ZINGER KEY POINTS
- A weak economy has prompted EV companies to adjust prices and offer promotions to stimulate demand.
- This strategy has its impact as it can pressure margins and, in turn, the bottom line of companies.
Electric vehicle upstart Lucid Group Inc. which reported a dip in reservations in the third quarter, is going all out to prevent further cancellations, multiple reports said.
What Happened:
Rival Tesla Inc. CEO Elon Musk on Friday weighed in on the development.
Lucid has changed its procedure to cancel vehicle orders, a Drive Tesla report said, citing Business Insider. New emails send to employees reportedly suggested they should proceed with the objective of saving an order when a cancellation request comes in.
Such requests are to be handled at three levels — case owner, manager and regional manager — each of whom will be striving to salvage the order by contacting the custiomer within five days.
The report also cited Barron’s story that said Lucid is offering up to 10% discount to customers who ordered a Grand Touring after prices were raised. Employees are also reportedly given an $18,000 discount for its 2022 model Grand Touring before the end of the year.
When Drive Tesla shared the report in a tweet, Musk said, “They are not long for this world,” apparently suggesting the luxury EV maker will go down under.
They are not long for this world
— Elon Musk (@elonmusk)
Incidentally, Musk had previously prophesied doomsday for Lucid and another startup Rivian Automotive Holding Inc. In an interview with @teslaownersSV earlier this year, the billionaire said unless something changes significantly with Rivian and Lucid, they will both go bankrupt.
Price Action:
In premarket trading on Friday, Lucid shares were rising 0.81% to $8.75, according to Benzinga Pro data.
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Originally Posted December 9, 2022 – Elon Musk, In A Rare Move, Says This Tesla Rival Is ‘Not Long For This World’
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