Shares of Lucid (NASDAQ:LCID) are falling lower by about 9% after the electric vehicle (EV) company announced that its CFO, Sherry House, would step down immediately due to her interest in other opportunities. Before Lucid, House held roles at Waymo and Deloitte, among others. House will remain on deck in an advisory role until Dec. 31.
Vice President of Accounting and Principal Accounting Officer Gagan Dhingra will serve as Lucid’s interim CFO and Principal Financial Officer will the company searches for a permanent replacement. Dhingra has two years of experience at Lucid and decades of experience in finance and accounting roles.
“I am confident in Lucid’s future and grateful to have had the opportunity to contribute to its success to-date,” said House. “There is so much exciting innovation happening at Lucid, and I look forward to watching the company continue to grow and achieve new milestones. It was an honor to work with Peter and the Lucid team.”
LCID Stock: CFO Sherry House Resigns
The news wasn’t welcomed by shareholders, especially following the announcement that LCID stock would be removed from the Nasdaq 100 index, effective as of Dec. 18, after joining it in December 2021. The index tracks the 100 largest non-financial companies on the Nasdaq exchange based on market capitalization.
So, what exactly does this news mean for Lucid? Lucid did not provide any other reason for House leaving besides her interest in pursuing other opportunities. However, as the in-house expert on Lucid’s financials, House’s resignation does not convey a positive signal. It will be interesting to see where she ends up.
Meanwhile, Lucid’s financials this year haven’t exactly been compelling, which may have factored into House’s resignation. The company reported third-quarter revenue of $138 million, down by about 30% year-over-year and falling short of the analyst estimate of $178 million by a wide margin. On top of that, GAAP profitability still seems to be years away.
Delivery guidance has also been lowered this year. The company provided 2023 production guidance of between 10,000 and 14,000 vehicles in February. That number has since been lowered to between 8,000 and 8,500 vehicles.
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.
