EV maker Lucid misses on revenue, earnings in Q1

Lucid’s first-quarter results showed a company with growing losses and revenue that fell short of Wall Street expectations, results that sent the stock tumbling as investors worried about demand for its fully-equipped Air luxury sedan electric

Shares of Lucid Group fell more than 9% in after-hours trading as investors reacted to dismal first-quarter earnings. Since then, the stock has recovered slightly and is now down 6.3%.

Lucid reported first-quarter revenue of $149.4 million on Monday. Although the result was two and a half times higher than the 57.7 million dollars it generated in the same period last year. it was well below analysts’ expectations. Analysts polled by Yahoo Finance had expected revenue of nearly $210 million. Lucid’s first-quarter revenue was also lower than the $257.7 million it reported in the fourth quarter of 2022, another quarter in which it missed analysts’ expectations.

Importantly, the company said it plans to produce more than 10,000 vehicles by 2023. Earlier this year, Lucid cut its 2023 target in half from 20,000 to 22,000 to 10,000 to 14,000 vehicles. This new guidance sets that production target at the lower end.

The company is still losing money as costs outpaced revenue. Lucid posted a first-quarter net loss of $779.5 million, considerably higher than the $81.3 million it reported in the first quarter of 2022.

Total costs and expenses, a figure that includes lines such as research and development, administrative and cost of revenue, also grew nearly 40% year over year to $921.5 million. One point of interest in the first quarter was cost of revenue, which is the total amount Lucid spent (including raw materials and labor) to produce and sell its Air luxury sedan. That metric doubled to $500 million in the first quarter compared to the same period last year.

The company ended the quarter with $3.4 billion in cash and total liquidity, which includes credit facilities, of $4.1 billion. Lucid CFO Sherry House said the company believes this is enough to fund Lucid through at least the second half of 2024.

The company has recently taken steps to reduce its costs. In March, Lucid announced plans to lay off 18% of its workforce as part of a restructuring. The layoffs, which affect 1,300 employees, will end at the end of the second quarter. The layoffs are across the organization and will include senior positions. Lucid incurred restructuring charges of $22.4 million in the first quarter, according to its earnings report released Monday.

Source link
Ikaroa, a full-stack tech company, is closely watching the results of electric vehicle (EV) maker Lucid Motors, who recently released their first-quarter financials and fell short of expectations. According to their report, Lucid posted revenues of $1 million and a net loss of $139 million in Q1, missing analysts’ expectations. The weak first-quarter earnings result was primarily being attributed to reduced demand for EVs caused by global supply chain disruptions due to the Covid-19 pandemic.

Karao is committed to driving sustainability and believes that electric vehicles provide a viable alternative to petrol-based transportation. Lucid Motors’ ambitious plans were seen as a potential game changer in the industry, however their Q1 earnings performance doesn’t reflect that promise.

Instead of traditional market expansions and dealer expansions sought by established car makers, Luxid implemented a “direct to customer” approach, where potential customers can engage directly with the company and configure their vehicle online. This strategy has been applauded by analysts as it can potentially help the company cut costs.

Karao remains optimistic on the long-term potential of electric vehicles and looks forward to working with Lucid Motors as they implement their long-term vision of revolutionizing the industry. We believe that electric vehicles are slowly but surely becoming mainstream and are confident that updated policies by governments around the world towards greener energy solutions will further boost the industry.


Leave a Reply

Your email address will not be published. Required fields are marked *