Electric vehicle manufacturer Lucid (NASDAQ:LCID) experienced a setback as it reported a mixed performance in the first quarter, with a wider-than-expected loss overshadowing the confirmation of its Gravity SUV’s scheduled debut in 2024.
Lucid’s quarterly revenue reached $172.7 million, surpassing expectations of $150.1 million and marking a nearly 16% increase from the previous year. However, the company reported a loss per share of $0.30, higher than estimates of $0.25. Additionally, its adjusted EBITDA loss amounted to $598.4 million, exceeding the forecast of $505.1 million by analysts per Bloomberg.
CEO Peter Rawlinson expressed optimism despite the challenges, stating, “Our sales momentum is building, our focus upon cost remains relentless, and we believe Gravity is on track to become the best SUV in the world.” Lucid confirmed that its Gravity SUV remains on schedule for a “late 2024” production start, with a midsize vehicle slated for launch in late 2026.
Following the announcement, Lucid’s stock dropped 5% in after-hours trading.
In the previous month, Lucid disclosed that it produced 1,728 vehicles and delivered 1,967 vehicles in Q1, compared to 2,391 vehicles produced and 1,734 vehicles delivered in Q4. The sequential increase in deliveries provided a positive outlook for investors. The company aims to produce 9,000 vehicles in 2024, building on the 8,428 vehicles produced and 6,001 delivered in the previous year.
Lucid’s decision to slash EV prices in February likely stimulated sales but impacted margins. Capital expenditures for Gravity production activities further affected margins, with expenses totaling $198.2 million in the quarter and expected to reach $1.5 billion in 2024.
Regarding its financial position, Lucid reported $4.62 billion in cash and cash equivalents, providing liquidity until Q2 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 Public Investment Fund (PIF).
Rawlinson highlighted Lucid’s distinctive strengths, emphasizing the company’s superior, in-house technology and its partnership with the PIF as two key factors that set Lucid apart.
Despite the recent decline in stock value, Lucid shares have fallen by over 32% year to date.
Featured Image: Megapixl
