(Reuters) -Lucid reported first-quarter deliveries above market expectations on Tuesday as price cuts helped boost demand for its luxury electric sedans.
Shares of the California-based company rose around 1% in premarket trading.
The company handed over 1,967 vehicles in the first quarter, compared with estimates of 1,745, according to eight analysts polled by Visible Alpha.
Lucid (NASDAQ:)’s upbeat deliveries reflect the demand for its vehicles has remained resilient after the electric vehicle startup cut prices of its flagship Air sedans by 1% to 10% in February to attract buyers.
The company made 1,728 vehicles in the first quarter ended March 31, below estimates of 2,123, and compared with 2,391 in the preceding three months.
The company said last month it is raising $1 billion in capital from Ayar Third Investment Company, an affiliate of Saudi Arabia’s Public Investment Fund.
The capital injection provides a boost to Lucid’s funds, giving the firm an advantage over other cash-strapped EV startups burning through cash as they ramp up production.
Lucid’s deliveries mirror that of sector peer Rivian (NASDAQ:) Automotive which also beat estimates for quarterly deliveries fueled by strong demand for its electric pickup trucks and SUVs.