Lucid's Q2 net loss widens to $764.2 million as EV price war rages

Luxury electric vehicle maker Lucid Motors said its second-quarter net loss widened to $764.2 million as it took a hit on sales from a price war sparked by market leader Tesla Inc.

The California-based EV maker lost $555.3 million during the same quarter last year. Revenue grew 55 percent to $150.9 million.

Lucid's deliveries in the second quarter were unchanged from the previous three months at 1,404 vehicles, while its production fell 6 percent from the first quarter as it struggled to ramp up.

Competition from Tesla's Model S, whose prices were cut earlier this year, and rising borrowing costs threaten the EV firm's growth. In response, Lucid slashed prices for its Air luxury sedan as part of an offer on Saturday.

Lucid has also been struggling with rapid cash burn, prompting it to raise $3 billion through a stock offering, nearly two-thirds of which came from majority-owner Saudi Arabia's Public Investment Fund.

The company's cash balance at the end of the second quarter stood at $2.78 billion, compared with $900 million, at the end of the year's first three months.

"We're on track toward achieving our 2023 production target of more than 10,000 vehicles, but we recognize we still have work to do to grow our customer base. During our second quarter, we achieved several major milestones, including signing agreements to enter into a long-term strategic partnership with Aston Martin," CEO Peter Rawlinson said in a statement.

"We look forward to exciting new products in the second half of this year, including the planned start of production of the Lucid Air Sapphire and the Lucid Air Pure Rear Wheel Drive, plus the highly anticipated unveiling of our new SUV, Lucid Gravity, forthcoming in November."

Shares in Lucid rose nearly 4 percent to $6.66 in aftermarket trading Monday. 

Reuters and Automotive News staff contributed to this report.