Lucid Motors Achieves Record Q1 2025 Deliveries
Lucid Motors reported a record-breaking 3,109 electric vehicle (EV) deliveries in the first quarter of 2025, exceeding expectations despite a challenging market. Deliveries spanned North America, Europe, and Saudi Arabia.
Fleet Sales Drive Growth
A significant contributor to this success was the sale of approximately 300 vehicles to rental and leasing companies. Lucid clarified that the "vast majority" of these sales were for its company car program, involving vehicles leased back to the automaker. A spokesperson explained that Lucid leverages fleet transactions strategically to benefit the business.
This strategy helped Lucid surpass Q4 2024 deliveries by 100 vehicles, marking the fifth consecutive quarter of delivery growth. This achievement stands out against industry trends, as competitors like Tesla and Rivian experienced significant delivery declines early in the year.
From Struggles to Success
Following years of establishing a market for its luxury sedan, the Lucid Air, the company anticipates higher volumes with the upcoming Gravity SUV launch in the second half of 2025. Interim CEO Marc Winterhoff celebrated the Q1 milestone, highlighting positive customer feedback.
Analyzing the Financial Impact
While the exact number of fleet sales remains undisclosed, Lucid's Q1 filing reveals $27.2 million in revenue from these transactions. Based on the total Q1 revenue of $235 million and 3,109 deliveries, the average selling price was approximately $75,590. This suggests around 360 EVs were sold to rental and leasing companies, a notable increase compared to $34.7 million in 2024 and $9.1 million in 2023.
Lucid clarifies that revenue from these sales is deferred until the repurchase of the vehicles, at which point the difference between the initial sale and repurchase price is recognized.
Partnerships and Market Challenges
Lucid's partnerships with rental companies like Sixt and Enterprise have become increasingly apparent. Quantifying the impact of these sales on overall deliveries was previously difficult but is now clearer with the latest filing.
The company has faced challenges establishing the Lucid Air, partly due to declining sedan popularity and Tesla's price cuts. Former CEO Peter Rawlinson previously acknowledged the need for increased brand awareness.
Interim CEO Winterhoff emphasizes strengthening marketing efforts. With $3.5 million spent on sales and marketing in Q1, increased investment is expected.
