Essay by Eric Worrall

h/t resourceguy – Lucid, a startup which manufactures high end luxury EVs, reports demand has fallen short of expectations.

Lucid to cut 1,300 workers amid signs of flagging demand for its EVs

PUBLISHED TUE, MAR 28 20234:40 PM EDTUPDATED TUE, MAR 28 2023AT 8:13 EDT
John Rosevear@JOHN__ROSEVEAR

• Lucid said in a regulatory filing that it is cutting about 18% of its workforce, or roughly 1,300 workers.
• In a letter to employees, CEO Peter Rawlinson said the job cuts will hit “nearly every organization and level, including executives.” 
• The company expects to take charges of $24 million to $30 million related to the cuts, most of that in the first quarter.

Struggling EV maker Lucid said in a regulatory filing on Tuesday that it plans to cut about 18% of its workforce, or roughly 1,300 employees, as part of a larger restructuring to reduce costs as it works to ramp up production of its Air luxury sedan.

Lucid said it will incur one-time charges totaling between $24 million and $30 million related to the job cuts, with most of that amount being recognized in the first quarter of 2023.

News of the job cuts was first reported by Insider earlier on Tuesday. Lucid’s shares closed down over 7% on Tuesday following the Insider report.

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Read more: https://www.cnbc.com/2023/03/28/lucid-to-cut-1300-workers.html

Lucid has $4.4 billion cash, which is enough to last until Q1 2024.

I’m no fan of EVs, but I feel sorry for people who are losing their jobs, in what may be a tough year.