Lucid Motors loses a third of a million dollars on every electric car produced

A number of companies that are trying to compete with Tesla in the electric car market are operating at a loss. One such firm is Lucid Motors.

Here's What We Know

According to analysts at Bloomberg Intelligence, Lucid Motors is losing $338,000 on every electric vehicle it produces. The company is aiming to build 10,000 vehicles by the end of 2023, as previously promised, and in the meantime, its share price has hit an all-time low.

Since the beginning of this year, the securities of Lucid Motors have fallen in price by 25 per cent. At the same time, analysts' forecasts regarding the financial performance of the company from California deteriorated by about 50%.

At the moment Lucid Motors is focused on the production of premium electric cars, but in the future it plans to sell relatively inexpensive cars. The company needs to increase sales volumes to be able to recoup its investment in establishing mass production.

Some analysts predict that Lucid Motors will have to resort to defaulting on its debt obligations. The company now has about $5.2bn, but will have to incur charges of at least $7bn next year.

Source: Bloomberg