. The Gravity SUV will feature Lucid’s proprietary electric drivetrain and battery technology, offering exceptional range while maintaining the company’s signature sleek aesthetics.

Moreover, the Gravity program will be instrumental in Lucid’s strategic goal of achieving economies of scale. With its larger addressable market and strong consumer interest, Gravity will enable the company to increase production volumes, thus spreading fixed costs across more vehicles and improving profitability.

“In a third-party survey, already two-thirds of EV SUV purchasing intenders would consider Lucid,” Rawlinson noted. “And this is worth emphasizing: two in every three people intending to purchase an electric SUV know and would consider Lucid. Amongst all SUV purchase intenders—EVs and gas SUVs—more than 50% would consider Lucid.”

As the company ramps up production, Rawlinson remains confident that Gravity will significantly enhance Lucid’s market penetration and brand awareness, providing a critical multiplier effect for future models.

“We’re excited about the momentum we’re building with Gravity,” Rawlinson said. “This vehicle will help us achieve the scale we need and unlock new levels of efficiency and profitability.”

Financial Performance and Saudi Support

Lucid Motors’ financial performance in the first quarter of 2024 was marked by significant progress despite a wider-than-expected loss. The company reported production of 1,728 units of its Air luxury sedan and deliveries reaching 1,967 vehicles, representing a year-over-year increase of 39.9%. Although the loss widened, CEO Peter Rawlinson emphasized that strategic investments rather than operational setbacks dominate the company’s financials.

“In Q1, we produced 1,728 Lucid Airs, and we delivered 1,967, both slightly above our expectations,” Rawlinson said during the earnings conference call. “In fact, it was our best quarter-to-date for deliveries, up 39.9% year-over-year.”

Lucid’s financial health has been bolstered by the steadfast support of the Public Investment Fund (PIF) of Saudi Arabia. The PIF, which currently holds a 60% stake in the company, infused an additional $1 billion into Lucid through a private placement of convertible preferred stock. This investment reinforces the PIF’s confidence in Lucid’s long-term vision and underscores the strategic partnership between the two entities.

“Our partnership with the PIF is a cornerstone of their Vision 2030, which aims to transition the Saudi economy away from fossil fuels,” Rawlinson emphasized. “We are incredibly appreciative of the commitment they’ve made, showing time and again that this is a very special relationship.”

With over $5 billion in total liquidity, Lucid Motors is well-positioned to fund its ambitious growth plans, which include producing the Gravity SUV and developing a midsize vehicle platform. The PIF’s continued backing gives the company the financial security to scale its operations and expand its market presence.

“This support from the PIF takes us past the start of production for Gravity and well into next year,” Rawlinson said. “It’s an enviable position that puts us in a very strong place financially.”

The PIF’s unwavering commitment to Lucid is rooted in the strategic alignment between the automaker’s mission and Saudi Arabia’s Vision 2030. The recent establishment of Lucid’s Advanced Manufacturing Plant (AMP-2) in King Abdullah Economic City marks the first-ever car plant in Saudi Arabia, further strengthening the relationship between the two partners.

“Right now, running in Saudi Arabia is the first car plant they’ve ever had operating, and it’s a Lucid plant,” Rawlinson noted. “We’re laying the foundations, literally pouring the concrete for our complete business unit factory, which is scheduled to sync with the advent of the arrival of the midsize vehicle in Saudi Arabia.”

As Lucid Motors continues to scale its operations, the company is set to leverage its strategic partnership with the PIF to successfully navigate the evolving EV market landscape. Lucid is poised to achieve significant milestones in the coming years with cutting-edge technology, financial support, and a long-term vision.

“We have sales momentum, a compounding efficiency advantage, unprecedented interest from consumers and corporate partners, and more than $5 billion in total liquidity,” Rawlinson concluded. “Therefore, I’ve never been more confident in our future.”

Production and Deliveries

Lucid Motors’ production and delivery figures in the first quarter of 2024 underscore the company’s progress in scaling its operations. With 1,728 Lucid Airs produced and 1,967 delivered, the quarter marked Lucid’s best performance, reflecting a 39.9% year-over-year increase in deliveries. CEO Peter Rawlinson emphasized that this achievement clearly indicates Lucid’s growing market momentum and brand recognition.

“We just came off a record first quarter,” Rawlinson said during the earnings call. “We’re seeing nearly 40% quarter-on-quarter and 37% year-on-year improvement in our deliveries.”

This impressive growth has enabled Lucid to outsell key competitors in the luxury electric vehicle (EV) segment, such as the Porsche Taycan, Mercedes-Benz EQE, EQS, and BMW i7. Lucid Air has outperformed the Mercedes-Benz EQE and EQS for the third consecutive quarter, while surpassing the Audi e-tron GT for the fifth quarter in a row.

“Just to put this in perspective, in Q1, for the first time ever, Lucid outsold Porsche Taycan,” Rawlinson noted. “We’ve outsold the Mercedes Benz EQE for the third consecutive quarter, and the Mercedes Benz EQS as well.”

Despite these gains, Lucid strategically manages its production to align with market demand, aiming to be cost-conscious while expanding brand awareness. As Rawlinson explained, the lower production relative to deliveries was a deliberate decision.

“Our lower production than deliveries is an active decision to be cost-conscious and is not a reflection of production bottlenecks,” he said.

The company remains confident in its annual production guidance of “approximately 9,000” units, representing a modest increase from the 8,428 vehicles produced in 2023. The introduction of the Gravity SUV later this year is expected to significantly expand Lucid’s total addressable market significantly, substantially boosting production volumes.

“The Gravity SUV program is scheduled for the start of production late this year,” Rawlinson confirmed. “Its total addressable market is six times larger than the market we could access in 2023.”

Lucid’s focused approach to production and delivery, combined with its strategic expansion of the vehicle lineup, sets the company on a clear trajectory toward achieving sustainable growth. The upcoming Gravity SUV production ramp and the midsize platform development for a 2026 launch signal Lucid’s commitment to scaling its operations while maintaining a strong market position.

“Lucid Air Pure is already here, with a starting price from $69,900,” Rawlinson said. “And the Gravity SUV will redefine the segment with world-class range, efficiency, charging speed, and interior volume.”

As the company continues to innovate and diversify its product lineup, Lucid is poised to deliver on its ambitious production targets while solidifying its position as a leader in the luxury EV market.

Technological Edge and Market Position

A core strength underpinning Lucid Motors’ position in the luxury electric vehicle market is its unwavering focus on technological innovation. CEO Peter Rawlinson has consistently highlighted the company’s “superior in-house technology” as a differentiator that sets it apart from competitors. This technological prowess is particularly evident in Lucid Air’s remarkable efficiency and performance.

“Lucid Air is increasingly recognized as a superior vehicle in nearly every aspect that customers value,” Rawlinson emphasized. “For the third consecutive year, Lucid Air was named the best luxury electric car by U.S. News & World Report in its 2024 best hybrid and electric car awards.”

The vehicle’s advanced engineering enables it to achieve exceptional range and charging speeds, two critical factors for consumers in the luxury EV market. With the longest range and fastest charging times in its class, the Lucid Air directly addresses concerns around range anxiety and charging infrastructure. This engineering excellence is attributed to Lucid’s efficient battery technology, allowing the Air to cover more miles per kilowatt-hour than other EVs.

“Lucid Air is the most efficient vehicle in its class as measured in miles per kilowatt-hour,” Rawlinson noted. “While leading the industry for range and charging speed and having a lower total cost to charge.”

This efficiency advantage is crucial because the battery is the most expensive component in an EV. Lucid’s ability to deliver high performance with smaller batteries translates to lower production costs, ultimately improving profitability as the company scales up.

“Our tech is made for affordability at scale,” Rawlinson explained. “It’s designed around reducing the need for battery, which is the biggest cost item in making an EV.”

Lucid’s technology also extends to its proprietary software, which continues to attract interest from other automakers. The company recently signed a deal with Aston Martin to supply its front-drive unit and software, a partnership that has spurred additional inquiries from other prospective partners.

“Our Aston Martin deal continues to generate more interest in our technology from other prospective partners,” Rawlinson revealed. “Please watch this space as we continue to discuss monetization opportunities across all aspects of our technology, including our world-class software.”

With the upcoming Gravity SUV and the planned midsize model set for production in late 2026, Lucid is poised to expand its market share by leveraging its technological edge. The Gravity SUV, in particular, will redefine the segment with world-class range, efficiency, charging speed, and interior space, providing a compelling alternative to other luxury SUVs.

“Gravity is a proper SUV, and it’s a seven-seat, three-row vehicle,” Rawlinson said. “We’ve got this unique secret weapon that we can go further with less battery and address the critical cost of making these products.”

Lucid’s strategic focus on efficiency and innovative technology positions the company as a leader in the rapidly evolving luxury EV market. The brand’s growing recognition, strong partnerships, and expanding product lineup provide a solid foundation for continued growth and market expansion.

Looking Forward: The Future of Lucid and EVs

As Lucid Motors continues solidifying its position in the luxury electric vehicle market, its forward-looking strategy remains focused on scaling its product lineup, expanding market reach, and capitalizing on its technological edge.

Scaling the Lineup with the Midsize Model and Gravity SUV

The upcoming midsize model, set for production in late 2026, represents a pivotal moment in Lucid’s trajectory. With a price tag around $48,000, this “big one,” as CEO Peter Rawlinson calls it, aims to bring Lucid’s superior technology and efficiency to a broader customer base, marking a significant move into the mid-priced EV segment.

“The midsize vehicle will be a game-changer, delivering unrivaled levels of efficiency in this crucial class,” Rawlinson emphasized. “Efficiency is key to a smaller battery and lower costs.”

Complementing this, the Gravity SUV, which starts production later this year, is expected to redefine the luxury SUV segment. With a market six times larger than the Air sedan, Gravity will offer world-class range, efficiency, and interior volume, tapping into the growing demand for electric SUVs.

“The excitement around Gravity is palpable,” Rawlinson said. “It’s on track to become the world’s best SUV, and we’re already seeing unprecedented interest from consumers.”

Market Expansion and Partnerships

Beyond its expanding product lineup, Lucid is actively pursuing new markets and partnerships. The company recently partnered with Wallbox to provide charging solutions for European customers. In addition, its technology supply agreement with Aston Martin is paving the way for further monetization opportunities.

“Our Aston Martin deal has sparked interest from other prospective partners,” Rawlinson revealed. “We are exploring opportunities across all aspects of our technology, including software.”

The company’s partnership with Saudi Arabia’s Public Investment Fund (PIF) also provides a strategic advantage. Lucid’s plant in Saudi Arabia is the country’s first car factory. It is set to manufacture the midsize model for the region, underscoring Lucid’s role in the Kingdom’s Vision 2030.

Navigating Financial Challenges

Despite wider-than-expected losses in the latest quarter, Lucid remains confident in its financial position. The company reiterated its annual production guidance of approximately 9,000 units for 2024 and highlighted the PIF’s $1 billion capital infusion.

“Our lower production than deliveries is an active decision to be cost-conscious,” Rawlinson explained. “We are strategically scaling up, and our strong liquidity positions us well for future growth.”

The company aims to achieve profitability through scale, leveraging its Arizona factory’s 4 million square feet to optimize production costs. Lucid’s focus on efficiency and technological innovation is expected to drive profitability as production ramps up.

The Future of EVs

Looking beyond Lucid, the broader EV market is poised for rapid growth as more consumers embrace electric mobility. While competition intensifies with established automakers and new entrants vying for market share, Lucid’s emphasis on efficiency, range, and charging speed gives it a distinct advantage.

“Consumers are savvy and recognize the deficiencies of other EVs, particularly in range and charging times,” Rawlinson said. “Lucid Air and Gravity offer superior solutions, and our midsize model will make EV ownership accessible to even more people.”

The company’s strategic positioning, growing brand recognition, and robust technological foundation ensure that Lucid remains well-placed to capitalize on the accelerating shift to electric vehicles. As the EV landscape continues to evolve, Lucid Motors is firmly focused on its mission to deliver compelling electric vehicles that redefine efficiency, performance, and luxury.