Lucid Group is recalling over 5,200 of its Air luxury sedans due to a software error. The recall affects vehicles produced this year and aims to correct a fault in the safety systems. The electric vehicle maker showcased its Lucid Air model with built-in Alexa at CES 2023 in Las Vegas.
This recall demonstrates Lucid’s commitment to adhering to safety standards and regulatory requirements as it develops its reputation in the competitive EV market. Fisker, another electric vehicle manufacturer, announced a global recall of more than 11,000 of its electric SUVs because of a problem with the water pump. The recall affects Fisker Ocean electric SUVs, and the company is urging owners to address the issue promptly.
Reports surfaced about a potential malfunction in the water pump that could lead to overheating and drivetrain issues. Fisker emphasized the importance of consumer safety and has set up a process for owners to bring in their vehicles for inspection and necessary repairs at no cost. The company is reaching out to vehicle owners with detailed instructions on how to proceed and has set up service centers globally to handle the recall efficiently.
Lucid and Fisker issue recalls
Fisker encourages all affected customers to respond quickly to the recall notice to prevent potential hazards. Lucid Group experienced a dip in trading after issuing recalls for its Air luxury sedans, impacting 5,251 vehicles from model years 2022 and 2023.
The recall was prompted by a software error that could cause an unexpected loss of power while the vehicle is in Drive or Reverse. Lucid addressed this issue with a software update last month, preventing the activation of the High Voltage Interlock safety mechanism in Drive or Reverse and instead displaying a warning to the driver. The company also announced a recall for another 7,506 Air luxury sedans from model years 2022 to 2024 due to a malfunction in the coolant heater that could fail to defrost the windshield.
Affected vehicles receive a software update to detect high-voltage coolant heater failures and provide warnings to drivers. Despite the recalls, Lucid reported robust Q2 vehicle deliveries with the production of 2,110 vehicles and 2,394 units delivered. This is an increase from the first quarter, where the company produced 1,728 vehicles and delivered 1,967 units.
Analysts maintain a Hold consensus rating on LCID stock, based on six unanimous Hold ratings. The stock has an average price target of $3.22, implying a 5.2% upside potential from current levels.
