Lucid returning to original price structure, CEO explains

EV maker Lucid (LCID) is prepping to unveil its new electric Gravity SUV. Yahoo Finance's Pras Subramanian catches up with Lucid CEO Peter Rawlinson at the 2023 Pebble Beach Concours d'Elegance, discussing the company's new price structure and its plans for the Gravity SUV's release in November.

Video transcript

RACHELLE AKUFFO: The creme de la creme for car collectors, Pebble Beach Concours d'Elegance, the annual gathering of rare antique and international motor cars took place over the weekend. Car enthusiasts all over the world showed up, including our very own Pras Subramanian. He joins us now. So Pras, set the scene for us. What was the event like?

PRAS SUBRAMANIAN: Hey, Rachelle. Yeah, lots of action there in Monterey over the weekend. We saw a 1937 Mercedes win Best of Show there at the Concours d'Elegance and around $400 million in classic car sales at auction. But it wasn't just classic cars on display on the 18th Green at Pebble Beach.

We saw a number of automakers announce new cars during the week, from Lamborghini to Mercedes, even Acura had an EV. One company that had presence was Lucid Motors. Lucid's Air EVs were everywhere, shuffling attendees around, and offering test drives for various people.

Now, though a new car was not on display, CEO Peter Rawlinson told me the recent price cuts of the Air sedan were working, and that Lucid's upcoming EV, the Gravity SUV was going to debut soon. Here's what he had to say.

PETER RAWLINSON: We reverted to our original pricing, which I think we've got about right. We hit some really inflationary challenges, particularly in batteries, as we got into the summer of '22. We had to take a price action accordingly. But I'm delighted to say we're back to our original pricing structure. And that's been so well received by customers and the market alike.

PRAS SUBRAMANIAN: And so you mentioned the [? call ?] in second quarter earnings [? call ?] are you seeing a lift in orders, is that correct?

PETER RAWLINSON: It is true, yes, absolutely.

PRAS SUBRAMANIAN: You can't speak to that of how much, how little or is it significant--

PETER RAWLINSON: Well, we're just waiting for our Q3 earnings for that.

PRAS SUBRAMANIAN: I tried, I tried.

PETER RAWLINSON: We're going to have a real launch event, an unveiling this November. So watch this place. There's going to be a world premiere. And I'm really excited. We've got the Alpha prototype fleet running around. We've got over 30 cars driving around right now. The dynamics are really exciting. It's going to be a 7-seat, 3-row all electric SUV, truly state of the art. And I'm really excited at the prospect of unveiling this to the whole world this November.

PRAS SUBRAMANIAN: So we knew that Gravity SUV would be revealed sometime this year. But now we're getting a timeline of November.

RACHELLE AKUFFO: So Pras, I have to ask you your favorite car that you saw at Pebble Beach this year.

PRAS SUBRAMANIAN: You know, I saw a number of amazing cars. They had the Cannonball Run Lamborghini Countach at Pebble Beach, the 18th Green on Sunday. But I got to say, I saw there was a Porsche anniversary there for the 959, a very special 911 came out in the early 90s or so. That's around the time that I was a young child back then, and I used to have that car as a poster on my wall. And I love that car and to see that a group of them in this, I mean, we talking about 10 of them in one place, absolutely incredible.

RACHELLE AKUFFO: I usually like a vintage Daimler. But there were so many gorgeous cars, I'm so jealous that you got to go. I will be living vicariously through you as always. Our [? very own ?] Pras Subramanian, thank you so much.

PRAS SUBRAMANIAN: Thanks