Lucid Rides High With Best Luxury Car Award — But Will Production Woes Ground Its Success?

Lucid Group Inc‘s LCID flagship luxury sedan Lucid Air was named the 2023 World Luxury Car of the Year, even as the company struggles to deliver cars amid logistical challenges and its stock price remains a far cry from all-time highs hit two years ago.

What Happened: Lucid Air was named the 2023 World Luxury Car of the Year at the 2023 New York International Auto Show, the company said in a statement. The awards are based on the votes of 100 automotive journalists from 32 countries. Lucid Air was chosen from a list of 16 vehicles.

Lucid Air also received the 2023 Newsweek Disruptor Award for Powertrain earlier this week.

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Why It Matters: Lucid has faced supply chain and logistical difficulties in delivering cars. CEO Peter Rawlinson in February said Lucid plans to produce 10,000 to 14,000 luxury EVs in 2023, despite having over 28,000 reservations. In 2022, the company produced 7,180 units but only delivered 4,369 cars.

The California-headquartered company, backed by Saudi Arabia’s Public Investment Fund, said last week it would cut 18% of its workforce, or about 1300 employees, as part of its cost-cutting plan.

Price Action: Since the company went public in July 2021, Lucid shares have slumped. The stock hit an all-time high of $55.21 in November 2021. Shares closed at $7.70 on Wednesday and dropped 0.3% in extended trading, according to data from Benzinga Pro.

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