Electric vehicle manufacturer Lucid Motors (NASDAQ:LCID) saw shares sink 2% in after-market trading on Tuesday, Nov. 7 after announcing a significant earnings miss. Revenue came in at $137.8 million, 25% below Wall Street expectations of $183.8 million, while a loss per share of 28 cents beat expectations for a loss of 35 cents. Comparing year over year, revenue figures represent a decline of 29.5%.
Lucid also lowered its production outlook for 2023 to 8,000–8,500 vehicles, down from its prior guidance of over 10,000 units. To meet the original target, Q4 production would have had to reach 4,000 vehicles.
Louis Navellier of InvestorPlace has advised investors to avoid LCID stock due to its high cash burn rate. This financial performance has earned Lucid a D rating on Navellier’s Portfolio Grader. Furthermore, the KraneShares Electric Vehicles and Future Mobility Index ETF (NYSEARCA:KARS) observed a 10% decrease in value this year due to concerns over competition from China and slower EV adoption in the U.S.
Not all news, however, was bad for Lucid. The company announced it had begun on-time production of its Pure RWD and Sapphire models and moved general assembly to its Phase 2 factory in Arizona. The firm will also open its first manufacturing plant in Saudi Arabia. The company’s first-ever chief operating officer, Marc Winterhoff, will oversee these operations. The much-anticipated Lucid Gravity, an electric SUV, is set for unveiling at the LA Auto Show on Nov. 16.
Lucid’s management also remains optimistic about its future, citing progress in its cost control program and liquidity of approximately $5.45 billion. Moving forward, the company aims to focus on improving deliveries while gearing up for the production of the Lucid Gravity in late 2024.
Thomas Yeung produced this article using data from Thomson Reuters and unique generative AI prompts. These prompts help distill real-time quarterly earnings data and combine it with InvestorPlace.com’s best-in-class analysis. Our readers get a deep dive into financial results at lightning speed. These articles have been reviewed by a human editor prior to publication. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.
