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LCID Stock: Lucid Lost $550,000 for Every Car It Delivered in Q1


  • Lucid (LCID) delivered 1,406 vehicles and reported a net loss of $779.52 million during the first quarter.
  • That means the company lost about $554,000 for each delivered vehicle.
  • LCID stock is up more than 10% year-to-date (YTD).
A Lucid (LCID) Air displayed in its own vitrine in Madison Square Park in New York. Lucid Motors started trading on the NASDAQ exchange via a SPAC merger.
Source: rblfmr / Shutterstock.com

Lucid (NASDAQ:LCID) stock opened lower by about 10% today after the electric vehicle (EV) company reported first-quarter earnings. During Q1, the company manufactured 2,314 vehicles and delivered 1,406 of them. The delivered vehicles contributed to a revenue of $149.4 million, which was up by approximately 159% year-over-year (YOY), although analysts polled by Refinitiv were expecting $209.9 million.

Meanwhile, net loss tallied in at a staggering $779.52 million, equivalent to an EPS loss of 43 cents. That means that for every vehicle Lucid delivered during Q1, the company lost about $554,000. That doesn’t exactly ring a bell of confidence or profitability.

CEO Peter Rawlinson hopes that the release of the Gravity SUV will help turn things around. Rawlinson added in the report:

“We will unveil our Gravity SUV later this year ahead of its launch in 2024 and we cannot wait for everyone to experience it. The Lucid Air redefined the luxury sedan category and we believe the continuing advancements of our in-house technology position our Gravity SUV to do the same in the SUV category – game-changing range, driving experience, charging speed, voluminous interior space, and an unrivaled combination of luxury and performance.”

LCID Stock: Lucid Lost $550,000 for Every Car It Delivered in Q1

Full-year guidance was also a disappointing metric. During Q4, Lucid guided for 2023 production of between 10,000 and 14,000 vehicles, while analysts were expecting between 20,000 and 22,000 vehicles. Now, the guidance has been changed to “more than 10,000 vehicles.” In 2022, Lucid produced a total of 7,180 vehicles and delivered 4,369 of them.

On the bright side, Chief Financial Officer Sherry House noted that the company ended the quarter with just over $3.4 billion in cash, cash equivalents and investments, while total liquidity was about $4.1 billion. House believes that Lucid’s liquidity position will be able to sustain business operations until at least Q2 2024.

As of Feb. 21, Lucid had 28,000 reservations, which was down from “over 34,000 reservations” as of Nov. 7. Lucid did not provide an updated reservations figure in its recent earnings.

With production below estimates and a lack of clarity on reservations, investors could rationalize that demand is taking a hit. Lucid stated that seasonality is a factor, attributing its Q1 numbers to a slow January and changes in federal EV tax credits. Price cuts at Tesla (NASDAQ:TSLA) may have also stolen market share from the emerging EV company.

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.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/lcid-stock-lucid-lost-550000-for-every-car-it-delivered-in-q1/.

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