Competing in the EV space is about to get even more difficult for Lucid Motors.
As reported by Insider, a leaked memo from the company indicates that it will go through a round of layoffs that will impact around 18% of its workforce or around 1,300 employees. According to the report, Lucid CEO Peter Rawlinson announced the layoffs, saying that the company needed to do so in order to cut costs as the EV startup struggles to get cars on the road and build up its brand in a premium EV car market that is currently dominated by other companies like Tesla.
The memo, which was verified by multiple sources, says that the layoffs will impact all levels of the company and begin this week.
The memo said that Lucid would communicate details about the layoffs over the next three days and that the cuts would impact every organization and level of the company, including executives. Impacted employees are expected to receive a severance package including access to career resources, healthcare coverage continuation, and acceleration of equity, according to the memo.
The Lucid Air is still the only car that Lucid has actually released into the market, and it is a luxury sedan. The Pure trim level of the car currently starts at $87,400 and goes all the way up to $249,000 for the Sapphire trim level. That puts Lucid in competition with a range of EV vehicles ranging from Tesla’s Model S to the Porche Taycan. Rawlinson has said that while last year’s focus was on manufacturing, this year’s focus will be on marketing and sales.
Lucid isn’t alone in struggling to meet the expectations of those who preorder vehicles from them. Tesla long struggled to meet the demand of customers and deliver vehicles on time. While they have generally started to move away from that issue, other brands that are new to the EV space find themselves in the same issue. From Rivian to Ford, many EV makers are struggling to keep up with demand as they ramp up production.
While most other brands are focused on EVs at the higher end, others are starting to release or announce more affordable electric vehicles. Even Tesla has announced that it will be building its next-generation EV at its upcoming Gigafactory in Mexico — the long-anticipated $25,000 car.