Lucid Motors, the pure-play electric vehicle maker, reported disappointing Q1 revenue and earnings, causing its shares to fall in after-hours trading. While the revenue of $149.4 million was significantly higher than the $57.7 million reported a year ago, it fell short of expectations, which were set at $197.8 million. Lucid also reported an adjusted EPS loss of $0.43, wider than the $0.40 loss per share that was expected by Wall Street.
Despite these setbacks, Lucid said it ended the quarter with approximately $4.1 billion total liquidity, which is expected to fund the company into at least Q2 of 2024. The company's CEO, Peter Rawlinson, also reassured investors that the company was on track to produce over 10,000 vehicles in 2023, with plans to pivot to higher volumes as market conditions allow. He added that Lucid would unveil its Gravity SUV later this year, ahead of its launch in 2024.
In Q1, Lucid produced 2,314 vehicles, but delivered only 1,406 of those cars to customers. The company is aiming to produce between 10,000 and 14,000 vehicles in 2023, with production on track to meet the lower end of that range. Lucid also announced a $7,500 "credit" for certain Air sedans in Q1 to boost sales, as its sole product doesn't qualify for the $7,500 federal EV tax credit.
Lucid's stock shot up in January on speculation that Saudi Arabia's Public Investment Fund (PIF) would buy out the remainder of the company it doesn't already own and take it private. PIF currently has a stake of approximately 65% in Lucid, and the partnership between the two companies goes beyond a financial agreement. Last year, Lucid announced that it would be building a factory in Saudi Arabia, with a planned annual capacity of 155,000 EVs a year.
Looking ahead, investors are likely to have questions about the future of Lucid's ownership structure and its status as a public entity. While the company's stock was down around 4% in after-hours trading, Lucid's long-term prospects remain strong, given its focus on high-end electric vehicles and its partnerships with Saudi Arabia's PIF.
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