A brand new Lucid electric car is parked in front of the Lucid Studio showroom on May 24, 2024 in San Francisco.
Justin Sullivan | Getty Images
lucid group It slightly beat Wall Street’s third-quarter expectations as the electric vehicle maker cut costs ahead of plans to start producing new SUVs for consumers by the end of this year.
Here’s how the company performed for the quarter compared to average estimates compiled by LSEG:
- Loss per share: Adjusted 28 cents vs. Expected loss of 30 cents
- Revenue: $200 million vs. $198 million forecast.
Lucid stock rose more than 8% in after-hours trading Thursday. The company’s stock closed regular trading at $2.22 per share, up 4.2%.
The company’s net loss widened to $992.5 million in the third quarter. This compares to a loss of $630.9 million in the year-ago period.
Lucid CEO Peter Rawlinson described the quarter as a “milestone” for the company, citing record deliveries of 2,781 units and cost-cutting measures. He also noted that the company achieved its financial and production goals.
In the third quarter, the automaker’s research and development expenses were $324.4 million and selling, general and administrative expenses were $233.6 million, an increase of 40.1% and 23.1%, respectively, from the same period last year. Other items such as cost of revenue and restructuring decreased significantly compared to the same period last year.
The company reaffirmed its plans to produce around 9,000 vehicles this year, which would represent a 6.8% increase compared to 8,428 vehicles in 2023.
Lucid said it had total liquidity of $5.16 billion through the end of the quarter. That doesn’t include last month’s $1.75 billion stock offering and capital increase that surprised many investors.
Lucid, Rivian and Tesla stocks in 2024.
Lucid’s stock price has been weighed down this year by widening losses, weaker-than-expected sales and heavy cash burn. The company’s stock price has fallen about 45% this year, including an 18% drop after a recent capital raise (its worst single-day loss since December 2021).
Rawlinson previously told CNBC that the public offering of approximately 262.5 million shares of the company’s common stock is a timely and strategic move to ensure the electric vehicle company has sufficient capital for its continued operations and growth plans. He said it was a good decision.
The company reiterated Thursday that its current funding secures capital through 2026 ahead of launching a new midsize platform later this year.
Lucid is currently in a very capital-intensive investment period as it expands its only U.S. factory in Arizona. Builds second factory in Saudi Arabia. The company is preparing to launch its second product, the SUV “Gravity.” Developing the next generation powertrain. and build retail and service networks.
The company said in its second-quarter earnings conference that capital expenditures this year are expected to be $1.3 billion, down from the previous forecast of $1.5 billion due to cost-cutting efforts.
Gagan Dhingra, Lucid’s interim chief financial officer and principal accounting officer, said cost reductions were being made across the automaker, adding: “We are not cutting corners anywhere. “I’m doing it,” he said.
Lucid reported third-quarter results Thursday afternoon after beginning to take orders for its next SUV, the Gravity, which is expected to begin consumer production by the end of this year.
