On May 24, 2024, the new Lucid electric vehicle was parked in front of the Lucid Studio showroom in San Francisco.
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sobriety group It was slightly ahead of Wall Street’s third-quarter forecasts as the electric car maker cut costs ahead of plans to start production of its new SUV late this year.
Here’s how the company’s performance for the quarter compared to the average forecast compiled by the London Stock Exchange Group (LSEG):
- Loss per share: Adjusted 28 cents Expected loss of 30 cents
- income: $200 million vs. $198 million expected
Lucid’s shares rose more than 8% in after-hours trading Thursday. The stock closed at $2.22 per share in regular trading, up 4.2%.
The company’s third-quarter net loss widened to $992.5 million. This compares with a loss of $630.9 million in the same period last year.
Lucid Chief Executive Peter Rawlinson described the quarter as a “milestone” for the company, citing a record 2,781 unit deliveries and cost-cutting measures. He also noted that the company met financial and production targets.
In the third quarter, the automaker’s research and development costs were US$324.4 million, and selling, general and administrative costs were US$233.6 million, an increase of 40.1% and 23.1% respectively compared with the same period last year. Other areas, such as revenue and restructuring costs, were down significantly from the year-earlier period.
The company reiterated its plan to produce about 9,000 vehicles this year, a 6.8% increase from 8,428 vehicles in 2023.
Lucid said it had total liquidity of $5.16 billion at the end of the quarter. That doesn’t include a $1.75 billion stock offering and financing last month that surprised many investors.
Lucid, Rivian, and Tesla Stocks in 2024.
Lucid’s shares have been under pressure this year as losses widen, slower-than-expected sales and a massive cash burn. The company’s shares are down about 45% this year, including an 18% drop after the latest funding round, their worst one-day drop since December 2021.
Rawlinson previously told CNBC that the public offering of nearly 262.5 million shares of common stock was a timely strategic business decision to ensure that the electric vehicle company has sufficient capital to support its continued operations and growth plans.
The company reiterated on Thursday that its existing funding now secures its capital until 2026 before launching a new mid-sized platform later that year.
Lucid is currently in the midst of a highly capital-intensive investment period as it expands its only U.S. factory in Arizona; builds a second factory in Saudi Arabia; and prepares to launch its second product, an SUV called Gravity. develop next-generation powertrains; and build its retail and service network.
The company said on its second-quarter earnings call that it expects capital expenditures of $1.3 billion this year, down from its previous guidance of $1.5 billion, due to cost-cutting measures.
Gagan Dhingra, Lucid’s interim financial chief and chief accounting officer, said costs are being cut across the automaker: “We’re not leaving any corners unturned. It’s across the board.”
Lucid reported third-quarter results Thursday afternoon after taking orders for its upcoming Gravity SUV, which is expected to begin consumer production by the end of the year.
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