Lucid Group Inc.’s first-quarter web losses widened as gross sales got here underneath strain after aggressive worth cuts from EV market chief Tesla Inc., sending shares decrease greater than 8 % in prolonged buying and selling.

The EV startup’s web loss for the primary three months of the yr stood at $779.5 million, in contrast with $604.6 million, a yr earlier.

Tesla’s transfer to chop costs and enhance quantity, a technique which CEO Elon Musk mentioned is a part of the EV maker’s recession playbook, has harm newer entrants equivalent to Lucid and Rivian.

Lucid final month reported first-quarter manufacturing and supply figures decrease than within the previous three months, as larger borrowing prices following the Federal Reserve’s rate of interest hikes hit shopper spending.

CEO Peter Rawlinson mentioned in an announcement on Monday the corporate was on observe to supply over 10,000 automobiles in 2023, in contrast with an earlier forecast for 10,000 to 14,000 models this yr.

The corporate reported quarterly income of $149.4 million, in contrast with analysts’ common estimate of $209.9 million, based on Refinitiv.

Lucid CFO Sherry Home added that the corporate has $4.1 billion in liquidity, sufficient to fund the luxurious EV maker not less than into the second quarter of subsequent yr.

Musk has mentioned Tesla is keen to sacrifice margin for gross sales quantity however can be trying to transfer costs again larger, the place it could, to match deliveries with output.

Lucid had money and money equivalents of $900 million on the finish of the primary quarter, in contrast with $1.74 billion within the fourth quarter.

Lucid is about to unveil its Gravity SUV later this yr forward of its launch in 2024.