Electric vehicle maker Lucid misses out on first-quarter revenue and earnings

Lucid’s first-quarter outcomes confirmed an organization with increasing losses and income that failed to fulfill Wall Avenue’s expectations, inflicting shares to drop as buyers fret over demand for its all-electric luxurious Air sedan.

Shares of Lucid Group fell greater than 9% in after-hours buying and selling as buyers reacted to dismal first-quarter earnings. Shares have rebounded a bit since then and are actually down 6.3%.

Lucid reported Monday first quarter revenue $149.4 million The outcome was two and a half instances increased than $57.7 million in the identical interval final yr. It was effectively under analysts’ expectations. Analysts polled by Yahoo finance had been anticipating income of round $210 million. Lucid’s first-quarter income was additionally decrease than the $257.7 million it reported within the fourth quarter of 2022 — one other quarter that missed analysts’ expectations.

Extra importantly, the corporate stated it plans to supply greater than 10,000 automobiles in 2023. Earlier this yr, Lucid halved its 2023 goal from 20,000 to 22,000, and from 10,000 to 14,000. This new guideline units the manufacturing goal on the decrease finish.

The corporate remains to be dropping cash as prices outweigh income. Lucid reported a first-quarter internet lack of $779.5 million, considerably increased than the $81.3 million reported within the first quarter of 2022.

Complete prices and bills, a determine that features line objects resembling analysis and growth, administration and income prices, additionally elevated by practically 40% year-over-year to $921.5 million. One of many key factors within the first quarter was the price of income (together with uncooked supplies and labor), which is the whole quantity Lucid spent to fabricate and promote the posh Air sedan. This metric doubled within the first quarter in comparison with the identical interval final yr, reaching $500 million.

The corporate closed the quarter with $3.4 billion in money and $4.1 billion in complete liquidity, together with traces of credit score. Lucid CFO Sherry Home stated the corporate believes this is sufficient to fund Lucid by no less than the second half of 2024.

The corporate has made strikes to cut back its prices not too long ago. In March, Lucid introduced plans to put off 18% of its workforce as a part of restructuring. The layoffs affecting 1,300 workers will probably be accomplished by the tip of the second quarter. Layoffs are organization-wide and can embrace govt positions. Lucid incurred $22.4 million in restructuring prices within the first quarter, in response to its earnings report launched Monday.