PIF-Backed Lucid Outpaces Amazon-Backed Rivian in a Shifting EV Market

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Lucid offered incentives to attract buyers away from less expensive hybrid cars, which were difficult to finance due to high loan rates.

Electric carmaker Lucid posted a 58% increase in first-quarter deliveries after cutting its car prices, while its rival Rivian Automotive recorded a 36% decrease.

Lucid Group, Inc. is an American automobile and technology firm that produces electric cars and provides cutting-edge powertrain solutions. It is backed by the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, to establish a domestic EV manufacturing sector and strengthen the industry.

Lucid offered incentives, including lower financing, to attract buyers away from less expensive hybrid cars, which were difficult to finance due to high loan rates.

According to figures produced by the London Stock Exchange Group (LSEG), the company forecasted revenue would be between $232 million and $236 million for the first quarter, less than the $256.3 million Wall Street predicted.

Lucid and Rivian’s shares fell to almost 5% in extended trading.

Lucid shipped 3,109 vehicles during the first quarter, up from 1,967 the previous year. It produced 2,212 cars during the quarter that ended March 31, up 28%. They have transited more than 600 additional vehicles to the Gulf country for final assembly.

On the other hand,  Rivian reported a 36% drop in first-quarter deliveries as the electric vehicle manufacturer struggles with low demand.

Amazon is backing Rivian by being the major shareholder in the EV company. It has ordered the EV maker to produce 100,000 electric delivery vans, a crucial part of Amazon‘s plan to electrify its last-mile delivery fleet. It also coincides with Amazon’s goal to reduce carbon emissions by 2040.

Rivian has faced fierce competition as consumers choose less expensive gas and hybrid cars in an unpredictable political and economic environment.

Rivian delivered 8,640 vehicles in the quarter that ended on March 31, down from 13,588 the previous year. However, the deliveries are more than what analysts estimate at 8,200.

Andres Sheppard, senior equities analyst at Cantor Fitzgerald, stated that the industry is currently unfavorable, but it will take some years for these companies to ramp up their demand since EVs are inevitable in the medium to long term.

Rivian CFO Claire McDonough stated that this year’s car deliveries would be less because of weak demand, partly due to the Los Angeles fires.

Demand could be strained since US President Donald Trump‘s tariff plans are predicted to speed up inflation and raise car prices, making consumers question committing to big purchases.

Rivian CEO RJ Scaringe stated earlier that the company expects higher expenses due to tariffs on Canada and Mexico as it has a supply chain footprint in these countries.

It plans to release its quarterly financial results and reaffirm its annual output forecast after markets close.

Rivian is putting its money on the release of its less costly R2 next year to boost demand and compete with EV giant Tesla’s Model Y.

Tesla is also struggling with demand. Its quarterly sales fell 13% to the weakest in nearly three years due to the backlash against CEO Elon Musk’s politics, rising global competition, and people waiting for an update on its best-selling electric vehicle, Model Y.

Tesla announced that they will offer three-year interest-free loans for the refreshed Model Y before April 30 in China to boost its demand.

In January, Lucid Motors became the first international automaker to sign up for the Kingdom’s “Made in Saudi” program. It gives the company the authority to use the “Saudi Made” badge on its goods.

Lucid’s involvement in the program comes after the company opened its first overseas manufacturing facility in Saudi Arabia in September 2023.

The Kingdom’s first automobile manufacturing plant is situated in King Abdullah Economic City. In its first phase, it can produce 5,000 Lucid vehicles a year.

Once it is fully operational, it can produce up to 155,000 electric vehicles annually.