Lucid forecasts annual vehicle production below estimates

(Reuters) -Lucid Group forecast annual vehicle production far below analysts’ estimates on Wednesday, on signs that demand for its luxury electric vehicles will slow down as high interest rates pinch consumer budgets.

Shares of the company fell around 5% in extended trading.

The company expects to make 9,000 units for the full-year 2024 compared with estimates of 22,594 according to five analysts polled by Visible Alpha. The company made 8,428 vehicles in 2023.

The Saudi Arabia-backed company took to slashing prices once more for its Air sedans last week to counter sagging demand at a time when the EV industry is seeing a slowdown.

The company also missed estimates for fourth-quarter revenue hit by a slowdown in deliveries as consumers grapple with high costs.

Lucid reported revenue of $157.2 million, missing average analysts’ estimate of $179.9 million, according to LSEG data.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shailesh Kuber)