After a disappointing Q1 finish, Lucid Group Inc. executives said they are targeting at least 10,000 vehicles produced, shying away from the previously announced range of 10,000 to 14,000 for the year. With 2,314 vehicles produced (and 1,406 delivered) thus far, the start-up will have to hit over 2,500 each quarter this year to stay on track.
The quarter had highs and lows for the EV maker. At the end of March, the company announced its restructuring plan that would entail laying off 18% of its workforce, or approximately 1,300 people, due to “evolving business needs, productivity improvements and broader economic uncertainty.” The move cost the company $22.5 million this quarter, with $2 million more to come in Q2. Financially, Lucid also took big hits, with $779.5 million in net losses, nearly ten times Q1 22’s $81.3 million. On the flip side, Revenue, while still below analyst forecasts, was up 57% compared to the prior year period at $149.4 million, and it ended the quarter with over $4 billion in liquidity.
The company also kicked off its Dream Ahead Tour in April, which allows consumers across the nation to drive the Air, continuing its journey of building so-called “brand advocates.” Despite the relatively low sales, CEO Peter Rawlinson remains optimistic about what’s to come in terms of customer growth, something he also addressed during last quarter’s results.
“And as we achieve a tipping point in brand visibility wants enough cars are on the road, we believe we will see a higher velocity of growth,” he said.
CFO Sherrie House also reiterated this point, saying that they expected Q2 deliveries to be up sequentially, Q3 would depend on Lucid’s ability to ramp up production, and that they expected Q4 would “be our largest quarter of the year.”
Rawlinson also gave updates on the Lucid Sapphire and Gravity models, which are still on track to begin production in September of this year and late 2024, respectively. The Lucid Air Sapphire, among other features, will have three motors, crack tuned suspension and a top speed exceeding 200 miles per hour. The Gravity, Lucid’s first SUV, recently began road testing and will be officially unveiled later this year.
After reporting earnings on the afternoon of May 8, Lucid stock (Ticker: LCID) fell only two cents down to $7.28 per share the following day. Over the past six months, they have lost more than 40% of their value.
