Lucid Motors, the Bay Area-based electric vehicle (EV) startup, has recently gained attention for a less favorable matter.
Shortly after receiving a substantial $1 billion investment, the company laid off many employees, affecting hundreds of individuals.
Lucid's Workforce Reduced by 400
Lucid's recent announcement revealed a reduction in its workforce, with around 400 employees affected, which accounts for approximately 6% of its total workforce.
This follows a previous round of cuts in March 2023, where 1,300 employees were laid off. Despite these cost-saving measures, the company is still grappling with substantial net losses, surpassing $2.8 billion in 2023, Tech Story reported.
Conversely, well-known companies such as Tesla, Ford, and General Motors have a considerable advantage in terms of production capacity and brand reputation.
Lucid Faces $680 Million Loss Amid Electric Vehicle Challenges
Lucid has faced significant challenges in overcoming the steep expenses of launching an electric vehicle company.
Despite the generally favorable reception of its Air sedan, priced between $69,900 and $249,000, the company incurred a loss exceeding $680 million in the year's first quarter.
According to a February filing, net losses of $2.8 billion were reported in 2023, in line with the ongoing pattern.
According to SFGate, despite implementing a significant cost-cutting measure in March 2023, which resulted in the layoff of 1,300 employees, Lucid still experienced losses.
The company has managed to remain financially stable, thanks in large part to the substantial funding it has received from its primary financial supporter, Saudi Arabia's sovereign wealth fund.
In March, Lucid announced that it would raise an additional $1 billion through a stock sale to a fund subsidiary.
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