Lucid Posts Q2 Losses, Holds Firm on 10,000 Vehicle Target
Lucid Group has announced its second quarter financial results for 2023, highlighting an increasing net loss alongside promising growth indicators. Despite the escalating losses, Lucid maintains its annual production guidance of more than 10,000 vehicles for 2023.
The company announced a revenue of $150.9 million, attributed to the delivery of 1,404 vehicles. However, the company’s losses grew significantly during the same period. The net loss for the quarter ending June 30, 2023, was $764.2 million, a substantial increase from the $220.4 million loss reported in the same quarter in 2022.
Notwithstanding these losses, the Newark, California-based firm has managed to bolster its balance sheet to $6.25 billion in total liquidity as of June 30, 2023. This considerable sum is expected to finance the company’s operations into 2025.
In addition to the financials, Lucid reiterated its partnership with luxury automaker Aston Martin. Lucid is to supply powertrain and battery system technology to Aston Martin, a deal estimated to be worth over $450 million. This partnership serves to underline Lucid’s advanced technological standing in the electric vehicle industry.
Lucid’s CEO and CTO, Peter Rawlinson, admitted that while the company is progressing towards its production target of 10,000 vehicles in 2023, there is still work needed to expand its customer base. Rawlinson reiterated the importance of the Aston Martin partnership and announced the planned production start for new models, Lucid Air Sapphire and Lucid Air Pure Rear Wheel Drive, in mid-September.
Further, Lucid’s CFO, Sherry House, emphasized the successful capital increase of $3.0 billion during Q2, which included $1.8 billion from the Public Investment Fund (PIF). House is optimistic that the current liquidity will support Lucid through the start of production for the Lucid Gravity, a new SUV model, and into 2025.
Lucid really needs to ramp up production. It will be interesting to see if it can hit its 10,000 vehicle target for 2023.