Lucid (NASDAQ:LCID) stock is catching a bid after the electric vehicle (EV) company reported its second-quarter earnings. Lucid also announced that Ayar Third Investment Company, an affiliate of Saudi Arabia’s Public Investment Fund (PIF), has agreed to an investment of $1.5 billion. Ayar is already the largest shareholder of LCID stock.
The investment includes the purchase of $750 million of convertible preferred stock through a private placement and another $750 million through an unsecured delayed draw term loan facility.
For the quarter ended June 30, Lucid produced a total of 2,110 vehicles compared to 2,173 vehicles a year ago. Deliveries were a brighter spot, as they grew by 70.5% to a record-high 2,394 vehicles.
“I’m very encouraged by our sales and market share momentum we’re experiencing, the benefits we’re realizing from our cost optimization programs, and the excitement that’s been building into the Lucid Gravity launch, setting a strong foundation for the rest of the year,” said CEO Peter Rawlinson.
LCID Stock: Lucid Reports Earnings, Announces $1.5 Billion Investment from PIF Affiliate
In addition, Lucid’s revenue grew by about 33% to $200.6 million compared to $150.9 million a year ago. Its revenue also beat the analyst estimate for $192.1 million.
The EV company is still in its early stages, meaning that it still has quite a bit of road to cover before it can achieve profitability. During the quarter, Lucid reported a net loss of $643.39 million compared to a net loss of $764.23 million a year ago. Its diluted net loss per share attributable to common stockholders was 34 cents compared to 40 cents year-over-year (YOY).
Wall Street doesn’t expect the company to post its first profitable year until 2030, when it is forecast to report a GAAP EPS of 5 cents.
Lucid ended the quarter with $4.28 billion in total liquidity. As a result of the Ayar investment, Lucid expects to be able to fund its operations until at least the fourth quarter of 2025.
Ayar’s investment will likely contribute toward the release of the Gravity SUV, which is slated to begin production later this year.
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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
