Tesla CEO Elon Musk expects EV competitor Lucid Motors to go out of business
The mood in the rapidly growing EV market is slowly but surely approaching a tipping point. After disrupted supply chains and scaled-back production capacities resulted in significant price hikes across the board, electric car makers such as Tesla have started to offer discounts in some international markets where demand is declining rather quickly. According to Elon Musk, this development may have particularly drastic consequences for one certain company.
In a recent tweet, the eccentric boss of Tesla has once again forecasted the demise of EV competitor Lucid Motors. Elon Musk comment comes after new reports indicated that the electric car manufacturer, which also has its roots in the US state of California, is struggling with an increasing number of cancellations that have prompted the company to take rather drastic measures. According to Business Insider, Lucid is offering hesitant customers discounts of up to 10 percent on the six-figure list price of most Lucid Air model variants, and its representatives can purportedly make up to 14 phone calls to close the sale.
This is not the first time that Elon Musk has questioned the rival’s financial viability. The Tesla CEO has previously pointed out that the company's expenses were too high, and that it has to find ways and means to cut production costs of the Lucid Air. Although the Tesla competitor reported a revenue of US$200 million for the third quarter of 2022, the business is far from turning profitable. But despite Musk’s gloomy prediction, Lucid Motors appears to have enough cash reserves to stay in business for at least another year thanks to a large investor from Saudi Arabia.
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They are not long for this world— Elon Musk (@elonmusk) December 9, 2022
Elon Musk (Twitter), InsideEVs, Business Insider, Image: Lucid