Lucid (NASDAQ:LCID) stock is taking a tumble after the electric vehicle (EV) company reported its first-quarter earnings. During the quarter, production tallied in at 1,728 vehicles while deliveries were 1,967 vehicles. That compares to the production and delivery of 2,391 and 1,734 vehicles during Q4 as well as 8,428 and 6,001 vehicles during 2023. Lucid has noted that it is still on track to produce 9,000 vehicles this year. However, analysts polled by Visible Alpha were expecting an average of 12,677 vehicles.
“I believe there are two factors that set Lucid apart — our superior, in-house technology and the partnership with the PIF,” said CEO and Chief Technology Officer Peter Rawlinson. “Our sales momentum is building, our focus upon cost remains relentless, and we believe Gravity is on track to become the best SUV in the world.”
Meanwhile, Q1 revenue was $172.7 million, up by 15.6% year-over-year (YOY) and beating the analyst estimate for $156.99 million handedly. Net loss was $684.76 million, improving from a loss of $779.52 million a year ago.
LCID Stock: Lucid Forecasts $1.5 Billion of Capital Expenditures in 2024
It isn’t only Lucid’s lack of material production growth that’s hurting the company. Its capital expenditures (capex), forecast to be $1.5 billion, is expected to increase roughly 65% from 2023. Capex are expenses that include the purchase and maintenance of plant, property and equipment.
The high capex is likely due to the company’s upcoming Gravity SUV, which is expected to be released later this year. Lucid also expects to release a more affordable $50,000 midsize SUV in 2026 that will compete with Tesla’s (NASDAQ:TSLA) Model Y.
At the same time, Lucid’s cash balance has risen. It had cash and cash equivalents of $2.17 billion as of March 31 compared to $1.37 billion in Q4. The increase is primarily attributed to the company raising $1 billion from Saudi Public Investment Fund (PIF) affiliate Ayar Third Investment Company. Still, the money raised via newly created shares of convertible preferred stock will result (or already has resulted) in dilution for LCID stock shareholders.
With the support of PIF and Ayar, Lucid still has runway left. The support of these two well-capitalized entities will continue to be crucial moving forward.
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.
