Lucid Group introduced monetary outcomes for the primary quarter of 2023, and traders will probably be struggling to seek out some excellent news within the report.
The EV startup posted a first-quarter internet lack of $780 million (from $604.6 million a 12 months earlier), regardless of income of $149.4 million in the identical interval. It is a clear signal that the corporate is burning by way of money amid declining demand for its Lucid Air luxurious electrical sedan, which begins round $90,000.
Consequently, Lucid minimize its 2023 manufacturing forecast to “greater than 10,000 autos” from its earlier estimate of 10,000-14,000 autos.
One other signal of waning demand is that Lucid delivered just one,406 autos in Q1 regardless of constructing 2,314 items throughout the identical interval – and this discrepancy between manufacturing and deliveries has been going ever since Lucid manufactured its first Air EV in September 2021.
For instance, Lucid delivered 4,369 vehicles in 2022, far under the 7,180 items it produced throughout the 12 months. Again to the Q1 2023 outcomes, the automaker says it ended the quarter with roughly $4.1 billion whole liquidity, which is sufficient to fund it “not less than into the second quarter of 2024.”
“We’re on monitor to provide over 10,000 autos in 2023, with company-wide initiatives ongoing that can allow Lucid to pivot to larger volumes as market circumstances permit.”
Peter Rawlinson, Lucid’s CEO and CTO
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Rawlinson added that Lucid expects to unveil its second automobile, the Gravity SUV, later this 12 months and to start out accepting reservations, with manufacturing of the three-row SUV on schedule to start out in 2024.
The factor is the Gravity will seemingly be as least as costly because the Air sedan, and whereas SUVs are extra in style than sedans, it stays to be seen if Lucid will discover sufficient prospects for it to show the tables round from a monetary perspective.
Lucid’s CEO mentioned on the earnings name that the automaker is seeing success in elevating model consciousness because it seems to seek out extra consumers for the Air sedan.
“We’re seeing some early wins. The variety of check drives has practically doubled within the first quarter from the fourth quarter of final 12 months,” Rawlinson mentioned of the Lucid’s elevated concentrate on advertising, in response to Reuters.
Talking of promoting, the corporate introduced on the earnings name that Andrea Soriani is its new head of promoting. The manager beforehand held advertising roles at TAG Heuer and Maserati of North America.
Additionally throughout the name, Lucid CFO Sherry Home mentioned Lucid will not be making public its order backlog – regardless of doing so prior to now. The disappointing Q1 2023 numbers despatched the automaker’s inventory down practically 9 % in prolonged buying and selling.