Lucid Motors has reported a substantial net loss of $685 million in the first quarter of 2024, despite a slight improvement from the $780 million loss recorded in the same quarter of the previous year.
The company’s stock reacted negatively, dropping 7.5 percent to $2.82 per share in after-hours trading on Monday.
Despite the financial challenges, Lucid confirmed that it remains on track with its production guidance for 2024, aiming to manufacture 9,000 vehicles. This comes amidst an environment of high interest rates and a decline in demand for electric vehicles, which continue to pressure the company’s growth prospects.
The company saw an increase in revenue to $173 million from $149 million in the year-ago period and reported having $2.2 billion in cash and cash equivalents at the end of the first quarter, a rise from $1.4 billion at the end of 2023.
Lucid’s production figures for the quarter included 1,728 units of its Air sedan, with deliveries reaching 1,967 vehicles. This represents a 40 percent increase in sales compared to the first quarter of 2023. However, the company is still lagging behind its yearly production target, even as it offers generous sales incentives to boost demand.
Lucid CEO Peter Rawlinson, in a statement before the earnings call, emphasized efforts on cost reduction and the upcoming launch of the Gravity crossover, Lucid’s second vehicle model. “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,” Rawlinson stated.
Investor concerns remain high, with questions about Lucid’s path to profitability and potential plans for a more affordable electric vehicle surfacing ahead of the earnings call.
Lucid’s financial trajectory continues to be a concern, with a cumulative net loss of $2.8 billion reported for 2023 and a $1.3 billion loss in 2022.
Despite these challenges, Lucid has secured a significant investment of $1 billion from an affiliate of Saudi Arabia’s Public Investment Fund, the majority stockholder, signaling continued investor confidence in its long-term potential.
