A buzzy EV startup charts plan to buck the trends

State of play: "I believe that the only viable solution for an affordable, usable pickup truck today is internal combustion," he tells Axios.

• Rawlinson argues the miles per kilowatt hour are too small for anything with a big payload, so the battery costs are huge.
• "This is the wrong product, and so we're seeing that companies are not making a viable profit by trying to make an electric pickup truck."
• The comments come as startups and legacy automakers — such as Rivian, Chevy, Ford and Tesla — are selling electric pickups.

Reality check: The company must figure out how to go from buzzy startup to truly commercial automaker.

• Lucid reported record deliveries of roughly 2,400 models of its Air sedan last quarter, but it still operates at a big loss as it pours cash into scaling, and the company announced layoffs in May.
• But it has more runway than some startups, in part thanks to Saudi Arabia's sovereign wealth fund investing $6.4 billion since 2018.

Driving the news: Rawlinson was in Washington on Friday for an event on a nonbinding deal with Graphite One.

A few highlights ...

📈 He's confident about scale. Rawlinson doesn't think the recent slowdown in EV demand growth will be a meaningful barrier to sharply boosting output.

• "If you look at us, I could say, 'What slowdown?,'" he said, noting their Q2 deliveries were up 70% and deliveries have risen four consecutive quarters.
• Lucid is moving ahead with plans to launch production of its recently unveiled second vehicle — the Gravity SUV — late this year. A lower-cost model now known as "Project Midsize" would start production in late 2026.
• "You do the math and my vision, my dream — that we could get to a million cars a year by the early 2030s — is totally realistic," he said.

🗳️ Election? What election? Rawlinson doesn't sound outwardly concerned about the U.S. election, even though Donald Trump has pledged to pare back federal EV support.

• To date, Lucid's vehicles have not qualified for consumer purchase subsidies anyway — the 2022 climate law expanded these credits' availability but also imposed new price and sourcing restrictions. But they do qualify for IRA leasing incentives.
• "I believe we've got world-leading technology which can stand on its own ... I think this is a tech race," Rawlinson said, though noted he appreciates separate manufacturing credits available under the climate law.

⚔️ He took fresh jabs at Tesla. Rawlinson is a former Tesla VP and engineer but in recent years has sparred with his former employer.

• When I asked about the election, he steered the question to his former boss. "Unlike someone else, I'm not distracted by politics," he said, referring to Elon Musk.
• Elsewhere, Rawlinson noted that "Tesla has thrived through massive, profound government support."
• He's also eyeing Tesla with "Project Midsize." Without providing details, he vows it will be "overtly a [Tesla] Model 3, Model Y competitor."

⏸️ Lucid's staying out of stationary storage for now, despite limited exploration. Rawlinson said they did make some prototypes but isn't jazzed about the commercial prospects.

• "My fear is that that whole market is dangerously close to becoming commoditized and scale-driven, and that is influencing how much focus I've put on it, because we're a tech company."
• He contrasted that to Lucid's automotive battery efficiency and other EV technologies. Still, "never say never," he said.

🤝 Partnering with a big automaker. Rawlinson tells me he's had "several inbound inquiries" from automakers about tie-ups with Lucid.

• He's interested in a technology licensing deal, one that would help a giant auto company mass produce low-cost EVs well below Lucid's price range (he said the "best value" for Lucid investors is in the $50,000-to-$250,000 range).
• "What we're doing is paving the way ... for more affordable cars to help save the planet," Rawlinson said.
• "My passion is to do a $25,000-$30,000 car, and I don't think we should be doing it. I think our technology should enable it for someone else."