Lucid (NASDAQ:LCID) stock is in the spotlight after the company reported Q1 earnings and raised prices for its Lucid Air model. The luxury electric vehicle (EV) maker posted revenue of $57.7 million on top of a net loss of $81.3 million. The net loss equates to a loss of 5 cents per share. On top of that, the company ended the quarter with nearly $5.4 billion of cash on hand.
Lucid’s revenue was primarily driven by it delivering 360 EVs during Q1. In addition, Lucid disclosed that it currently has over 30,000 EV reservations, which reflect potential sales of $2.9 billion. This reservation figure does not include the up-to-100,000-vehicle order from Saudi Arabia. Saudi Arabia has agreed to buy at least 50,000 vehicles, with the option to buy 50,000 more, over the next 10 years. Deliveries for the order will begin next year.
With that in mind, let’s jump into the details of Lucid’s earnings and price raises.
LCID Stock: Lucid Raises Prices for the Air Models
Depending on the trim level, prices for the Lucid Air will increase by 10% to 12%, effective June 1. CEO Peter Rawlinson explained:
The world has changed dramatically from the time we first announced Lucid Air pricing in September 2020, but I want to reassure our existing reservation holders that we will be honoring current pricing for them as well as for any new reservations made before the end of the month.
As of June 1, new reservations in the U.S. will be priced at “$154,000 for Air Grand Touring, $107,400 for Air Touring and $87,400 for Air Pure.” Prices for the Lucid Air Grand Touring Performance model will remain constant at $179,000.
These price hikes will undeniably help Lucid combat heightened expenses from supply chain issues and EV battery components.
What’s Next for Lucid?
Last quarter, Lucid reduced its 2022 production guidance to between 12,000 and 14,000 vehicles, down from 20,000 vehicles. The company claimed that this was due to a lack of basic materials, such as glass and carpet.
This quarter saw the company maintain that guidance. Still, CFO Sherry House cautioned that “any extended disruptions could result in an impact to our production forecast.”
Meanwhile, House hinted at no debt or equity offerings until at least 2023. The CFO stated that the company’s cash balance is “is sufficient to fund the Company well into 2023.”
Lucid also confirmed that its upcoming luxury SUV, called the Gravity, is expected to begin production during the first half of 2024.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.