Lucid Motors is expecting improved sales in the second half of the year due to price cuts, deliveries to Saudi Arabia, and the launch of new versions of its Air sedan. CEO Peter Rawlinson announced that Lucid will deliver Air models to the Saudi market as part of an agreement to sell 50,000 vehicles to the government over the next decade. Additionally, Lucid will sell cars to consumers in Saudi Arabia. The Public Investment Fund of Saudi Arabia, the majority shareholder of Lucid Group, recently purchased an additional $1.8 billion in shares to increase Lucid’s cash position.

In the second quarter, Lucid reported a net loss of $764.2 million, a higher loss compared to the same quarter last year. However, revenue increased by 55 percent to $150.9 million, with 1,404 vehicles delivered. Rawlinson expressed optimism for the second half of the year, highlighting the execution of the purchase agreement with the government of Saudi Arabia and positive consumer and government demand. Lucid plans to start limited production of the Air in Saudi Arabia in September by sending partially assembled vehicles from the U.S. to a new Saudi plant.

Lucid has produced 4,487 Airs and delivered 2,810 so far this year. To further boost sales, Lucid has reduced prices and plans to introduce new Air trims, including a less expensive version of the base Air Pure trim and a high-performance Air Sapphire model. The automaker also revealed its plan to launch the Gravity crossover in November, with sales expected to begin in late 2024.

Despite facing a price war initiated by Tesla, Lucid remains optimistic about its production goal of 10,000 vehicles by 2023. The company is actively raising public awareness of the brand through marketing efforts and offering test drives across the U.S. Lucid is willing to adjust prices to stimulate sales and get more cars on the road for potential buyers to see. With a cash balance of $2.78 billion at the end of the second quarter, Lucid is well-positioned for growth.

Shares in Lucid rose about 3 percent in after-market trading on Monday.

—Reuters contributed to this report