Lucid Layoff

[ColoradoKent]

Has anyone heard of a recent 10% employee layoff at Lucid?

 

[MorganB]

No.

 

[thecodingart]

Nope, link?

 

[ColoradoKent]

Heard it from an employee who prefers to remain nameless.

 

[jri]

EV startup Lucid plans to lay off hundreds of workers at every level of the company, leaked memo says

In an all-hands meeting and email to staff, Lucid said the layoffs would begin over the next three days and affect about 18% of the company.

www.businessinsider.com

 

[MorganB]

Interesting. I'll be curious to see the full details when Lucid PR announces it officially. Hopefully it's not solely based on lack of demand.

 

[idiot900]

Oof. Though...did they have an expectation of profitability yet? I had always thought the Air was more or less their "proof of concept" in a moribund product segment. Until they are shipping SUVs it would be no surprise the company loses a bunch of money.

 

[thecodingart]

EV startup Lucid plans to lay off hundreds of workers at every level of the company, leaked memo says

In an all-hands meeting and email to staff, Lucid said the layoffs would begin over the next three days and affect about 18% of the company.

www.businessinsider.com

Well, that's more than 10% and not great. They've received a ton of positive media post the CarPlay release but have a tendency to do a good/bad media round.

Right now, it's this + recalls.

 

[steveairgt]

Very sad. That explains why we (LCID) are down about 8% today.

 

[Sandvinsd]

Yup. Saw it on seeking alpha

Lucid reportedly plans to lay off nearly 1300 workers (NASDAQ:LCID)

Lucid Motors (LCID) is reportedly planning to reduce its headcount by over 1,000 workers.The Saudi-backed EV startup reportedly told workers about plans to lay off hundreds of workers...

seekingalpha.com

 

[Drendino]

This is very sad because with few exceptions, the employees have poured their heart and souls into the company to create one of the best cars ever built. At the same time, it would be irresponsible for management not to issue layoffs in the face of such low demand. It also doesn’t help that Gravity is still in development, rather than getting ready for production. Ugh

 

[Sandvinsd]

Interesting. I'll be curious to see the full details when Lucid PR announces it officially. Hopefully it's not solely based on lack of demand.

It does have a lot to do with the lack of demand. They ramped up GT and AT production, but the reservations were cancelled and the cars are now sitting on the lot with no buyers. Meanwhile, the Pure reservation holders are waiting since they have not switched over. Many of those will move elsewhere for their EVs

 

[jri]

It's a tough environment for a premium startup EV company no matter how great the car is. Tesla has a 10+ year head start yet are lowing prices and just offered free charging for Model X/S buyers by year end.

 

[steveairgt]

I wonder if this could mean that the PIF might step in to take Lucid private? If that happens, all/most of the top developers could leave since they would loose their stock options; a major reason to join a startup in the first place. I would rather see Lucid sold to another public company than to be taken private.

 

[Drendino]

It does have a lot to do with the lack of demand. They ramped up GT and AT production, but the reservations were cancelled and the cars are now sitting on the lot with no buyers. Meanwhile, the Pure reservation holders are waiting since they have not switched over. Many of those will move elsewhere for their EVs

They have to figure out a way to release the Gravity asap and at Pure pricing, so they can compete with Rivian. They can release their premium versions in a better economy.

 

[borski]

I wonder if this could mean that the PIF might step in to take Lucid private? If that happens, all/most of the top developers could leave since they would loose their stock options; a major reason to join a startup in the first place. I would rather see Lucid sold to another public company than to be taken private.

I’m skeptical. I imagine this is cost cutting due to the present environment of high rates and money no longer being “cheap/free.” My guess is Lucid is simply taking a look at their balance sheet and ensuring they stay careful in an environment which calls for more financial prudence.

 

[joec]

Best of luck to those who are being let go. Sucks. But if demand is below what they need it to be, this is probably a prudent move. It’s not like Lucid has money to burn right now.

Every single employee of Lucid I’ve met so far has been passionate about the brand and wants to make great things for people. This is a blow to the entire team. Hoping it will be the only round of layoffs necessary.

 

[borski]

Hoping it will be the only round of layoffs necessary.

Yeah, this is one of the hardest things, tbh. Having had to let people go, you strive really really hard to ensure you’re cutting enough that you only have to cut once; morale can live through and even thrive after a lay off. It cannot survive four.

 

[RM-S8]

Okay, so? Lucid is not going anywhere. Let's not panic (if anybody is planning to).

 

[HariK]

I am not planning on selling Lucid stock. However, my cost is 16+ and I will have to wait at least till the end of 2024. Lower interest rates, cheaper battery, lower priced Gravity a bit above Pure, eliminate so many models. I personally do not see the need for Touring. All that is needed Pure, Gravity and just one version of GT. I am not even sure if they need the GT performance when they have Sapphire.