Lucid reported first-quarter deliveries above market expectations after price cuts helped boost demand for its luxury electric sedans, sending its shares up about 3%, Reuters reported.

The EV startup handed over 1,967 vehicles in the first quarter, compared with estimates of 1,745, according to eight analysts.

Lucid last February cut prices of its flagship Air sedans by 1% to 10% to support demand at a time when consumers were rethinking EV purchases and turning to more affordable hybrid alternatives due to high interest rates, the report noted.

Rivian Automotive also beat estimates for quarterly deliveries last week but worries about overall EV demand have deepened after US market leader Tesla reported a quarterly decline in deliveries for the first time in nearly four years earlier in April and missed expectations, Reuters said.

Lucid made 1,728 vehicles in the quarter ended 31 March, below estimates of 2,123, and compared with 2,391 in the preceding three months.

"In the second half of this year, Lucid is going to continue to ramp up deliveries to Saudi Arabia. I do see them improving both production and deliveries throughout the rest of the year," an analyst told Reuters.

Reuters noted Lucid had said last month it was raising US$1bn in capital from Ayar Third Investment, an affiliate of Saudi Arabia's Public Investment Fund. The capital injection could give the firm an advantage over other cash strapped EV startups that are dealing with expensive production ramp ups.