Lucid Motors – 7,180 Air produced, first recall, and outlook on luxury SUV Gravity

The NHTSA, the National Highway Traffic Safety Administration has recalled several Lucid Air sedans produced in 2022-2023. The recall affects 637 Lucid Air vehicles, which have issues with a switch for motor control. The electric car manufacturer released the following statement:

“Lucid USA, Inc. (Lucid) is recalling certain 2022-2023 Air vehicles. The electrically activated contact switches that transfer power to the drive motors could unexpectedly open and interrupt power to the electric motors.”

The problem is an electrically activated switch that controls the power flow to the motor. In some cases, according to the agency, an overly strong spring has been installed, which prevents the switch from making contact with the motor. The NHTSA states that Lucid service centers must update the software of all sedans affected by the malfunction and replace the switches free of charge through their authorized dealers.

Company Must Cut Costs

Things are not running smoothly at Lucid. As part of a restructuring process, about 18 percent of employees (1,800 staff) will lose their jobs. Problems in procuring semiconductors, Russia's war of aggression against Ukraine, and generally declining demand have brought the American automaker into financial distress.

"This measure aligns with the cost discipline we announced at the end of February during our earnings release. We are also taking further steps to control costs by currently reviewing all non-critical expenditures," CEO Peter Rawlinson explains. "We have explored and implemented various other options to optimize our cost structure, but unfortunately, these measures alone will not be enough to reach our goals. Therefore, we have made the painful but necessary decision to lay off some of our talented team members."

Initially, the layoffs will cost the company up to 30 million dollars, but according to Rawlinson, this will increase the necessary leeway for future investments.

Super SUV Lucid Gravity

At the LA Auto Show, Lucid presented its second model, the SUV Gravity. Lucid is currently finalizing the design of the E-SUV and announced that it plans to start production at the Casa Grande plant in Arizona from 2024. The luxury SUV would be more of an electric alternative to traditional American full-size SUVs rather than an off-road vehicle, Lucid Design Chief Derek Jenkins announced to reporters.