U.S. luxury EV maker Lucid aims for China market

STORY: U.S. Tesla-rival Lucid is gearing up to enter China.

That's according to its head of operations for the country.

A source said Lucid would sell imported cars in China while it considers local production there.

The luxury EV maker confirmed it was preparing to enter the the world's largest auto market, but didn't comment on plans for local production.

Last week, Lucid said it planned to raise about $3 billion through a stock offering.

Almost two-thirds of that will come from Saudi Arabia's Public Investment Fund.

Like its rivals, Lucid is battling growing losses and tightening cash reserves.

That as companies fear a potential recession, and a price war started by market leader Tesla.

The China update comes a month after Lucid cut its production forecast for this year.

It also reported lower-than-expected first-quarter revenue.

In the U.S., the firm has largely held back from lowering prices on its Air luxury sedan, which has a starting price of $87,400.