Lucid, the American brand that makes the Air luxury electric sedan and is the official supplier of the front drive unit in the Formula E championship, will lay off about 18 percent of its workforce in an effort to cut costs amid a looming recession, according to Reuters.
The company has previously announced that it produced 7,180 Air sedans last year, slightly exceeding its annual production guidance of 6,000 to 7,000 vehicles, but delivered just 4,369 vehicles. Additionally, the EV startup announced that for this year, it plans on making between 10,000 and 14,000 cars, falling short of analysts’ predictions, which anticipated a production goal of 21,815 units, according to Visible Alpha cited by Reuters.
With about 7,200 employees at the end of 2022, Lucid plans to communicate with its entire workforce about the restructuring plan in the following three days, adding that the US branch will see reductions in nearly every organization and level, including executives.
Gallery: 2023 Lucid Air Touring: First Drive
"We are also taking continued steps to manage our costs by reviewing all non-critical spending at this time," the brand’s CEO Peter Rawlinson said in a letter quoted by Reuters, adding that the restructuring plan is expected to be completed by the end of the second quarter.
Earlier this month, Lucid announced a recall for 637 Air sedans that might be affected by a potential power loss issue that may shut down the electric motors.
With a starting price of $87,400, the base Pure version of the Lucid Air all-electric sedan has an EPA estimated range of up to 410 miles (660 kilometers), a maximum power output of 480 horsepower, and can sprint from zero to 60 miles per hour in 3.8 seconds.
At the other end of the spectrum, there’s the Lucid Air Sapphire, which comes with a tri-motor setup delivering 1,200 hp, allowing the EV to accelerate to 60 mph in under two seconds and on to a top speed of over 200 mph (322 kph). The top-of-the-range Sapphire starts at $249,000.
The American EV maker also designs and manufactures the front drive unit for the electric single-seater racing in this year’s Formula E championship.