Lucid Motors has just completed its new best-selling quarter, on the back of big sales to rental fleets and a better marketing plan. The company’s first-quarter revenue of $235 million reflected a fourth consecutive quarter-over-quarter increase in deliveries. Sales shot up as a result of a $3.5 million bolt of the company’s sales and marketing arm. This prescient move was designed to increase brand visibility and drive deeper customer connection.
Lucid Motors just dropped some great news in October 2024. The Germany-based rental company Sixt would be thrilled to have the Lucid Air in its fleet! This new partnership is just one aspect of a larger strategy to raise awareness and create buzz around Lucid’s electric vehicles (EVs). Lucid does not recognize revenue at the time those cars are sold to rental companies. This is due to the fact that they have a liability to buy back such vehicles down the line.
In the first quarter, Lucid Motors achieved notable sales of approximately $27.2 million to rental car companies. This figure represents approximately $25 million, or about 300 cars per dealer. The firm had sold just $9.1 million in vehicles to rental companies so far in 2023. This change is a big deal, as it represents an enormous fleet sales increase. In 2024, rental company sales accounted for a stunning $34.7 million of Lucid’s automobile sales.
In those months, the company set several world-record sales. This piece of success allowed Lucid Motors to report deliveries that were 100 vehicles more than Q4 2024. Deliveries are up significantly due to robust sales to rental agencies. Leasing companies are taking a big part, as the majority of vehicles sold are leased back to Lucid via an enhanced company car scheme.
Lucid’s interim CEO, Marc Winterhoff, expressed optimism about the ongoing growth, emphasizing the importance of marketing in reaching potential customers.
“Many of our customers continue to tell us that once they experience a Lucid, it’s hard to go back,” said Winterhoff.
For this quarter the ASP on Lucid models was about $75,590. With over 70k units sold this year, this figure illustrates the brand’s impressive hold on the premium EV sector. Further, the company in total rented or leased about 360 EVs to rental and leasing companies for the quarter.
Under intense competitive pressure, Lucid Motors iteratively pivots its business model. The firm takes a highly disciplined approach to identifying investment opportunities that fit its long-term focus and vision. Nick Twork, a representative for Lucid, stated,
“As part of the normal course of business, we leverage fleet transactions whenever we see a good opportunity that is in the best interest of our business.”
Lucid Motors is preparing for a thrilling rollout! They are hoping to get their first SUV, the Gravity, into production in larger numbers this second half of this year. This new introduction should help boost Lucid’s growing impact in the increasingly competitive EV market and bring more customers into the proverbial fold.
Peter Rawlinson, CEO of Lucid Motors, noted,
“[t]oo few people are aware of not just the car, but even the company.”
Leave a Reply