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Lucid Motors Inventory Sinks on Q1 2023 Earnings Miss & Steering Lower


Lucid Motors (NYSE: LCID) inventory is buying and selling sharply decrease in US premarket value motion as we speak after the corporate missed each the topline and bottomline estimates for the primary quarter of 2023 and in addition toned down its 2023 supply steering.

Lucid Motors reported revenues of $149.4 million within the quarter which was under the $209.9 million that analysts have been anticipating.

The corporate produced 2,314 automobiles within the quarter and delivered 1,406 of those. The metrics have been under the fourth quarter the place it had produced 3,493 autos and delivered 1,932. Lucid Motors’ Q1 deliveries fell nicely wanting the two,000 that analysts have been anticipating.

Lucid Motors misses Q1 2023 earnings estimates

LCID reported a per-share lack of 43 cents – which was a lot wider than the per-share loss in Q1 2022 – and in addition increased than what the markets have been anticipating.

In his ready remarks, Lucid Motors CEO Peter Rawlinson mentioned, “We’re on monitor to supply over 10,000 autos in 2023, with company-wide initiatives ongoing that can allow Lucid to pivot to increased volumes as market situations permit.”

Notably, in the course of the earlier quarter, the corporate offered a 2023 supply steering of between 10,000-14,000 autos. It has now toned down the steering and expects it to be close to the decrease finish of the steering.

By the way, when it went public in 2021 by way of a reverse merger with Churchill Capital IV, Lucid guided for 2023 deliveries of 49,000. Nevertheless, like fellow EV startups, it is usually scuffling with assembly these forecasts that regarded lofty on the onset solely.

LCID lowers 2023 supply steering

In response to a retail investor’s query on the manufacturing steering, Rawlinson mentioned, “I acknowledge and emphasize with the frustration, and I take this very critically. Below-promising and over-delivering isn’t about setting low requirements or being complacent. It’s about being real looking and proactive.”

He pointed to the provision chain points, macroeconomic slowdown, increased rates of interest, and modifications to the federal EV tax credit score for falling behind on the steering.

Rawlinson added, “Once we information, we accomplish that with absolute honesty and integrity to the perfect that we’re in a position to estimate. And I actually emphasize with our shareholders who’re right here with us by way of the long term.”

Lucid to ship autos to Saudi Arabia later this yr

Saudi Arabia’s PIF (public funding fund) is Lucid Motors’ greatest stockholder and has positioned an order for upto 100,000 automobiles with the corporate.

Responding to an analyst query on the supply timeline for these automobiles, Rawlinson mentioned, “We’re in energetic dialogues. We’re within the technique of constructing out the specs for the primary autos that they wish to obtain later this yr.”

The corporate can also be constructing its second manufacturing unit within the kingdom and mentioned that the ability to construct 5,000 automobiles is “practically full and tools set up will start subsequent month.”

Lucid Motors inventory soared earlier this yr on rumors that Saudi Arabia is contemplating taking the corporate non-public. Throughout the earlier earnings name, the corporate refused to touch upon the rumors.

This time round, Lucid CEO Sherry Home mentioned, “The PIF has been a dedicated investor and a strategic companion for a few years, and we’re very grateful for his or her partnership and assist.”

Lucid has sufficient money to fund operations till Q2 2024

Lucid Motors ended the primary quarter with whole money of $3.4 billion and whole liquidity of $4.1 billion – which it mentioned would fund its loss-making operations till not less than Q2 2024.

Final yr, the corporate raised $1.5 billion by way of a inventory sale the place PIF additionally invested over $900 million.

Startup EV corporations together with Lucid Motors are burning quite a lot of money and want to boost money at common intervals. Earlier this yr, Rivian Motors additionally issued a convertible bond to spice up its stability sheet.

Gravity SUV set for 2024 launch

Lucid Motors mentioned that it might start the manufacturing of its Gravity SUV late subsequent yr. Rawlinson mentioned, “We’ll unveil our Gravity SUV later this yr forward of its launch in 2024 and we can’t wait for everybody to expertise it.”

It presently presents the Air luxurious sedan. Throughout the earnings name, Rawlinson harassed a number of occasions that whereas many assume that the Air is a $200,000 automobile, the beginning value of solely about $87,000.

He mentioned, “It’s most likely conceivable that folks consider it as a $300,000 automobile greenback depend as a result of it’s so superb, however really, it’s far more attainable, and we have to unfold that phrase as nicely.”

Throughout the earnings name, Rawlinson mentioned that a number of OEMs are eager about its {hardware} and software program expertise. Nevertheless, regardless of probing questions from analysts, he didn’t disclose extra particulars.

Lucid Motors is engaged on model consciousness and price cuts

Throughout the earlier earnings name, Rawlinson rued the low model consciousness for Lucid Motors and mentioned rising model consciousness and chopping prices have been his priorities for 2023.

Throughout the Q1 2023 earnings name, he mentioned that “we proceed to make strides in rising our model consciousness.”

Rawlinson mentioned that “on the 2023 New York Worldwide Auto Present, Lucid Air was topped the 2023 World luxurious automobile. Lucid Air was additionally named to be the U.S. Information & World Report 2023 greatest hybrid and electrical automobiles lists for greatest luxurious electrical automobile. Now these awards reinforce our perception that Lucid not simply one of the best EV on the planet, however one of the best automobile obtainable on the planet as we speak.”

The corporate has additionally lowered its price base and introduced layoffs.

In the meantime, Lucid Motors in addition to Rivian have stopped offering reservation numbers in an indication that the demand might be not as sturdy. By the way, Lucid reported a fall in reservation numbers for 2 quarters earlier than it introduced that it gained’t present the metric going ahead.

LCID inventory is down over 8% in US premarket value motion as we speak as markets give a thumbs all the way down to its earnings miss and steering reduce.



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