Lucid Failed To Meet Its Revenue Expectations Due To Disappointing Electric Vehicle Deliveries

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Lucid Group, a luxury electric vehicle manufacturer, reported lower-than-expected revenue in the second quarter due to delivering fewer Air luxury sedans than anticipated. However, the company’s recent capital raise has extended its runway up to 2025. Additionally, Lucid has started shipping vehicles to Saudi Arabia as part of a deal with the country’s Ministry of Finance to purchase at least 50,000 and up to 100,000 of its EVs over the next decade.

According to Refinitiv, the company’s second-quarter report showed a loss per share of 40 cents; But it is unclear if this is comparable to Wall Street’s expected loss of 33 cents, as reported by analysts. Lucid’s revenue for the quarter was $150.9 million, falling short of the expected $175 million.

In the second quarter, Lucid reported a net loss of $764.2 million or 40 cents per share, which is higher than the net loss of $555.3 million or 33 cents per share from a year ago. However, revenue for the quarter increased to $150.9 million from $97.3 million in the same period in 2022.

In July, Lucid delivered 1,404 Air sedans in the second quarter, which is 600 fewer than what Wall Street expected. In the first quarter of 2023, the company delivered 1,406 vehicles, while in the second quarter of 2022, it delivered 679 Vehicles.

According to CFO Sherry House, Lucid had $6.25 billion in available funds at the end of the second quarter. This includes $5.5 billion in cash and the rest in credit lines. With this amount, the company can continue its operations until 2025. As of March 31, the company had $3.4 billion in cash and $700 million in credit lines, which was sufficient to support its operations until the second quarter of 2024. In May, Lucid raised approximately $3 billion through a stock offering.

Despite a claimed “more than 28,000 reservations” for the Air, Lucid reaffirmed its production guidance in May, stating that it expected to produce “over 10,000” vehicles in 2023. In February, it had originally estimated 2023 production of between 10,000 and 14,000 Vehicles.

Since Lucid’s last update on Air reservations, it has been evident for several months that the company is experiencing a lack of demand for their expensive yet highly reviewed sedan. To stimulate demand and compete with other electric vehicle rivals such as Tesla, Lucid announced on Saturday that it would reduce Air prices by up to $12,400. The base model Air Pure now costs $82,400 after a $5,000 price cut. Meanwhile, the Touring and Grand Touring models’ prices have been slashed by $12,400, costing $95,000 and $125,600, respectively. The new Prices apply to Both the cars in Lucid’s inventory and those being built to order. While supplies last, the reduced prices on existing vehicles will be valid. Lucid has not disclosed the number of vehicles currently in its inventory.

Lucid Short (Sell)
Enter At: 6.28
T.P_1: 6.03
T.P_2: 5.70
T.P_3: 5.44
T.P_4: 4.65
T.P_5: 3.82
T.P_6: 2.88
S.L: 8.50

Lucid Group
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