Lucid Group, the luxury electric vehicle manufacturer, slightly surpassed Wall Street’s expectations for the third quarter of 2023, reporting revenue of $200 million, just above the $198 million forecasted by analysts.
However, the company’s financial results also revealed a wider net loss, reaching $992.5 million for the quarter, compared to a loss of $630.9 million during the same period last year.
The company’s stock saw an increase of more than 8% in after-hours trading, following the release of its earnings. Shares had closed regular trading up 4.2% at $2.22 per share. Despite the positive market reaction, Lucid continues to face significant financial challenges, with ongoing losses and high operational costs.
Lucid’s adjusted loss per share came in at 28 cents, slightly better than the 30-cent loss analysts had anticipated. This result came amid the company’s ongoing cost-cutting measures, which have been implemented as Lucid prepares to ramp up production of its upcoming Gravity SUV, slated for consumer production by the end of this year.
CEO Peter Rawlinson described the third quarter as a “landmark” for the company, highlighting record deliveries of 2,781 vehicles and progress on both financial and production targets. However, costs associated with research and development, as well as selling, general, and administrative expenses, continued to rise significantly, increasing by 40.1% and 23.1%, respectively, from the previous year.
Lucid’s production in the third quarter was a slight drop from earlier in the year, manufacturing 1,805 vehicles in the period. Still, the company reaffirmed its goal of producing 9,000 vehicles by the end of 2023, marking a 6.8% increase from the previous year.
The company’s liquidity position appears strong, with $5.16 billion in total liquidity at the end of the quarter, which does not include the $1.75 billion raised through a stock offering last month. This capital raise, which surprised some investors, was viewed as a necessary step to secure the company’s finances through 2026 as it continues to invest in its US and Saudi Arabian manufacturing operations.
Lucid is currently in a capital-intensive phase, with plans to expand its US factory in Arizona, build a second plant in Saudi Arabia, and launch new products such as the Gravity SUV. While the company has made strides in reducing costs, it remains in a precarious financial position, with significant losses per vehicle, a challenge that rivals such as Rivian are also working to address.
