Lucid, a company that makes electric vehicles (EVs), had some good news and some not-so-good news in its first-quarter report. They made more money than expected, bringing in $172.7 million in revenue, which is higher than last year. But they also had a bigger loss than expected, with each share losing $0.30 instead of the estimated $0.25. This loss was also reflected in their adjusted EBITDA, a measure of profitability, which was $598.4 million, higher than what analysts predicted.
The CEO of Lucid, Peter Rawlinson, remains optimistic despite the mixed results. He mentioned that their sales are increasing, they’re focused on cutting costs, and they’re confident that their Gravity SUV will be a top-notch product when it launches in late 2024. They also have plans for another vehicle to launch in late 2026.
In the first quarter, Lucid produced 1,728 vehicles and delivered 1,967. Although this is fewer than the previous quarter, it’s still good news for investors. They aim to produce 9,000 vehicles in 2024. However, the price cuts they made earlier likely helped sales but hurt their profit margins. Also, they had to spend a lot of money on producing the Gravity SUV, with capital expenses totaling $198.2 million in the quarter.
Despite these challenges, Lucid seems to have enough money to keep going for a while. They have $4.62 billion in cash, and with a recent investment agreement with their majority shareholder, they should be okay until at least the second quarter of 2025. Rawlinson believes that Lucid’s advanced technology and its partnership with the Public Investment Fund (PIF) of Saudi Arabia set them apart from other companies.
Lucid’s stock hasn’t been doing great this year, dropping by over 32% since the beginning of the year. However, with their plans for new vehicles and their focus on innovation, they hope to turn things around in the future.
