Lucid Maintains Manufacturing Steering Regardless of Underwhelming Q2 Outcomes

Lucid Group posted its Q2 2023 monetary outcomes on August 7, saying that it maintains its manufacturing purpose for the 12 months and has sufficient money to launch the Gravity SUV subsequent 12 months.

Lucid posted Q2 income of $150.9 million, 55 p.c greater than in Q2 2022, pushed by buyer deliveries of 1,404 autos within the quarter, largely the identical as within the first quarter. Manufacturing fell 6 p.c from the primary quarter at 2,173 vehicles. Nonetheless, the EV startup mentioned it stays on observe to construct greater than 10,000 autos this 12 months; within the first half of the 12 months the corporate constructed 4,487 autos and delivered solely 2,810.

The second-quarter web loss widened to $764.2 million from $555.3 million throughout the identical quarter final 12 months. Each the Q2 income and web loss missed market estimates.

The corporate mentioned it had $6.25 billion in whole liquidity as of June 30, 2023, which is anticipated to take Lucid by way of the beginning of manufacturing for the Lucid Gravity in late 2024, and into 2025. The sturdy liquidity is as a result of $3 billion inventory providing in June led by its majority proprietor, Saudi Arabia’s Public Funding Fund (PIF).

Talking of Saudi Arabia, Lucid mentioned it initiated materials shipments of autos to the nation and that it finalized the acquisition settlement with the Authorities of Saudi Arabia. The deal for 50,000 autos with the choice for an extra 50,000 was first introduced in April 2022.

The second half of the 12 months guarantees to be eventful for Lucid in terms of product launches, as famous by CEO Peter Rawlinson.

“We look ahead to thrilling new merchandise within the second half of this 12 months, together with the deliberate begin of manufacturing of the Lucid Air Sapphire and the Lucid Air Pure Rear Wheel Drive, plus the extremely anticipated unveiling of our new SUV, Lucid Gravity, forthcoming in November.”

He added that Lucid achieved a number of main milestones in Q2 2023, together with signing agreements to enter right into a long-term strategic partnership with Aston Martin – the primary such partnership for Lucid Group’s know-how arm. The contracts are price in extra of $450 million.

Lastly, Lucid talked about the latest value cuts for the Air Pure, Air Touring, and Air Grand Touring, that are anticipated to extend gross sales. The corporate additionally expects a gross sales increase from the launch of latest Air trims – Air Pure RWD and Air Sapphire – in addition to the cargo of first partially assembled automobile kits to its Saudi Arabia plant.

On the earnings name, Rawlinson mentioned Lucid is keen to regulate costs additional to stimulate gross sales, marking a change of technique in comparison with the beginning of the 12 months.

“We’re at all times keen to regulate to market situations. I believe that is crucial to retain that flexibility. The secret is to get product out into the wild in clients’ arms. That is the very best advertising instrument we have,” Rawlinson mentioned. “We’re restricted by our capability to promote the vehicles proper now, and that’s my key focus,” he advised Reuters.