Introduction:
The electric vehicle (EV) maker Lucid (LCID) recently reported its first-quarter results, which were a mix of positive and negative news. While the company exceeded revenue expectations, it also reported a wider-than-expected loss per share. Despite this, Lucid confirmed that its Gravity SUV is still on track for a 2024 debut. In this article, we will delve into Lucid’s first-quarter performance, its production and delivery numbers, its capital expenditures, and its cash position, as well as its ongoing partnership with the Public Investment Fund (PIF) of Saudi Arabia.
In the first quarter, Lucid reported revenue of $172.7 million, surpassing expectations of $150.1 million and showing a nearly 16% increase from the previous year. However, the company posted a loss per share of $0.30, higher than the estimated $0.25. Additionally, Lucid’s adjusted EBITDA loss came in at $598.4 million, compared to the $505.1 million forecast by analysts per Bloomberg.
Last month, Lucid revealed that it produced 1,728 vehicles and delivered 1,967 vehicles in the first quarter, compared to 2,391 vehicles produced and 1,734 vehicles delivered in the previous quarter. The company stated that it aims to produce 9,000 vehicles in 2024, with 8,428 vehicles produced and 6,001 delivered in the previous year.
Lucid’s recent EV price cuts announced in February likely contributed to increased sales but impacted the company’s margins. Additionally, capital expenditures for its Gravity production activities totaled $198.2 million in the quarter, with projected expenditures of $1.5 billion in 2024. These expenses may have further influenced the company’s financial performance for the quarter.
Despite the challenges, Lucid reported a strong cash position, with $4.62 billion in cash and cash equivalents on hand, providing liquidity until the second quarter of 2025. In late March, the company secured a $1 billion investment from its majority shareholder, Ayar Third Investment Company, an affiliate of Saudi Arabia’s PIF. This funding agreement underscores the ongoing partnership between Lucid and the PIF.
Following the announcement of its first-quarter results, Lucid’s shares experienced a post-market decline of over 32% year-to-date. Despite this setback, Lucid CEO Peter Rawlinson remains optimistic about the company’s future, emphasizing its superior technology and partnership with the PIF. The company is focused on delivering the Gravity SUV in 2024 and launching a midsize vehicle in 2026, showcasing its commitment to innovation and growth in the EV market.
In conclusion, Lucid’s first-quarter results reflect a combination of achievements and challenges as the company navigates the competitive EV landscape. With a strong cash position, ongoing production milestones, and strategic partnerships, Lucid remains poised for future success in the rapidly evolving electric vehicle industry.