Lucid earnings: EV maker reports Q2 revenue, earnings miss; reiterates Gravity SUV on track
Luxury electric vehicle maker Lucid (LCID) reported second quarter financial results the missed the mark, though the automaker reiterated it would hit its annual production target, and confirmed the upcoming Gravity SUV would be revealed later this year. Lucid stock was trading higher in after-hours trading.
For the quarter, Lucid reported top-line revenue of $150.9 million, below consensus estimates of $176.63 million. Lucid's Q2 adjusted EPS loss of $0.40 also missed Wall Street expectations of loss of $0.34. More concerning, Lucid also reported an adjusted EBITDA loss of $710.3 million, a much deeper loss than the $596.14 million expected, and much more than the $414.1 million it lost a year ago.
Lucid confirmed that its Gravity SUV would be unveiled in November of this year, with production slated to begin in late 2024. The company also said its liquidity position grew to $6.25 billion in the quarter, stemming from a $3 billion capital raise. Lucid says it has enough liquidity now to fund the company into 2025.
From a deliveries standpoint, Lucid said it delivered 1,404 vehicles in Q2, missing Wall Street’s estimate of 1,873, and produced 2,173 vehicles in the quarter. In Q1 of this year, Lucid delivered 1,406 cars and produced 2,314, meaning the company didn't match the prior period’s output. Lucid said it was on track to produce 10,000 EVs in 2023.
"We're on track toward achieving our 2023 production target of more than 10,000 vehicles, but we recognize we still have work to do to grow our customer base," Lucid CEO Peter Rawlinson said in a statement.
Earlier on Monday Lucid cut the manufacturer's suggested retail price (MSRP) of its base model Air Pure sedan by $5,000, bringing the starting price to $82,400 from $87,400. Lucid also cut prices of the higher trim Air Touring and Grand Touring each by $12,000, to $95,000 and $125,600, respectively.
Lucid said the special pricing would remain "while supplies last" and is available on cars for immediate delivery. Lucid also unveiled special lease and financing offers that are valid through the end of August.
Many EV makers have been cutting prices and availing themselves of the federal EV tax credit of $7,500 when applicable as a way to gin up demand and boost sales. Lucid, however, builds cars that are priced significantly higher than the $55,000 price cap for the EV tax credit; however, the company is able to use the commercial lease exemption to reduce the price of its cars by the full $7,500 if customers opt to lease instead. Lucid lease customers also do not need to meet the federal tax credit’s strict income requirements.
Lucid's price cuts here could be a sign of slowing demand, as evidenced by the Q2 deliveries miss.
Also in the second quarter, Lucid announced a a "long-term strategic technology partnership" with British luxury automaker Aston Martin (ARGGY), which will use Lucid supply components and systems to power future Aston Martin EVs. Lucid shares jumped on the news of the licensing deal, however shares are currently trading near six-week lows in midday trading.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
