Lucid posts widening losses as demand concerns linger, says it has enough cash to last into 2024

In an aerial view, an indication is posted on the outside of Lucid headquarters on March 29, 2023 in Newark, California. Electrical automobile maker Lucid introduced plans to put off 1,300 staff, 18 p.c of its workforce, as a part of a restructuring plan. 

Justin Sullivan | Getty Photographs

Luxurious electrical automobile maker Lucid Group on Monday reported widening first-quarter losses, however stated that it nonetheless has sufficient money to proceed operations into subsequent yr.

Shares have been down over 8% in after-hours buying and selling following the information.

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“We’re on observe to provide over 10,000 autos in 2023, with company-wide initiatives ongoing that may allow Lucid to pivot to increased volumes as market circumstances permit,” CEO Peter Rawlinson stated on Monday. Lucid guided to 2023 manufacturing of between 10,000 and 14,000 autos in February.

Listed here are the important thing numbers from Lucid’s first-quarter earnings report, together with Wall Road’s consensus estimates as reported by Refinitiv:

  • Loss per share: 43 cents
  • Income: $149.4 million, versus income of $209.9 million anticipated.

Analysts polled by Refinitiv anticipated a per share lack of 41 cents, however it wasn’t instantly clear whether or not reported outcomes have been akin to these estimates.

Lucid’s first-quarter web loss was $779.5 million, a lot wider than the online lack of $81.3 million it reported within the first quarter of 2022, when it was nonetheless ramping up manufacturing of the Air. Income, nonetheless, jumped yr over yr to $149.4 million, from $57.7 million throughout the identical quarter final yr.

Lucid ended the primary quarter with about $3.4 billion in money and about $700 million in obtainable credit score strains. CFO Sherry Home stated that money needs to be enough to fund the corporate at the least till the second quarter of 2024.

Lucid had about $4.4 billion in money and a further $500 million in credit score obtainable as of the top of 2022.

Lucid has lately been transferring to preserve money. It stated in March that it could lower about 18% of its workforce, roughly 1,300 staff, in a bid to decrease spending.

The corporate remains to be batting down demand issues.

The corporate’s anticipated 2023 manufacturing of “over 10,000” Air sedans is nicely beneath the “greater than 28,000” reservations it recorded as of its fourth-quarter earnings report in February. And, in April, Lucid stated it produced 2,314 Airs within the first quarter whereas delivering simply 1,406 to clients in the course of the interval, a spot the corporate blamed on a “gradual January” and adjustments to the U.S. authorities’s EV tax credit.

In one other signal that demand for the Air could also be weak, Lucid declined to supply an up to date reservation quantity on Monday.

Lucid stated on Apr. 25 that its subsequent mannequin, a big electrical SUV known as Gravity, is on observe to start manufacturing in 2024. It plans to disclose the Gravity later this yr.

This story is creating. Please verify again for updates.

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