Lucid Group, a prominent U.S. luxury electric vehicle (EV) manufacturer, is gearing up to enter the Chinese auto market, revealed Zhu Jiang, the company’s head of China operations. While Lucid initially plans to sell imported cars in China, it is also considering local production, according to an anonymous source. Although Zhu confirmed Lucid’s preparations for entering the Chinese market, he refrained from commenting on specific plans regarding local manufacturing.
Zhu brings extensive industry experience to Lucid, having previously worked at Jidu Motor, the EV division of local technology giant Baidu, and served as Ford Motor’s project leader for the Mach-E in China.
In its recent announcement, Lucid unveiled its intention to raise approximately $3 billion through a stock offering, with the Saudi Arabian Public Investment Fund (PIF) contributing around two-thirds of the total amount. Zhu emphasized that this funding would enable Lucid to accelerate the deployment of advanced EV technology and deliver exceptional product experiences to global consumers.
China, a significant player in the EV market, eagerly anticipates Lucid’s entry. However, the company faces challenges like its competitors, such as mounting losses, limited cash reserves, concerns about a potential recession, and the ongoing price war ignited by market leader Tesla.
In response to these market conditions, Lucid adjusted its 2023 production forecast last month and reported lower-than-expected revenue for the first quarter. CEO Peter Rawlinson identified rising interest rates as a significant challenge for the industry.
While in the United States, Lucid has been cautious about reducing prices on its Air luxury sedan, which carries a starting price of $87,400.
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