Lucid Misses Revenue Expectations by 25 Percent
Electric vehicle maker Lucid Motors released its first-quarter earnings yesterday, and the numbers aren't ideal. The company underperformed analyst's revenue expectations by over 25 percent, triggering a sharp drop in the stock price.
A polled sample of Wall Street analysts expected Lucid to report $209.9 million in revenue according to CNBC, but the actual figure was $149.4 million. Lucid also posted a $779.5 million net loss for the quarter, but analysts had expected a large loss going into the report. As CNBC notes, the company still has $3.4 billion and the ability to tap up to $700 million in credit. The company has enough money on-hand to last it through the second quarter of 2024, so there's no imminent need for a cash infusion.
That doesn't mean the company is out of the woods, though. The company lost far more than it took in in revenue, which means the path to profitability remains long. And despite wide-spread praise of the product, sales expectations remain moderate. Lucid expects to sell roughly 10,000 Air sedans this year. It has not provided an update on the total number of reservations it has for the sedan, but evidence suggests that demand is slackening.
The upcoming Gravity SUV may solve Lucid's problem. Slated for 2024, the electric SUV will enter a hotter and less crowded segment and benefit from the company's experience building Airs. Immediate cash issues are unlikely to derail that, as the company is majority owned by the Sovereign Wealth Fund of Saudi Arabia. Few have deeper coffers. The country is using foreign investments to both diversify its revenue streams and bolster its image abroad. Owning a flagship luxury EV brand is certainly helping with the latter goal. If Lucid wants to help with the former, though, the company will have to improve its financials.
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