Lucid’s $1 Billion Quarterly Loss Is Proof That You Need More Than Just The Best Car To Be Successful

The entire Lucid adventure has been fascinating to watch — at least, it’s been fascinating if you’re not a shareholder. Every car company now claims to have at least a few ex-Tesla engineers on the roster, but Lucid can claim to have probably the most important ex-Tesla employee as its founder and former-CEO, Peter Rawlinson.

Unsurprisingly, the two Lucid vehicles for sale are arguably the best electric cars in their respective classes. It doesn’t matter. Building cars is hard. Building electric cars is harder, no matter what anyone pretends, and Lucid has yet to be able to get all the pieces to work together, resulting in a $1 billion loss for the quarter and suspended production guidance.

After crowing a lot about the threat of Chinese automakers, Ford is reportedly going to agree to sell part of one of its plants in Spain to a Chinese automaker. In Canada, Honda is predictably abandoning its EV production entirely.

Did you know it’s V6 Day? It’s apparently V6 Day.

Lucid Suspends Production Guidance For This Year

I went to Lucid’s big Investor Day in March, and the basic vibe the company was trying to impart was that it had a long-term plan for viability. Not everything was exactly the way they wanted it, but the addition of the Lucid Gravity and, eventually, its more affordable mid-sizer, would be enough to reach something that looked like profitability by the end of the decade.

If you existed in a vacuum and just drove the cars, that wouldn’t seem like so remote a possibility. There’s a large portfolio of EVs for sale in the United States, which might make you think we have a lot of great choices. That’s not quite true. There are lots of good choices, but few truly great ones.

If you’re one of those people who is an FSD true believer, you might argue that the Tesla Model S is better than the Lucid Air purely because of Tesla’s ADAS advantage. I’m not one of those people. That argument aside, in almost every other way the Lucid Air is a better car. In pure engineering terms, the Lucid Gravity is also, arguably, the best three-row crossover/SUV anyone sells.

That’s not enough. Technical greatness doesn’t equal sales, and even offsetting the Model S in the full-size EV sedan space isn’t enough to make the kind of money necessary to spin off a bunch of product lines.

With the Gravity out the door, Wall Street was looking for the company to make about $440 million and only lose the equivalent of about $2.64 per share. By those measures, Q1 was a big miss, with a loss per share of $3.46, and revenue of $282.5 million. Overall, the company lost $989,485, which rounds uncomfortably to $1 billion.

It gets worse, as CNBC points out:

Lucid Group suspended its vehicle production guidance for the year as its incoming CEO evaluates the all-electric vehicle manufacturer’s business operations, including the potential for lower output of EVs.

The company on Tuesday also said it needs to lower its “elevated inventory” of vehicles, which for automakers has historically meant decreasing or idling vehicle production.

Lucid cannot tell you exactly how many cars it’ll build or sell. Much of this has to do with a rough recall of every single Gravity due to a supplier issue involving a seat belt anchor. Will Lucid catch up later this year when the recall issue is fully resolved, or this just masking slacking demand? Can Lucid get its smaller, more affordable car out of the factory in time to compete with the R2, Model Y, I3X and every other car in that class?

Again, no one can question the engineering capabilities of Lucid, but that’s not enough. Building, marketing, selling, and delivering cars is complicated, and having a great car is only the start. Being a successful automaker means doing everything right, and that’s not been possible for Lucid yet. Of course, that was also true for Tesla at the beginning, but Tesla had no real competition.

Most companies wouldn’t be able to survive this, and Lucid continues to be a there-but-for-the-grace-of-the-Saudi-Public-Investment-Fund-goes-I operation. So far, it seems like Saudi Arabia would rather keep its electric automaker than its alternative golf business.

Ford Is Reportedly Going To Sell Part Of Its Spanish Operations To Geely

For all of the warnings about Chinese automakers coming to the United States, Ford seems willing to assist in the expansion of Chinese automakers in Europe. Sources have told Spain’s La Tribuna de Automoción that the empty Body 3 Complex at Ford’s Valencia plant is likely to be sold to Geely.

This vehicle, internally codenamed 135 , would feature three powertrain options (self-charging hybrid, plug-in hybrid, and electric) thanks to its GEA (Global Intelligent Electric Architecture) platform. This multi-energy, modular platform allows for the development of models ranging from compact cars to higher-segment vehicles. Furthermore, the same sources indicate that negotiations are also underway to explore the possibility of producing a vehicle for Ford based on this same architecture.

Ford used to make the Kuga at Body 3, but it’s since been mothballed. Nothing has been finalized, so it might not happen, though this has long been rumored to be happening and makes sense for Ford.

Honda Kills Canadian EV Plant Plans

Canada might soon become a more competitive market for electric cars, especially now that Chinese-built cars will be sold there in greater numbers. The United States is likely to become less competitive as automakers like Honda kill their EV ambitions, and it’s going to have knock-on effects in Canada.

As Nikkei Asia reports, Honda is officially abandoning its plans for an $11 billion EV plant in Canada that no longer made sense:

Honda had expected to invest a total of 15 billion Canadian dollars ($11 billion) in the EV plant, with a planned capacity of 240,000 vehicles a year, and the battery factory. It had acquired the land and was set to receive financial support from Canada.

The project aimed to capitalize on U.S. tax breaks on EV purchases included in the Inflation Reduction Act passed in 2022 under then-President Joe Biden. But the incentives were scrapped in September under President Donald Trump, adding roughly 20% to the price of flagship Tesla EVs, for example.

The U.S. in December lowered average fuel economy requirements for automakers as well, allowing for targets to be met without making large quantities of EVs. Stalled trade negotiations between Washington and Ottawa have added to the uncertainty.

Honda would be better off exporting one of its Chinese-built EVs to Canada at this point.

Happy V6 Day!

Nissan has made up a holiday called “V6 Day” to celebrate its re-commitment to the V6. There was a very special person at the big Nissan Z event this week in California, and Nissan even had a V6 Day cake!

“For decades, the V6 has been the beating heart of some of Nissan’s most iconic vehicles – delivering the durability, strength, and power our customers rely on,” said Christian Meunier, chairman, Nissan Americas. “From the speed and acceleration of our sports cars to the confident torque that defines our trucks and SUVs, the V6 offers a rare balance of performance and dependability. The V6 is close to my heart and the hearts of millions of American drivers. It will play an important role in our lineup for years to come, particularly with the return of the mighty Xterra.”

It’s 5/6, which means it’s V/6. Get it? GET IT?

You know what, Nissan has had a rough go of it lately, I’m gonna let them have this one. Happy V6 Day, Y’all!

What I’m Listening To While Writing TMD

I remember when t.A.T.u.’s “All The Things She Said” come out and the early Internet lost its minds. Most of it seems silly in retrospect. Anyway, this song was played both in Heated Rivalry and at my gym this morning, so I guess it’s having a moment.

The Big Question

What’s the best V6 of all time?

Top photo: Lucid