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Lucid to lay off 1,300 employees for $24-$30M restructuring plan

Credit: Lucid Group

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On Tuesday, March 2, Lucid Group, Inc. announced plans to lay off 18% of its workforce, amounting to about 1,300 employees. The news comes after Lucid released its fourth quarter and full year (FY) 2022 financial results last month. 

Lucid plans to lay off workers to cut costs while initiating its restructuring plans. According to a regulatory filing, the Lucid layoffs will be completed by Q2 2023. The electric vehicle company expects to incur around $24 million to $30 million in charges due to its restructuring plan. Most charges will go to severance payments, employee benefits, and stock-based compensation. The layoffs will include executive positions. 

Lucid’s CEO and CTO, Peter Rawlinson, explained in an email to workers that the company has reduced costs. Unfortunately, it did not reduce costs enough to avoid layoffs. Rawlinson added that Lucid’s restructuring plan results from its “evolving business needs and productivity improvements.” 

“Consequently, we’ve made the painful but necessary decision to let some of our talented members go,” Rawlinson wrote in his email. “We are also taking continues steps to manage our costs by reviewing all non-critical spending at this time.” 

In its fourth quarter and Full Year 2022 financial results, Lucid set its 2023 annual production guidance between 10,000 to 14,000 vehicles. Last year Lucid Motors produced approximately 7,180 vehicles, topping its forecast of 6,000 to 7,000 in 2022. However, analysts pointed out that Lucid’s production forecasts for 2022 were slashed multiple times. Lucid was initially expected to produce 20,000 vehicles last year. 

Lucid stock slid after the release of its Q4 and FY 2022 report when it revealed a significant revenue miss in the fourth quarter. The company delivered 1,932 vehicles in Q4 2022, missing analysts’ estimates of 2,813 cars. 

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Many analysts believe Lucid’s performance is due to waning demand for luxury electric vehicles. Indeed, EV manufacturers are leaning towards producing affordable all-electric cars. For instance, Volkswagen beat Tesla to the punch when it announced the launch of the affordable VW ID.2 car. Tesla is expected to unveil its $25,000 electric vehicle soon, too. 

Lucid Announces Q4 & Full Year 2022 Financial Results by Maria Merano on Scribd

The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via Twitter @Writer_01001101.

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla best-rated car brand in UK, beats Toyota in reliability: survey

The survey asked readers to rate their cars across metrics like efficiency, reliability, practicality, safety, comfort, and performance.

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Credit: Tesla China

Tesla critics would typically paint the company’s electric vehicles as reliability nightmares with subpar build quality and cheap materials. As per a survey from the U.K., however, the opposite is true, as Tesla is not just the country’s overall best-rated car brand, it is also the second most reliable carmaker.

The survey was conducted by HonestJohn.co.uk, which asked its readers to rate their cars across several metrics, such as efficiency, reliability, practicality, safety, comfort, and performance. Over 6,000 respondents participated in the recent survey.

UK’s Overall Best-Rated Car Brand

Based on the respondents of the Honest John Satisfaction Index survey, Tesla was the U.K.’s best-rated car brand for 2025 with a satisfaction index rating of 89.41%. In second place is Japanese premium carmaker Lexus, which garnered a satisfaction index rating of 86.32%. In third place is Porsche, which garnered a satisfaction index rating of 84.79%.

Tesla’s Reliability Surprise

While Tesla’s high customer satisfaction index scores in the survey were not that shocking, the company’s rankings in reliability are especially surprising. Tesla critics typically accuse Tesla of producing vehicles that are not reliable or are prone to imperfections like panel gaps. But as can be seen in the U.K. survey, Tesla’s reliability has actually improved a lot. 

Tesla’s reliability rating in the Honest John survey was an impressive 95.29%. That’s just below Lexus, which was the number one at 97.01%. Tesla was also above Toyota, which was in third place with a reliability rating of 94.65%.

What Honest John Says

In its rankings for the U.K.’s most reliable car brands, Honest John highlighted that while Tesla tended to be hit or miss with things like build quality in the past, the company has matured a lot in recent years. 

“While we were always impressed by the technology within Tesla’s range of exclusively electrically powered cars, build quality seemed to be a little hit and miss, to say the least. Evidently, matters have improved significantly in this regard according to our readers’ feedback as not only has the brand scored well for reliability across its four-strong range but the Tesla Model 3 was also rated as the most satisfying car to own overall,” the publication wrote. 

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Tesla Unveils Model Y RWD 110 customized for Singapore

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(Credit: Tesla Singapore)

Tesla unveiled the Model Y RWD 110 for Singapore’s Category A certificate of entitlement (COE) rules. This custom SUV tweaks the updated Model Y, which was launched in Singapore in January.

Tesla tuned the Model 3 RWD 110 for Singapore before, and that customized version’s success spurred this Model Y adaptation. The Model Y RWD 110 runs at 110kW, down from 255kW in the standard RWD. It qualifies for Singapore’s Category A COE, unlike the Model Y 255kW version, which sits in Category B.

Category A COEs are for mass-market cars. They score lower premiums than Category B COEs. BMW and Mercedes-Benz register vehicles as Category A COEs in Singapore as well.

In Singapore, buyers need to pay the COE to register a car. The latest tender showed an SGD 22,388 gap between Category A and B premiums.

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The Model Y RWD 110’s road tax is significantly reduced from SGD 3,478 to SGD 1,562 yearly. The Strait Times calculated that the cheaper Model Y in Singapore would save SGD 19,160 over a 10-year COE.

The Model Y RWD 110 matches the 255kW version otherwise. The more affordable Model Y’s battery size holds steady. Its energy use, equipment, and design stay the same.

Tesla prices the Model Y RWD 110 at SGD 103,476 before COE. The Model Y RWD 110 costs SGD 3,026 less than the 255kW version, excluding COE costs. It uses a 62.5kWh lithium iron phosphate battery.

Tesla has released cheaper versions of its cars before. For instance, it rolled out a more affordable Model 3 in Mexico last year. The cheaper Tesla Model 3 in Mexico did not use the same materials and had different features to reduce costs.

Tesla might consider releasing custom, cheaper versions of its vehicles in other countries. Industry sources in China hint at a “lower-priced Model Y” for the Chinese auto market, which keeps the Juniper’s battery and chassis

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Tesla US Gigafactories shields from Trump’s 25% Tariffs

Tesla US Gigafactories Shielded from Trump’s 25% Tariffs

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Credit: Elon Musk/X

Tesla stocks climbed after U.S. President Donald Trump announced tariffs on imported cars and auto parts, standing out in the United States auto industry.

Automaker stocks tanked after President Trump slapped 25% tariffs on foreign autos and parts. Tesla slightly dodged the tariff blow thanks to local production. Its gigafactories in China and Germany don’t supply Tesla vehicles to the United States market. The company builds all U.S.-sold EVs in Fremont, California, or at Giga Austin in Texas.

TD Cowen analyst Itay Michaeli sees the American EV automaker as a winner in Trump’s tariffs games.

“Tesla [is] a relative beneficiary given [its] 100% U.S. production footprint, substantial U.S. sourcing, and with Model Y competing in a midsize crossover segment where close to ~50% of vehicles could be subject to tariffs,” Michaeli wrote on Thursday.

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Rivian and Lucid also make all vehicles sold in the United States domestically. Ford hits 77% U.S. production, while Stellantis sits at 57%. Nissan and GM each clock in at 52%.

Trump’s 25% tariff on non-U.S.-made vehicles kicks in next week, on April 2, 2025. Elon Musk confirmed that Trump’s tariff will still affect Tesla, despite its plants in America.

Musk posted on X about tariff impacts. He said foreign-sourced parts will drive up costs. It’s not a small hit. Tesla warned of this in a letter to the U.S. Trade Representative. “Certain parts and components are difficult or impossible to source within the United States,” the letter stated, even with “aggressive localization.”

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