EV maker Lucid (LCID) reported blended first quarter outcomes as a wider-than-expected loss trumped the corporate’s affirmation that its Gravity SUV continues to be on monitor for a 2024 debut.
For the quarter, Lucid reported income of $172.7 million, topping expectations of $150.1 million and practically 16% increased than a yr in the past. Lucid’s loss per share, nevertheless, got here in at $0.30, increased than estimates of $0.25, with its adjusted EBITDA loss coming in at $598.4 million in comparison with the $505.1 million forecast by analysts per Bloomberg.
“Our gross sales momentum is constructing, our focus upon price stays relentless, and we imagine Gravity is on monitor to change into the perfect SUV on this planet,” Lucid CEO Peter Rawlinson stated in a press release. Lucid confirmed its Gravity SUV was set for a “late 2024” manufacturing begin, and its upcoming midsize automobile was slated for a late 2026 launch.
Lucid inventory was down over 8% in after-hours buying and selling.
Final month, Lucid introduced that it produced 1,728 automobiles and delivered 1,967 automobiles within the first quarter, in comparison with 2,391 automobiles produced and 1,734 automobiles delivered in This autumn. The sequentially increased supply numbers have been constructive information for traders, and the corporate stated that it’s focusing on 9,000 automobiles produced in 2024. Final yr, Lucid produced 8,428 automobiles and delivered 6,001 to purchasers.
Lucid’s newest spherical of EV worth cuts introduced in February possible boosted gross sales, however there was concern it impacted the corporate’s margins, which Lucid does not formally get away.
“Should you have a look at in Q1, regardless of the pricing actions we took within the present quarter, our gross margin improved sequentially and that was because of price optimization initiatives that have been taking within the firm, and expertise is enjoying a vital position — battery prices, you recognize, [have] come down,” Lucid interim CFO Gagan Dhingra stated to Yahoo Finance in a name shortly after Lucid’s earnings launch.
Dhingra additionally famous the corporate labored with suppliers to convey down invoice of fabric (BOM) prices, in addition to logistics prices, to enhance margins.
One other space of concern for traders is capital bills incurred for its Gravity manufacturing actions. Lucid stated capital expenditures hit $198.2 million within the quarter, with expenditures anticipated to tally $1.5 billion in 2024.
Rawlinson was optimistic that these prices would repay for Lucid. “I am actually optimistic that [Gravity] goes to offer us nice scale, and a lot of the price construction isn’t concerning the BOM in itself — it is concerning the economies of scale by way of amortizing these rattling fastened prices, and what we want is quantity and I imagine that Gravity is gonna give us quantity,” Rawlinson stated to Yahoo Finance.
By way of its money place, Lucid stated it had $4.62 billion in money and money equivalents available, sufficient liquidity to final into the Q2 of 2025. Lucid introduced in late March that it struck a funding settlement with its majority shareholder Ayar Third Funding Firm for a $1 billion funding. Ayar is an affiliate of Saudi Arabia’s Public Funding Fund (PIF).
“We’re a cornerstone of [Saudi Arabia’s 2030] imaginative and prescient, we’re mutually incentivized for achievement,” Rawlinson stated relating to Lucid’s deep ties with Saudi Arabia’s PIF sovereign wealth fund. “PIF desires us to succeed, this is not like a standard mere monetary funding. However why are they assured in us? As a result of what differentiates us is that we have got the world’s highest expertise within the area.”
Pras Subramanian is a reporter for Yahoo Finance. You possibly can comply with him on Twitter and on Instagram.
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