Lucid Electric Vehicle Deliveries Surge 46.6% Boosted by US Tax Incentives

Lucid Motors posted a 46.6% jump in third-quarter sales, driven by customers rushing to buy electric vehicles before U.S. tax credits expired last week. But the numbers still fell short of what Wall Street analysts expected, highlighting the challenges facing the luxury EV maker.

The company delivered 4,078 vehicles in the third quarter, up from 2,781 cars delivered in the same period last year. However, this missed the average analyst estimate of 4,286 deliveries tracked by Visible Alpha.

The sales boost came as buyers tried to take advantage of $7,500 federal tax credits before they expired. Now Lucid and other EV companies are preparing for a sharp drop in sales during the final three months of the year.

Some automakers are cutting prices and finding ways to extend credit benefits to customers. Others are reducing production plans, expecting a slowdown in demand.

The electric vehicle sector already faces headwinds from higher tariffs on car imports and parts coming into the United States. Even though Lucid builds its cars domestically, it still imports some components from overseas.

Here's where it gets tricky for Lucid: their vehicles weren't eligible for tax credits on cash purchases. But the company found a workaround by using the credits to offer attractive leasing deals to customers.

The broader EV market is dealing with multiple pressures right now. Higher tariffs are making imported parts more expensive. The end of tax incentives removes a key selling point for many buyers. And economic uncertainty has some consumers holding off on big purchases like cars.

For investors watching Lucid, the mixed results show both promise and concern. The year-over-year growth is solid, but missing analyst targets suggests the company still struggles with production scaling and market demand predictions.

The coming quarter will be a real test. Without the tax credit incentive driving sales, Lucid will need to rely on the appeal of its luxury electric sedans and competitive leasing programs to maintain momentum.