Lucid Group announced on Monday that its second-quarter deliveries surpassed analysts' expectations, driven by price reductions that boosted demand for its luxury electric sedans. This positive news led to a 6 percent increase in the company's shares during premarket trading.

The high costs of borrowing, economic uncertainties, and a consumer preference for gasoline-electric hybrids have dampened demand for electric vehicles (EVs). In response to this slowing demand, market leader Tesla and other companies, including Lucid, have cut prices and offered more incentives such as lower financing options to attract consumers. Lucid reduced the prices of its flagship Air sedans by up to 10 percent in February.

The company delivered 2,394 vehicles in the quarter ending June 30, surpassing the estimated 1,940 units according to a survey of eight analysts by Visible Alpha. This figure is also higher than the 1,967 cars delivered in the previous quarter. Lucid produced 2,110 units in the second quarter, an increase from the 1,728 vehicles produced in the preceding three months.

With Saudi Arabia's Public Investment Fund holding approximately 60 percent of its shares, Lucid announced in May that it anticipates capital expenditure of $1.5 billion in 2024, up from $910.6 million last year, as it prepares to begin manufacturing its Gravity SUV. Priced around $80,000, the Gravity SUV is scheduled to enter production later this year and will compete with Tesla's Model X. Lucid's Air sedan already competes with Tesla's popular Model S.

Rivian Automotive also reported strong second-quarter deliveries last week, while Tesla experienced a smaller-than-expected decline. In May, Lucid reaffirmed its annual production forecast of 9,000 cars for 2024, up from the 8,428 vehicles produced last year.